Conforming vs Jumbo Loans in San Francisco (2026 Limits)

For 2026 the conforming loan limit in San Francisco is $1,249,125 for a one-unit home, the national high-cost ceiling. Anything above that is a jumbo loan, priced and underwritten by each lender rather than to Fannie Mae and Freddie Mac rules. With brokerage reports putting the median SF single-family price near $2 million in 2026 and condo medians above $1.2 million, most house buyers and a good share of condo buyers here are jumbo borrowers, often without realizing it changes which lenders they should call.

The three tiers

High-balance loans are agency loans, so they get automated underwriting, 3% to 5% down options and PMI instead of a bigger down payment. But Fannie Mae charges extra loan-level price adjustments on them; since the 2022 increase they have run from half a point of the loan amount at 60% loan-to-value or less, to three-quarters of a point up to 75%, to a full point above that, per Fannie Mae's current matrix, which is updated periodically; the matrix waives them for first-time buyers whose qualifying income is at or below Fannie Mae's area income threshold. Those adjustments are why a high-balance quote can land close to, or above, a jumbo quote.

Why most SF purchases are jumbo and how to stay under the line

The tier is set by the loan, not the price. A $1.6 million house with 20% down is a $1.28 million loan: jumbo. Put down $350,875 instead of $320,000 and the loan is $1,249,125: high-balance conforming, with agency underwriting and the lenders that go with it. Whether that extra $31,000 is worth it depends on the same-day quotes, which is the point of asking every lender for both structures.

The other way under the line is a piggyback: a first mortgage at or below the limit plus a second loan or HELOC for the rest. Chase describes this as an alternative to a jumbo when you need to borrow above the conforming limit, and it is covered below.

How jumbo underwriting differs

The reserve line is where SF buyers get caught. Twelve months of a $9,000 payment is $108,000 that cannot go toward the down payment or the appraisal gap. Down payment and PMI covers how to size the pile.

Rate reality: jumbo is sometimes cheaper, and why

Advertised rates do not settle this. In Bankrate's 2026 surveys, national average jumbo and conforming rates have sat within a few tenths of a point of each other, and lenders describe the typical gap as a quarter point or less, down from half a point or more in 2022 and 2023. Yet since early 2022 the relationship has flipped at times, with jumbo pricing below conforming, for two reasons. High-balance conforming carries the agency price adjustments described above. And jumbo loans are often held by banks that want the borrower relationship, so they price to win strong files.

The practical rule: a loan near $1.25 million should be quoted both ways on the same day, and a loan well above it should be quoted by at least one portfolio bank, one credit union and one broker. Shopping lenders gives the method.

Portfolio banks and relationship pricing

Jumbo is where relationship pricing is real. Large banks publish tiered discounts for new deposits or investment balances, commonly from about an eighth of a point for six-figure balances to half a point or more for seven-figure balances, and Bankrate's August 2026 review found Chase's top tier reaching a full point for $1.5 million in new assets, while a $75,000 deposit earned only 0.05 point. Tiers change often and moving assets has its own costs, but if you already hold investment accounts, ask every bank you quote what tier you fall in and get the current schedule in writing. Credit unions frequently undercut the banks on jumbo without asset requirements.

Piggyback structures (80/10/10) to avoid jumbo or PMI

An 80/10/10 puts 80% of the price in a first mortgage, 10% in a second loan or HELOC, and 10% down. Used below the conforming limit it avoids PMI; used above it, it can keep the first mortgage at $1,249,125 and conforming. The second loan carries a higher rate, often variable if it is a HELOC, and both payments count in your debt ratio. It works when the blended cost beats a straight jumbo on the same day, which you can only know by asking. Not every lender offers one.

Condo and TIC complications

Warrantable vs non-warrantable condos. Fannie Mae and jumbo lenders alike review the project, not just you. Typical disqualifiers: an HOA budget that sets aside less than 10% for reserves, more than 15% of units 60 or more days delinquent on dues, pending litigation naming the HOA over structure or safety, a single entity owning more than a set share of units, and large commercial space. A non-warrantable building means a portfolio lender, a higher rate and often 20% to 25% down. Get the HOA questionnaire and budget to your lender before you write; HOA documents explains what to pull.

TICs. Tenancy-in-common interests cannot be financed with a conventional mortgage. A handful of lenders make fractional loans secured by your share alone; National Cooperative Bank's program, for example, offers adjustable-rate fractional loans with 20% or more down and notes that there is no secondary market for them, which is why long-term fixed rates are rare. Expect higher rates and fewer choices. TIC attorneys and fractional lenders covers the team you need.

ARMs, interest-only, and who to call by loan size

Adjustable-rate and interest-only jumbo products are common in SF because they fit high earners with variable compensation. San Francisco Federal Credit Union, for example, advertises interest-only adjustable-rate loans for jumbo amounts. Interest-only requires strong credit, often a 740 score or higher, and a plan for the payment jump.

Shortlist by loan size:

• Up to $1,249,125: any agency lender, plus credit unions and brokers; ask for high-balance and jumbo quotes side by side above $832,750.
• $1.25 million to $2 million: jumbo-focused banks, Bay Area credit unions, and a broker with multiple jumbo investors.
• Above $2 million: private banks and portfolio lenders with relationship pricing; expect a second appraisal and full asset review.
• TIC: fractional lenders only.

Whatever the tier, know the number recent sales support before you decide how much loan you need. The comps tool shows you the predicted price and the sales behind it.

What to shop for right now

• Jumbo mortgage lender (savings: high). Jumbo pricing is not standardized the way agency loans are; banks, credit unions and portfolio lenders can differ by half a point on the same borrower, and relationship discounts alone range from an eighth of a point to a full point. Quote at least three on the same day, for the exact loan amount, and ask each for its reserve requirement and second-appraisal threshold.