Conforming vs. Jumbo Loans in Arizona — Where the Line Is in 2026
A "jumbo loan" is just a mortgage above the conforming limit set by the FHFA. In Arizona for 2026, that line is $806,500 for a single-family home in standard counties. Anything above falls into jumbo territory and is underwritten to private investor guidelines instead of Fannie / Freddie. Here's exactly what changes when you cross.
The 2026 conforming limit in Arizona
- Single-family standard counties: $806,500
- 2-unit: $1,032,650
- 3-unit: $1,248,150
- 4-unit: $1,551,250
- Most Arizona counties use the standard limit. High-cost designation can push limits higher in select metros — verify against the current FHFA chart for your specific county.
What changes when you cross into jumbo territory
- Underwriting: private investor guidelines instead of Fannie / Freddie automated underwriting. More overlays, more file-specific decisions.
- Loan size: typically up to $3M on standard programs; super jumbo treatment above $3M.
- FICO floors: tighter — 660 minimum on most jumbo programs vs. 620 on conforming.
- Reserves: 6 months of PITIA at standard amounts, scaling to 12–18 months at $3M+.
- Down payment: 90% LTV available on smaller jumbos (≤$1.5M); typically 80% LTV at $1.5M–$3M; 70–75% on super jumbo.
- Pricing: often not meaningfully higher than conforming on strong files. Jumbo pricing has tightened materially over the last several years.
What stays the same
- Down payment is still equity contribution; closing costs are still 2–4% of loan.
- FHA and VA aren't typically jumbo (different programs entirely — VA can exceed conforming limits in high-cost counties without becoming "jumbo").
- Owner-occupancy still drives the best pricing; second-home and investor pricing tiers exist but at lower LTV.
The split-loan trick (and why it's mostly outdated)
Old strategy: take a conforming first loan up to the limit and a HELOC or piggyback second to bridge to the purchase price. The math used to favor it because conforming pricing was much sharper than jumbo. That gap has largely closed. Today, a single jumbo loan often prices better and is operationally simpler than a split.
Next step
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