Shopping for a home in Santa Clara County often comes down to one question: how far will your loan type take you. With prices spanning condos to luxury estates, understanding conforming, high-balance, and jumbo loans can shape your budget, rate, and approval path. In this guide, you will learn what each loan band means in 2024, how limits translate into purchase prices at different down payments, and how they affect your monthly payment and PMI. Let’s dive in.
Quick definitions buyers need
Conforming loan (baseline)
A conforming loan is any mortgage at or below the national baseline limit set by the Federal Housing Finance Agency (FHFA). These loans are eligible for Fannie Mae and Freddie Mac and usually offer the most competitive rates and flexible underwriting.
High-balance conforming
High-balance loans apply in high-cost counties where FHFA sets a higher cap. These loans are still conventional, not jumbo, and often price similarly to baseline conforming loans. Santa Clara County is a high-cost area in 2024.
Jumbo loan
A jumbo loan is any mortgage amount above your county’s conforming limit. Jumbos are not purchased by Fannie or Freddie, so lenders typically require larger down payments, stronger credit, and more reserves.
2024 Santa Clara loan limits
For 2024, FHFA published the following single-unit limits used here as an example:
- Baseline conforming: 766,550 dollars
- High-cost ceiling (applies to Santa Clara): 1,149,825 dollars
How this maps to loan type:
- Loan at or below 766,550 dollars: baseline conforming
- Loan from 766,551 to 1,149,825 dollars: high-balance conforming
- Loan above 1,149,825 dollars: jumbo
Always confirm the current-year county limit with FHFA when you start your search since limits update annually.
Turn limits into purchase price bands
Use this simple formula to translate a loan limit into a target purchase price: maximum price = loan limit divided by (1 minus down payment percentage).
With 20 percent down
- Baseline conforming max price: about 958,188 dollars
- High-balance conforming max price: about 1,437,281 dollars
With 10 percent down
- Baseline conforming max price: about 851,722 dollars
- High-balance conforming max price: about 1,277,583 dollars
With 5 percent down
- Baseline conforming max price: about 806,895 dollars
- High-balance conforming max price: about 1,210,342 dollars
With 3 percent down
Some conventional programs allow 3 percent down for eligible first-time buyers.
- Baseline conforming max price: about 790,268 dollars
- High-balance conforming max price: about 1,185,381 dollars
Practical takeaway: many single-family homes in Santa Clara County list above the baseline band. High-balance conforming gives you conventional financing options at larger price points. If your target price pushes the loan above the county limit, you cross into jumbo territory with different requirements.
How loan band changes your costs
Down payment and PMI
- Conforming and high-balance conforming can go as low as 3 to 5 percent down on some programs. If you put less than 20 percent down, you will likely have PMI. Typical annual PMI ranges roughly from 0.3 percent to 1.5 percent of the loan amount and depends on credit score and down payment.
- Jumbo loans commonly require 10 to 20 percent down, often 20 percent for better pricing, and larger cash reserves.
Quick PMI estimate method: monthly PMI = loan amount times annual PMI rate divided by 12. For example, a 0.75 percent PMI rate on a 700,000 dollar loan is about 438 dollars per month.
Interest rate and monthly payment
A quick way to estimate principal and interest on a 30-year fixed is to use a per-1,000 dollar factor.
- At 6.5 percent, about 6.32 dollars per 1,000 dollars
- At 7.5 percent, about 7.00 dollars per 1,000 dollars
Example: a 960,000 dollar loan (a 1,200,000 dollar purchase with 20 percent down)
- At 6.5 percent, about 6,067 dollars per month
- At 7.5 percent, about 6,720 dollars per month
These estimates exclude property taxes, homeowners insurance, HOA dues, and PMI.
Underwriting differences to expect
- Credit score: conforming can go into the mid 600s on some programs, while best pricing often starts at 700 plus. Many jumbo lenders prefer 700 to 720 plus.
- Debt-to-income: conforming can allow up to about 45 to 50 percent depending on the file. Jumbo is often stricter.
- Reserves: conforming may require 2 to 6 months. Jumbo often requires 6 to 12 months or more, especially with higher loan-to-value ratios.
Smart steps to plan your budget
- Check the current FHFA county limit for Santa Clara when you begin your search.
- Pick a target down payment, then compute your purchase cap with loan limit divided by (1 minus down percent).
- Get preapproved with more than one lender to compare rates, PMI, and required reserves across conforming, high-balance, and jumbo options.
- If your price crosses into jumbo, consider strategies like increasing your down payment, using a second-lien piggyback, or focusing on listings that keep you within the high-balance band.
Real-world examples
Scenario A: first-time buyer at 900,000 dollars
- With 10 percent down, the loan is about 810,000 dollars. That is above the 2024 baseline limit and below the county cap, so it falls into high-balance conforming in Santa Clara.
- Monthly principal and interest at 6.5 percent: 810 times 6.32 is about 5,119 dollars. PMI applies if you put less than 20 percent down.
Scenario B: move-up buyer at 1,500,000 dollars
- With 20 percent down, the loan is about 1,200,000 dollars. That is above the 2024 county high-balance limit, so it is a jumbo loan.
- Expect tighter underwriting, potentially higher rates, and larger reserve requirements. Many borrowers target 20 percent down or more to improve pricing.
How this guides your home search
- If your budget fits within the high-balance band, you can often keep conventional underwriting and pricing, which can reduce monthly cost compared to jumbo.
- If you are close to a cutoff, a small change in down payment or price can move you into a different loan band and meaningfully change rate, PMI, and reserves.
- Aligning your search with the right loan category early can save time and money.
Ready to map these loan bands to your goals in Santa Clara, Palo Alto, Sunnyvale, or nearby Peninsula cities. Reach out to the Heather Lin Real Estate Team for a data-informed strategy and neighborhoods that fit your budget.
FAQs
What is the 2024 conforming loan limit in Santa Clara County
- 766,550 dollars for baseline conforming and 1,149,825 dollars for the high-cost county cap on single-unit homes.
What counts as a jumbo loan in Santa Clara County
- Any loan amount above 1,149,825 dollars in 2024 is considered jumbo for a single-unit property.
How do loan limits translate to purchase price
- Use maximum price = loan limit divided by (1 minus down payment). For example, with 20 percent down at the county cap, max price is about 1,437,281 dollars.
Can I buy with 5 percent down in a high-cost area
- Often yes with high-balance conforming, subject to lender rules and PMI. Jumbo loans typically require larger down payments and reserves.
How can I quickly estimate my monthly payment
- Multiply the loan amount in thousands by a factor. At 6.5 percent on a 30-year fixed, use about 6.32 dollars per 1,000 dollars. At 7.5 percent, use about 7.00 dollars per 1,000 dollars.
Do high-balance conforming loans have PMI
- Yes, PMI usually applies when you put less than 20 percent down. PMI cost depends on your credit, down payment, and loan features.
