If you want to buy a home in California with a conventional mortgage, you will be pleased to learn that the conforming loan limits for 2020 throughout the state are higher than they were in 2019.
Walnut Creek is in Contra Costa County. These were the conforming loan limits in 2019 for Contra Costa County:
- 1 unit: $726,525
- 2 units: $930,300
- 3 units: $1,124,475
- 4 units: $1,397,400
In 2020, the Contra Costa County, CA loan limits are:
- 1 unit: $765,600
- 2 units: $980,325
- Three units: $1,184,925
- Four units: $1,472,550
These same loan limits apply to many other counties nearby, including Marin, San Mateo, Santa Cruz, Santa Clara, San Benito, Monterey, and Napa.
These are all high cost areas compared to most counties nationwide, where the conforming loan limits for 2020 are as follows:
- One unit: $510,400
- Two units: $653,550
- Three units: $789,950
- Four units: $981,700
These limits increased from those in 2019, and are also applicable to some parts of California.
With the limits raised for 2020, you can borrow more on a conventional loan than you could last year. For instance, if you wanted to borrow $730,000 in 2019 to purchase a home in Walnut Creek, a jumbo loan would’ve been necessary. But in 2020, you can get a conventional loan within the new limits for that amount.
With a conventional loan in Walnut Creek or elsewhere in California, you can enjoy these benefits:
- You have a wide selection of conventional lending products available to you with a range of interest rates, formats and terms.
- It is usually possible to close rapidly when necessary with a conventional loan since the process is simple and many lenders are well-versed in it.
- Your down payment could be as low as 3% if you have superior qualifications, which is even lower than the FHA loan down payment of 3.5%. And unlike with that type of loan, no private mortgage insurance (PMI) is required.
- Qualifying for a conventional loan in California is generally a faster and easier process than applying successfully for a jumbo loan, which requires two appraisals and a higher credit score and debt-to-income ratio if you want to qualify for comparable rates.
Apply for a Conventional Loan in Walnut Creek Now
If you are ready to apply for a competitive conventional mortgage in Walnut Creek or elsewhere in California, Bridgepoint Funding is here to make it happen. To schedule your consultation today, please give us a call at (925) 478-8630. We look forward to getting you into your California home with the mortgage which is right for you.