Buying in The Castro and unsure if your mortgage will be conforming or jumbo? In a neighborhood where many homes sell near two million dollars, this choice affects your budget, timeline, and offer strength. In a few minutes, you will learn the 2025 loan limits in San Francisco, how they compare to Castro prices, and how to pick the right path for your goals. Let’s dive in.
Conforming vs. jumbo loans: the basics
Conforming loans are conventional mortgages that fit within the Federal Housing Finance Agency’s limits and can be purchased by Fannie Mae or Freddie Mac. The FHFA updates these limits each year. See the FHFA’s announcement for 2025 values. Review the FHFA’s 2025 conforming loan limits.
Jumbo loans are any amounts above the county’s conforming limit. They are not eligible for sale to Fannie Mae or Freddie Mac and are underwritten by lenders with their own rules. Learn how the CFPB defines a jumbo loan.
2025 limits in San Francisco County
- National baseline one-unit limit for 2025: $806,500.
- High-cost ceiling for 2025: $1,209,750.
- San Francisco County uses the high-cost ceiling for one-unit homes in 2025: $1,209,750.
These values come from the FHFA’s 2025 release dated Nov 26, 2024. See the FHFA 2025 announcement. For a California-specific reference, you can also check the published county list. View California conforming limits.
Key point: any loan amount above $1,209,750 in San Francisco County will generally be treated as a jumbo in 2025.
Why this matters in The Castro
The Castro’s pricing often sits above the conforming ceiling. As of August 2025, Redfin reports a median sale price around $2,000,000. See Redfin’s Castro market snapshot. Other summaries show recent medians in the high-six to low-seven figures, such as $1,875,000 to $2,495,000 in 2024–2025 snapshots. Check the RocketHomes Castro report.
At those price points, a typical 20 percent down payment still leaves a loan amount above the $1,209,750 conforming ceiling. This is why many Castro buyers use jumbo financing unless they make a larger down payment or target lower-priced homes.
How lenders view jumbo vs. conforming
- Credit, debt, and reserves. Jumbo loans usually require stronger profiles, such as higher credit scores, lower debt-to-income ratios, and more months of reserves. Read the CFPB’s overview of jumbo requirements. Lender overlays vary, so compare requirements. See how lender rules can differ.
- Down payment. Conforming programs can allow low down payments with eligibility. For example, Fannie Mae’s HomeReady may permit as little as 3 percent down for qualified borrowers and properties. Explore Fannie Mae HomeReady. Jumbo loans commonly require larger down payments, often 10 to 20 percent depending on the lender.
- Mortgage insurance. Conforming loans with less than 20 percent down typically require private mortgage insurance, and PMI can be cancellable once your loan-to-value reaches 80 percent under conventional rules. Understand PMI on conventional loans.
- Rates and fees. Jumbo rates used to be meaningfully higher. In recent years the gap has narrowed and, at times, jumbo pricing can be similar to or even slightly lower than conforming for well-qualified borrowers. Actual pricing changes with the market, so shop around. See recent jumbo rate context.
Government-backed options like FHA and VA have their own limits and rules, which are separate from conforming limits and may not reach the price points common in The Castro. Review HUD’s 2025 FHA limit announcement.
Real Castro scenarios: quick math
Use this formula to see if you can stay conforming: purchase price minus $1,209,750 (the 2025 San Francisco one-unit limit) equals the minimum down payment needed to keep the loan conforming.
Example A: $2,000,000 purchase
- Minimum down to stay conforming: $2,000,000 − $1,209,750 = $790,250 (about 39.5 percent).
- With 20 percent down ($400,000), the loan would be $1,600,000, which is jumbo.
Example B: $1,875,000 purchase
- Minimum down to stay conforming: $1,875,000 − $1,209,750 = $665,250 (about 35.5 percent).
- With 20 percent down, the loan would be about $1,500,000, which is jumbo.
Example C: $1,100,000 condo
- The price is below the conforming ceiling, so a conforming loan is possible, subject to program and credit rules. Some programs allow low down payments for eligible borrowers. See Fannie Mae’s HomeReady overview.
Your action plan
- Confirm the current county limit before you apply. Loan limits refresh annually. Check the FHFA’s 2025 limits.
- Run the math early. Compare your expected price against $1,209,750 to see if your target loan will be conforming or jumbo.
- Get more than one preapproval. Jumbo requirements and pricing vary by lender. Ask about minimum down payment, reserve needs, documentation, and closing timelines. Compare how lender overlays can differ.
- If you want to stay conforming, consider a larger down payment, a lower-priced property, or eligible programs that allow low down payments. Review HomeReady basics.
- If you will need a jumbo, plan for stricter documentation, potentially higher reserves, and possibly a longer underwriting process. Ask lenders about fixed versus adjustable-rate options and how each affects qualification.
Offer strength in a competitive Castro market
The Castro often moves fast, which means a strong, current preapproval and clear proof of funds can help you compete. Align your price target with your loan path before you start touring. Ask lenders for realistic underwriting timelines so you can write offers with confidence and meet seller expectations on speed.
Ready to map your financing to the right Castro property and write a compelling offer? Let’s talk about your price band, loan path, and timing. Connect with Rowbotham- Brian/Andrea for calm, data-driven guidance and local expertise.
FAQs
What is the 2025 conforming loan limit in San Francisco County?
- The one-unit limit is $1,209,750 per the FHFA’s 2025 release.
How much down keeps a $2,000,000 Castro purchase conforming?
- About $790,250 down, which brings the loan to the $1,209,750 ceiling.
Are jumbo mortgage rates always higher than conforming rates?
- Not always; recent markets have seen similar or even slightly lower jumbo pricing for strong borrowers, depending on the lender.
Can I use PMI if I put less than 20 percent down on a conforming loan?
- Yes; conventional loans typically require PMI under 20 percent down, and it can be cancellable once you reach 80 percent loan-to-value.
Should I get multiple preapprovals if I need a jumbo loan in The Castro?
- Yes; lender rules, reserve requirements, and pricing vary, so comparing at least two to three preapprovals is smart.
