SAFE MLO Qualified & Non-Qualified Loan Programs question: designated high-cost county

SAFE MLOQualified & Non-Qualified Loan Programs

In 2026, a borrower needs a one-unit loan of $1,300,000 in a designated high-cost county. How must it be financed?

A As an FHA loan, because FHA has no loan limits
B As a non-conforming jumbo loan
C As a conforming loan, if the borrower puts 20% down
D As a conforming loan, because high-cost areas have no limit at all

Show the answer and explanation

Answer: B. As a non-conforming jumbo loan

For 2026, the one-unit conforming limit ceiling in high-cost areas is $1,249,125, which is 150% of the $832,750 baseline (FHFA, Nov 25, 2025). A $1,300,000 loan exceeds even the ceiling, so it is non-conforming (jumbo). FHA has its own county limits, and a larger down payment does not change the loan-amount test. Source: FHFA 2026 conforming loan limit announcement (Nov 25, 2025) (as at 11 Oct 2026).

Common mistake

Thinking high-cost areas have unlimited conforming limits.

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Original study material mapped to the public NMLS Content Outline; not a real test question.Not affiliated with or endorsed by NMLS, CSBS or SRR. Verify figures and rules against current guidance before relying on them.