What Is a Jumbo Loan and Will I Need One to Move Up in Orange County?

The Federal Housing Finance Agency (FHFA) explains that Fannie Mae and Freddie Mac can only buy single-family mortgages below a set amount, called the conforming loan limit. Loans above that amount are known as jumbo loans.

I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. When a family is moving up, the loan type is one of the first things we sort out with their lender, because it shapes the budget and the timeline.

The key word is loan. The limit applies to how much you borrow, not the price of the home.

The FHFA announced on November 25, 2025, that the 2026 baseline limit for a one-unit home is $832,750 in most of the country. In high-cost areas, the ceiling is $1,249,125, which is 150% of the baseline.

The FHFA's 2026 county list shows Orange County at that ceiling. The one-unit limit is $1,249,125, with higher limits for two- to four-unit properties.

Loans between the baseline and your county's limit are sometimes called "conforming jumbo" loans. The Consumer Financial Protection Bureau (CFPB) describes them as conforming loans with a higher limit in certain counties. A true jumbo loan is anything above the county limit.

It depends on your price and your down payment. Here's a simple way to check:

Price minus down payment = loan amount.

In my July 2026 market snapshot, the average single-family sale price was about $1.9 million in Huntington Beach and about $1.5 million in Fountain Valley.

• On a $1.9 million home with 20% down, the loan would be about $1.52 million. That's above the limit, so it would likely be a jumbo loan.
• On a $1.5 million home with 20% down, the loan would be $1.2 million. That's under the limit.
• To stay at or under $1,249,125 on a $1.9 million home, you'd need a down payment of about $650,875.

Equity from the home you're selling often closes that gap. My article on how much home you can afford when you move up walks through the full budget.

The CFPB says jumbo loan requirements vary by lender, and borrowers typically need strong credit and a large down payment. Because these loans aren't sold to Fannie Mae or Freddie Mac, each lender sets its own rules.

Ask each lender about:

• Minimum credit score for the loan amount you need
• Down payment they require
• Reserves, meaning savings left over after closing
• Debt-to-income limits, explained in my article on debt-to-income ratios
• Appraisal requirements for the loan amount you need
• Rate and fees, compared side by side on each Loan Estimate

1. Get pre-approved for the actual loan type. A conforming pre-approval won't tell you how a jumbo lender sees your file.
2. Decide on timing. If you need your current home's equity for the down payment, the order of selling and buying matters. See what to plan for if you sell before you buy and bridge loans.
3. Run more than one scenario. A slightly larger down payment can sometimes move a loan under the limit.
4. Ask about your current rate. If you're leaving a low rate, my article on giving up a low mortgage rate can help you weigh it.

This is general information, not lending advice. Your lender can tell you which loan fits your situation and what you'd qualify for.

If your family is thinking about moving up, I'd love to help you map out the numbers and the timing with your lender. Call or text me at 714.366.8575 | DRE: 01397168, or contact me. Jeanette Nelson is a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas.