One of the first things I help buyers figure out is whether they are shopping in conforming or jumbo territory, because it changes the loan you'll use. Conforming loan limits are set each year, and high-cost California counties get higher limits — which matters a lot in pricey areas like ours.
What 'conforming' actually means
A conforming loan is one that meets the size and guideline standards used by Fannie Mae and Freddie Mac. The size cap is the conforming loan limit. Stay at or below it and you are in conforming territory, which usually means more competitive pricing and more lender options. Go above it and you are into jumbo financing.
Why high-cost counties get higher limits
The FHFA sets a national baseline limit and then raises it in designated high-cost areas where home prices run well above average. Much of coastal and Southern California, including parts of the greater region around Ventura County, can qualify for higher limits. This is meant to keep ordinary homes financeable with conforming loans even where prices are high.
How the limit is updated each year
Limits are recalculated annually based on national home-price changes, so they typically move with the market. That is why I never quote a fixed dollar figure that might be stale — the right move is to confirm the current year's limit for your specific county with a lender before you make offers.
One-unit vs multi-unit limits
Conforming limits are higher for 2–4 unit properties than for single-family homes. If you are considering a duplex or small multi-unit as an owner-occupant, the applicable limit will be larger. Confirm the current figure for the number of units you are buying.
How this affects your Simi Valley search
With a median price of roughly $850,000 in Simi Valley, many local homes sit near the line between conforming and jumbo. Knowing your loan amount relative to the county limit tells you which underwriting box you are in, what your down payment might look like, and how to structure an offer. I walk buyers through this early so financing never derails a deal.
How to confirm your county's limit
- Ask your lender for the current-year conforming limit for your county.
- Confirm whether your area qualifies for high-cost limits.
- Compare your expected loan amount to that limit.
- If you are above it, plan for jumbo guidelines.
Frequently Asked Questions
What is the conforming loan limit for 2026?
The exact figure changes each year and varies by county, with high-cost California counties receiving higher limits than the national baseline. Rather than rely on a number that may be outdated, confirm the current limit for your specific county with a licensed lender before you start making offers.
Is Ventura County a high-cost area?
Parts of high-priced California can qualify for elevated conforming limits because local home prices exceed the national average. Whether your county or property qualifies, and at what limit, should be confirmed with a lender for the current year, since the FHFA updates designations and figures annually.
What happens if my loan is above the limit?
If your loan amount exceeds the conforming limit, it becomes a jumbo loan. Jumbo loans follow stricter guidelines — often higher credit, lower debt-to-income, and more reserves. They are common in our market. A lender can tell you whether your purchase falls into conforming or jumbo territory.
Do conforming limits change every year?
Yes. The FHFA recalculates limits annually based on national home-price changes, so they usually move with the market. Because of this, any specific dollar figure can become outdated quickly. Always confirm the current year's limit for your county before relying on it.
Are limits higher for a duplex or multi-unit?
Yes. Conforming limits are higher for 2–4 unit properties than for single-family homes. If you are buying a small multi-unit as an owner-occupant, the applicable limit is larger. Confirm the current figure for the number of units with your lender.
Why does the conforming limit matter to me?
It determines whether you use a conforming or jumbo loan, which affects your rate options, down payment, and qualifying standards. Staying conforming often means more competitive pricing and more lenders to choose from. Knowing where you fall helps you shop and structure offers with confidence.
