Conforming Loans
Conforming Loans in California, Texas & Florida
If you are planning to purchase or refinance a home, a conforming conventional mortgage may be one of the financing options available to you.
Khan Home Loan LLC helps qualified borrowers explore conforming mortgage options in California, Texas, and Florida, subject to applicable Fannie Mae or Freddie Mac requirements, lender underwriting guidelines, property eligibility, licensing requirements, and current program availability.
Conforming loan limits are established annually by the Federal Housing Finance Agency (FHFA). Fannie Mae and Freddie Mac use the applicable limits when determining whether mortgages are eligible under their respective requirements.
What Is a Conforming Loan?
A conforming loan is generally a conventional mortgage that meets applicable requirements established for mortgages eligible for purchase by Fannie Mae or Freddie Mac, including the applicable conforming loan limit.
Fannie Mae and Freddie Mac are government-sponsored enterprises. They do not generally originate residential mortgages directly for consumers. Instead, they purchase eligible mortgages from approved lenders and help support liquidity in the U.S. housing finance market.
Conforming mortgage requirements can address areas such as:
- Maximum applicable loan amount
- Borrower credit and financial history
- Income and employment documentation
- Assets and funds used for the transaction
- Debt obligations
- Property type and occupancy
- Appraisal and property requirements
- Loan purpose
- Mortgage insurance when applicable
- Other Fannie Mae, Freddie Mac, and lender requirements
Individual lenders may also apply additional underwriting requirements. Final eligibility is determined through the mortgage application and underwriting process.
2026 Conforming Loan Limits
The Federal Housing Finance Agency establishes conforming loan limits each year.
For 2026, the national baseline conforming loan limit for a one-unit property in most areas of the contiguous United States is:
2026 One-Unit Baseline Limit
$832,750
2026 Maximum One-Unit High-Cost Area Ceiling
$1,249,125
The high-cost-area amount above is the maximum national ceiling. It is not automatically the conforming loan limit for every high-cost county.
Some counties have limits between the national baseline and the maximum high-cost ceiling. The applicable limit should therefore be confirmed using the property's county and number of residential units.
2026 Baseline and Maximum High-Cost Limits
| Property Units | 2026 National Baseline Limit | 2026 Maximum High-Cost Area Ceiling |
|---|---|---|
| 1 Unit | $832,750 | $1,249,125 |
| 2 Units | $1,066,250 | $1,599,375 |
| 3 Units | $1,288,800 | $1,933,200 |
| 4 Units | $1,601,750 | $2,402,625 |
Why Does the County Matter?
Conforming loan limits can vary geographically because federal law allows higher limits in designated high-cost housing areas.
This means two properties with the same purchase price can be subject to different conforming loan limits if they are located in different counties.
Before determining whether a proposed conventional mortgage falls within the applicable conforming limit, the following should be confirmed:
- The property's county or county-equivalent
- The number of residential units
- The applicable calendar-year loan limit
- The original loan amount being requested
- Applicable Fannie Mae or Freddie Mac eligibility requirements
Khan Home Loan LLC can help borrowers review the applicable current conforming loan limit for the property involved in their transaction.
Conforming Loans in California
California County Loan Limits
California contains both baseline-limit counties and designated high-cost areas. As a result, the applicable conforming limit can vary significantly from one California county to another.
For example, a borrower should not assume that the maximum high-cost ceiling applies throughout California. The applicable county-specific limit must be confirmed for the property being financed.
A California mortgage must also satisfy applicable borrower, property, documentation, underwriting, and lender requirements in addition to being within the applicable loan limit.
Conforming Loans in Texas
Qualified borrowers purchasing or refinancing eligible properties in Texas may explore conforming conventional mortgage options through Khan Home Loan LLC, subject to applicable lender and program requirements.
Loan eligibility is not determined solely by the loan amount. Credit, income, assets, debts, property characteristics, occupancy, appraisal, loan purpose, and other underwriting factors may also apply.
Any written Texas conditional pre-qualification or conditional approval documentation provided in connection with a mortgage transaction is subject to applicable Texas requirements.
A preliminary discussion, estimate, or mortgage inquiry should not be interpreted as final loan approval or a commitment to lend.
Conforming Loans in Florida
Qualified borrowers purchasing or refinancing eligible properties in Florida may explore conforming mortgage options that are currently available through participating lenders.
Florida includes areas where the applicable conforming limit may differ from the standard national baseline. The correct county-specific limit should be verified for the property and calendar year involved.
Access to mortgage credit is subject to material requirements and limitations, including applicable underwriting, documentation, property, loan amount, and lender requirements.
Conforming Loan vs. Jumbo Loan
A jumbo mortgage generally refers to a conventional mortgage with a loan amount above the applicable conforming loan limit for the property location and number of units.
However, the distinction should not be based only on a national headline number. High-cost-area limits can vary by county.
| Feature | Conforming Mortgage | Jumbo / Non-Conforming Mortgage |
|---|---|---|
| Loan Amount | Must remain within the applicable conforming loan limit for the property location and number of units. | Commonly includes mortgage amounts above the applicable conforming loan limit. |
| Guidelines | Must satisfy applicable Fannie Mae or Freddie Mac requirements and lender underwriting standards. | Subject to the applicable lender or investor's non-conforming program requirements. |
| Credit Requirements | Depend on the particular loan program, borrower, property, automated underwriting findings, and lender. | Depend on the particular jumbo lender, program, borrower, property, and transaction. |
| Down Payment | Requirements depend on the particular conforming program and borrower circumstances. | Requirements depend on the applicable jumbo lender and program. |
| Debt-to-Income Review | Evaluated under applicable underwriting and lender guidelines. | Evaluated under applicable lender and program guidelines. |
| Assets / Reserves | Requirements vary according to the transaction, property, occupancy, loan program, and underwriting. | Requirements vary according to the jumbo lender, loan amount, borrower, property, and program. |
| Rates & Costs | Based on current market pricing and the individual loan scenario. | Based on current market pricing and the individual loan scenario. |
Potential Features of Conforming Mortgage Programs
Conforming conventional mortgages are widely used for residential financing and may provide multiple program structures depending on the borrower and transaction.
Potential features may include:
- Financing options for eligible primary residences, second homes, or investment properties, depending on the program
- Fixed-rate or certain adjustable-rate mortgage structures when available
- Different down-payment structures for eligible borrowers and property types
- Options for eligible one-unit and multi-unit residential properties
- Standardized Fannie Mae or Freddie Mac underwriting frameworks
- Mortgage insurance structures for certain transactions where applicable
Availability and qualification for any particular feature depend on the specific borrower, property, lender, and loan program.
Conforming Loans Are Not FHA, VA, or USDA Loans
A conforming mortgage should not be confused with a government-backed mortgage.
Conforming loans are generally conventional mortgages that satisfy applicable Fannie Mae or Freddie Mac requirements.
FHA, VA, and USDA mortgages operate under separate federal programs and have their own eligibility rules, underwriting standards, fees, property requirements, and applicable loan or program limits.
Khan Home Loan LLC can discuss available mortgage program categories based on an applicant's circumstances, subject to current product availability and lender guidelines.
How Do You Qualify for a Conforming Mortgage?
There is not one universal credit score, debt-to-income ratio, or down-payment requirement that accurately describes every conforming mortgage transaction.
Qualification can depend on factors including:
- Credit history and credit profile
- Qualifying income
- Employment or other permitted income sources
- Monthly debt obligations
- Available assets
- Funds required for closing
- Property type
- Primary residence, second home, or investment occupancy
- Loan purpose
- Loan-to-value and equity position
- Automated or manual underwriting requirements
- Applicable mortgage insurance requirements
- Lender-specific underwriting requirements
Khan Home Loan LLC can review your mortgage application and help identify currently available loan options for which you may qualify.
Conforming Mortgage Process
Step 1: Discuss Your Financing Goals
Begin by discussing the property, intended occupancy, approximate purchase price or property value, financing goals, and financial circumstances with a mortgage professional.
Step 2: Review Financial Information
Depending on the transaction, the mortgage process may involve review of information relating to:
- Income
- Employment
- Assets
- Credit
- Monthly debts
- Property information
- Other applicable documentation
Step 3: Determine the Applicable Loan Limit
The property's county and number of units are used to determine the applicable conforming loan limit for the calendar year.
Step 4: Complete the Mortgage Application
The borrower completes the required mortgage application and provides supporting documentation requested for the particular loan program.
Step 5: Property Appraisal and Review
An appraisal or other permitted property valuation may be required, depending on the transaction and applicable underwriting requirements.
Step 6: Underwriting
The lender reviews the complete mortgage file against applicable program and underwriting requirements.
Additional documents or conditions may be requested before a final decision is made.
Step 7: Final Loan Decision and Closing
Final approval is subject to satisfactory underwriting and completion of all applicable conditions.
Before closing, borrowers should carefully review the applicable Loan Estimate, Closing Disclosure, and final loan documents to understand the mortgage terms, costs, and obligations.
Understanding Mortgage Pre-Qualification
A mortgage pre-qualification or preliminary mortgage review may help a prospective homebuyer better understand the financing range that may be available based on information provided at that time.
It may also help borrowers identify documentation or financing issues before entering into a purchase transaction.
For Texas transactions, written conditional pre-qualification or approval documentation, when issued, is subject to applicable Texas requirements.
Frequently Asked Questions About Conforming Loans
Who Sets Conforming Loan Limits?
The Federal Housing Finance Agency (FHFA) establishes conforming loan limits annually under federal law.
Fannie Mae and Freddie Mac apply applicable conforming limits when evaluating mortgages for purchase under their respective requirements.
What Is the 2026 Conforming Loan Limit?
For a one-unit property in most areas of the contiguous United States, the 2026 baseline conforming loan limit is $832,750.
The maximum one-unit high-cost-area ceiling for 2026 is $1,249,125.
Actual high-cost county limits may fall between these amounts, so the applicable county-specific limit must be confirmed.
Do All California Counties Have the Same Loan Limit?
No. California includes both baseline and high-cost areas.
The applicable conforming loan limit depends on the county and number of residential units in the property.
Does the Purchase Price Have to Be Below the Conforming Loan Limit?
Not necessarily.
The conforming loan limit generally applies to the original mortgage loan amount, not simply the property's purchase price.
The borrower's loan amount, down payment or equity, property value, and applicable underwriting requirements all affect the transaction.
Is Every Loan Below the Conforming Limit a Conforming Loan?
No.
The mortgage must also satisfy applicable Fannie Mae or Freddie Mac eligibility requirements. A loan amount being below the applicable limit by itself does not establish conforming eligibility.
What Happens if My Loan Amount Is Above the County Limit?
A conventional mortgage above the applicable conforming limit may require consideration of a jumbo or another non-conforming mortgage program, depending on the transaction and available lender programs.
Qualification requirements and terms vary by lender and program.
Are Conforming Mortgage Rates Always Lower Than Jumbo Rates?
No blanket statement should be made that one mortgage category always has a lower interest rate than another.
Mortgage pricing changes with market conditions and depends on factors such as the loan program, borrower profile, loan amount, property, occupancy, term, points, and lender pricing.
Borrowers should compare the actual available rate, APR, costs, and other terms for their individual transaction.
Do Conforming Loans Require a Specific Credit Score?
Credit requirements depend on the applicable Fannie Mae or Freddie Mac program, underwriting method, borrower profile, and lender requirements.
Khan Home Loan LLC should not present one credit-score number as a guarantee of eligibility for every conforming mortgage.
Is There One Maximum DTI for Every Conforming Loan?
No single debt-to-income ratio should be advertised as applying to every conforming mortgage.
Debt-to-income evaluation depends on the loan program, underwriting findings, borrower characteristics, compensating factors when applicable, and lender requirements.
Do Conforming Loans Require Cash Reserves?
Reserve requirements depend on the individual transaction.
Factors such as property type, number of financed properties, occupancy, loan structure, underwriting findings, and lender requirements can affect whether reserves are required and how much must be documented.
Can I Use a Conforming Loan for an Investment Property?
Certain conforming conventional programs may permit eligible investment property transactions, subject to applicable Fannie Mae or Freddie Mac requirements and lender underwriting standards.
Can I Finance a Two-, Three-, or Four-Unit Property?
Certain eligible two-, three-, and four-unit residential properties may qualify for conforming financing.
Different conforming loan limits apply according to the number of units, and additional property, occupancy, underwriting, and reserve requirements may apply.
Why Work With Khan Home Loan LLC?
Khan Home Loan LLC helps qualified borrowers understand mortgage options that may currently be available based on their individual circumstances.
Our team can help you:
- Understand current conforming mortgage limits
- Identify the applicable county loan limit
- Review available conventional mortgage options
- Understand general documentation requirements
- Navigate the mortgage application process
- Respond to lender documentation requests
- Understand the appraisal and underwriting process
- Review next steps leading toward closing
Khan Home Loan LLC does not guarantee eligibility, approval, a particular interest rate, loan amount, closing timeline, or financial outcome.
Explore Conforming Mortgage Options
If you are purchasing or refinancing an eligible property in California, Texas, or Florida, Khan Home Loan LLC can help you understand conforming mortgage options that may currently be available.
Phone: 562-331-8994
Website: www.khanhomeloan.com
Submitting an inquiry, providing financial information, receiving a preliminary mortgage review, or submitting an application does not guarantee approval and does not constitute a commitment to lend.
Important Conforming Mortgage Disclosure
Conforming loan limits are established annually by the Federal Housing Finance Agency and vary based on property location and number of units. High-cost-area loan limits are county-specific and should be verified for the individual property.
Mortgage programs are subject to borrower eligibility, applicable Fannie Mae or Freddie Mac requirements, lender underwriting guidelines, property eligibility, appraisal requirements, licensing requirements, and current program availability.
Specific interest rates, APRs, payments, down payments, points, fees, closing costs, credit-score requirements, debt-to-income limits, and reserve requirements are not stated on this page because actual terms and qualification requirements depend on the individual transaction, applicable program, lender guidelines, and current pricing.
Programs subject to eligibility and lender guidelines. Rates and terms subject to change. Not a commitment to lend. Not all borrowers qualify. Equal Housing Opportunity.
Khan Home Loan LLC | Company NMLS ID 2092207 | Mohammad A. Khan, NMLS ID 1395289 | www.khanhomeloan.com | Equal Housing Opportunity