Conforming Loan Limits

Raising The Limits:

The Federal Housing Finance Agency has announced they are raising the conforming loan limits which is good news for homeowners and homebuyers in California. This allows some mortgage loans that were previously labeled “jumbo” to now be placed in the conforming loan limit category. Here are the 2019 Conforming Loan Limits for the 58 counties in California. “One-Unit” refers to a property with one structure (ie a Single Family Residence – SFR), “Two-Unit” is a Duplex etc. Home values have increased over the last few years and raising the loan limits allows more people to qualify for the best available mortgage rates. The Federal Housing Finance Agency (FHFA) updates their conforming loan limits ever year.

Family Home

Current Conforming Mortgage Rates:

Nearly every day we update our clients with current mortgage rate information. We encourage everyone to check back often for the most up-to-date information on mortgage rates in California. We also provide mortgage industry news and insights to help homebuyers and homeowners be better prepared for when they’re ready to move forward.

JB Mortgage Capital, Inc.:

We offer a wide variety of conforming loan programs. From 30 year fixed rate loan programs all the way down to 10 year fixed rate loan programs; we cover a wide spectrum of loan programs to ensure we match our clients needs.  We offer the the best of both worlds when it comes to the mortgage rates and service we provide. Working with JBMC, Inc. you’ll have access to internet low mortgage rates and one-on-one personal service. From application to closing you’ll work with one Loan Officer which enables a much more efficient loan process. We’ve deployed the latest technology to ensure our mortgage rates are among the most competitive in the industry.  We have an “A+” rating with the Better Business Bureau, a “AAA” rating with the Business Consumers Alliance and a “Five Star Rating” with Zillow. Give us a call today to get a no cost – no obligation quote: 1-800-550-5538 or submit an online request for more information (see to the right of this page).

Conforming Loan Amounts In California:

County

State

One-Unit

Two-Unit

Three-Unit

Four-Unit

ALAMEDACA $  726,525 $  930,300 $   1,124,475 $   1,397,400
ALPINECA $  484,350 $  620,200 $     749,650 $     931,600
AMADORCA $  484,350 $  620,200 $     749,650 $     931,600
BUTTECA $  484,350 $  620,200 $     749,650 $     931,600
CALAVERASCA $  484,350 $  620,200 $     749,650 $     931,600
COLUSACA $  484,350 $  620,200 $     749,650 $     931,600
CONTRA COSTACA $  726,525 $  930,300 $   1,124,475 $   1,397,400
DEL NORTECA $  484,350 $  620,200 $     749,650 $     931,600
EL DORADOCA $  552,000 $  706,650 $     854,200 $   1,061,550
FRESNOCA $  484,350 $  620,200 $     749,650 $     931,600
GLENNCA $  484,350 $  620,200 $     749,650 $     931,600
HUMBOLDTCA $  484,350 $  620,200 $     749,650 $     931,600
IMPERIALCA $  484,350 $  620,200 $     749,650 $     931,600
INYOCA $  484,350 $  620,200 $     749,650 $     931,600
KERNCA $  484,350 $  620,200 $     749,650 $     931,600
KINGSCA $  484,350 $  620,200 $     749,650 $     931,600
LAKECA $  484,350 $  620,200 $     749,650 $     931,600
LASSENCA $  484,350 $  620,200 $     749,650 $     931,600
LOS ANGELESCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
MADERACA $  484,350 $  620,200 $     749,650 $     931,600
MARINCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
MARIPOSACA $  484,350 $  620,200 $     749,650 $     931,600
MENDOCINOCA $  484,350 $  620,200 $     749,650 $     931,600
MERCEDCA $  484,350 $  620,200 $     749,650 $     931,600
MODOCCA $  484,350 $  620,200 $     749,650 $     931,600
MONOCA $  529,000 $  677,200 $     818,600 $   1,017,300
MONTEREYCA $  652,050 $  834,750 $   1,009,000 $   1,253,950
NAPACA $  726,525 $  930,300 $   1,124,475 $   1,397,400
NEVADACA $  486,450 $  622,750 $     752,750 $     935,500
ORANGECA $  726,525 $  930,300 $   1,124,475 $   1,397,400
PLACERCA $  552,000 $  706,650 $     854,200 $   1,061,550
PLUMASCA $  484,350 $  620,200 $     749,650 $     931,600
RIVERSIDECA $  484,350 $  620,200 $     749,650 $     931,600
SACRAMENTOCA $  552,000 $  706,650 $     854,200 $   1,061,550
SAN BENITOCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
SAN BERNARDINOCA $  484,350 $  620,200 $     749,650 $     931,600
SAN DIEGOCA $  690,000 $  883,300 $   1,067,750 $   1,326,950
SAN FRANCISCOCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
SAN JOAQUINCA $  484,350 $  620,200 $     749,650 $     931,600
SAN LUIS OBISPOCA $  667,000 $  853,900 $   1,032,150 $   1,282,700
SAN MATEOCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
SANTA BARBARACA $  625,500 $  800,775 $     967,950 $   1,202,925
SANTA CLARACA $  726,525 $  930,300 $   1,124,475 $   1,397,400
SANTA CRUZCA $  726,525 $  930,300 $   1,124,475 $   1,397,400
SHASTACA $  484,350 $  620,200 $     749,650 $     931,600
SIERRACA $  484,350 $  620,200 $     749,650 $     931,600
SISKIYOUCA $  484,350 $  620,200 $     749,650 $     931,600
SOLANOCA $  494,500 $  633,050 $     765,200 $     950,950
SONOMACA $  704,950 $  902,450 $   1,090,850 $   1,355,700
STANISLAUSCA $  484,350 $  620,200 $     749,650 $     931,600
SUTTERCA $  484,350 $  620,200 $     749,650 $     931,600
TEHAMACA $  484,350 $  620,200 $     749,650 $     931,600
TRINITYCA $  484,350 $  620,200 $     749,650 $     931,600
TULARECA $  484,350 $  620,200 $     749,650 $     931,600
TUOLUMNECA $  484,350 $  620,200 $     749,650 $     931,600
VENTURACA $  713,000 $  912,750 $   1,103,350 $   1,371,150
YOLOCA $  552,000 $  706,650 $     854,200 $   1,061,550
YUBACA $  484,350 $  620,200 $     749,650 $     931,600

These increases will help many homeowners and homebuyers in California obtain better mortgage rates in 2019.

Rising Prices Bring Higher Limits in 2019:

At the end of 2018, federal housing officials increased the conforming loan limits for California;  and in a November 27 press release, the Federal Housing Finance Agency stated:

“Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019.  In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. 

Baseline limit:

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third quarter 2018 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.9 percent, on average, between the third quarters of 2017 and 2018.  Therefore, the baseline maximum conforming loan limit in 2019 will increase by the same percentage.”

For the most current information available, visit www.FHFA.gov.

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Conforming Loan Programs:

The Conforming loan programs are the most popular loan programs out there. Below we cover everything you need to know about Conforming loans, what type of Conforming loans are available, getting qualified and Conforming loans for people with less than perfect credit. At JB Mortgage Capital, Inc. we encourage people to ask questions and if you have any questions about Conforming loans please be sure to let us know. You can contact us at 1-800-550-5538 or through our website. You can even connect with us on Social Media if that works better for you.

Tan and Yellow HomeWhat Is A Conforming Loan:

A Conforming loan is a mortgage loan that “conforms” to the underwriting standards of Fannie Mae or Freddie Mac. All Conforming loans go through an Automated Underwriting System (AUS) prior to an actual underwriter reviewing the file. A Conforming loan is a Conventional loan and a Conventional loan is any mortgage loan that is not backed by the U.S. Government. FHA home loans and VA home loans are backed by the U.S. government and are not Conforming nor are they Conventional loans.

What Types Of Conforming Loans Are There:

The most popular Conforming loans are the 30 year Fixed Rate Mortgage (FRM) loans and the 15 year fixed rate loan. Most homeowners or homebuyers go with either a 30 year or 15 year fixed rate program however there are many other options including:

  • 25 year fixed rate
  • 15 year fixed rate
  • 10 year fixed rate

There are no fixed rate options below a 10 year fixed rate. As for the Adjustable Rate Mortgages (ARM) under the Conforming loan program:

  • 5/1 Adjustable Rate Mortgage
  • 7/1 Adjustable Rate Mortgage
  • 10/1 Adjustable Rate Mortgage

The 10/1 ARM is the longest fixed rate period under the Conforming loan ARM program. All Adjustable Rate Mortgages are based on a 30 year time period. The first number (for example: 5/1) is the number of years the interest rate is fixed and the second number represents how ofter the rate adjusts after the fixed rate period. The fixed rate period is always at the beginning. So a 5/1 ARM:

  • For the first five years the interest rate is fixed and it does not change
  • For the first five years your payment does not change
  • After the first five years your rate adjusts once a year each and every year until year 30.
  • Your monthly payment adjust once a year after the fixed rate period.

Mortgage Pro-Tip About Mortgage Ads:

One of the most popular things in mortgage advertising is unscrupulous mortgage companies trying to make it seem like their advertised rate is a a 30 year fixed rate. It happens a lot and I wish it would stop because the average consumer can be easily tricked. If you are working with a mortgage company that does this we suggest you find a new mortgage company. If they can’t be straight forward with what their advertising how can you expect them to be straight forward with providing you a low rate mortgage?

Some of the wording you’ll see in these deceptive ads are:

  • “Low rate on a 30 year loan”
  • “Low fixed rate on a 30 year loan”
  • “Lock in a fixed rate on a 30 year loan”

All of the above may seem like a 30 year fixed rate loan to someone who is not in the mortgage industry or someone with limited to no experience buying a home however to an experience professional the wording is clearly designed to get the consumer to think they’re being offered a 30 year fixed rate but what actually is being offered is an ARM with a fixed rate period (since all Conforming ARMs are based on 30 years). Avoid these companies when looking for quotes.

Requirements For Conforming Loan:

A lot goes into getting qualified for a Conforming Loan and the actual guide issued by Fannie Mae is 1242 pages. We won’t go into everything; just the most important areas you should be aware of as of January 1, 2019:

  • The minimum down payment for a purchase is 3% down or the minimum amount of equity in a home for a refinance is 3%.
  • Generally speaking you need above a 620 credit score to obtain a Conforming loan. And getting qualified for scores below 700 gets more difficult as you move further down.
  • Debt-to-income ratio should be 45% or lower. Sometimes approvals can be obtained for those with debt-to-income ratios above 45%.
  • Most Conforming loans do not need liquid asset reserves however some do. If you are purchasing a rental property (or refinancing a rental property) you’ll need to show some liquid reserves. If you have a low credit score, a debt-to-income ratio above 45% and are taking cash out you’ll need to show some liquid reserves.

Is A Conforming Loan A Conventional Loan:

As mentioned above; a Conforming loan is a Conventional loan however not all Conventional loans are Conforming loans.

Family in front of their home

The Differences Between Conforming and FHA Loans:

We’ve touched on the main difference between the two programs (one conforms to Fannie Mae/Freddie Mac standards and the other is backed by the U.S. government) and here we’ll touch on the differences between the two loan programs at the consumer level:

  • Conforming loans are best for those with credit scores above 700
  • Conforming loans can be used to purchase or refinance investment properties
  • If you put down 20% or have 20% equity in your home then you will not have Mortgage Insurance with a Conforming loan
  • FHA loans are great for people with credit scores below 700
  • FHA loans help those with small down payments/little equity that might not get qualified under a Conforming loan program
  • With FHA loans you do not need liquid assets
  • FHA loans can only be used on primary homes; you can not purchase a rental property with a FHA loan.

Conforming Loans To Purchase A Home:

The Conforming loan program offers some great opportunities for those looking to purchase home. From First Time Home Buyers to seasoned investors; conforming loans have low interest rates at great terms. You can put down as little as 3% and the loan process for a Conforming loan is very efficient as it allows for 2-3 weeks closing periods if the buyer and seller are in a rush to close quick. Another great aspect of the Conforming loan program is that you might get an appraisal waiver which helps save on costs and if granted really speeds up the process.

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Conforming Loans To Refinance A Current Mortgage:

When it comes to refinancing a mortgage in California; the Conforming loan program is perhaps the most popular. Like purchases you can get an appraisal waiver and you can close fairly quickly due to every loan being underwritten by the AUS of Fannie Mae or Freddie Mac. If you really want things to move quickly be sure to have your income documentation, mortgage statement and homeowners insurance information ready to go before applying.

Is A Conforming Loan Right For You:

If you have a credit score above 700 and a debt-to-income ratio at 45% or lower than a Conforming loan might be right for you even if you only have 3% down or 3% equity (if you’re refinancing).