Jumbo Loans in 2026: Why Limits, Location, and Assumptions Matter

The recent adjustment in jumbo loan limits shifts the boundary between conforming and non-conforming loans. As more high-balance loans become eligible for agency backing, assumptions around liquidity, credit risk, and required yields can and should change.

It’s vital that your valuation model has the ability to adjust prepayment and refinancing assumptions as borrowers gain access to more favorable conforming rates. That’s why flexible modeling and assumptions matter. At Level1Analytics, assumptions are infinitely flexible and can be customized on the fly, especially important for markets like California (as shown above), where the loan limits are different county by county.

When limits change and markets diverge, precision matters more than ever.