Contra Costa County Conforming Loan Limits vs. Jumbo Loans

At a glance: If you’re seeking a home loan in Contra Costa County for more than $625,500, you might have to use a jumbo mortgage product. The current (2016) conforming loan limit for Contra Costa County is $625,500, for a single-family home. Anything above that is considered jumbo.

Conforming Loan Limits for Contra Costa County

A conforming loan is one that meets (or “conforms”) to the underwriting guidelines used by Fannie Mae and Freddie Mac. These two organizations buy mortgage products from lenders, securitize them, and then sell them off to investors. All of this occurs in what’s known as the “secondary” mortgage market. The primary market is where loans are made to consumers.

Here are the 2016 conforming loan limits for Contra Costa County:

• 1-unit property: $625,500
• 2-unit property: $800,775
• 3-unit property: $967,950
• 4-unit property: $1,202,925

Notes: In this context, a “1 unit” property is a single-family home. A 2-unit property is a property with two residents, such as a duplex. And so on. If you’re buying a single-family home in Contra Costa County, then $625,500 is the limit that applies to you. Anything above that is considered a jumbo mortgage.

Did you know: VA loan limits in Contra Costa are the exact same as the conforming caps shown above, at least for 2016. The same goes or FHA. They were all aligned for 2016.

Jumbo Loans Exceed the Amounts Shown Above

When a home loan exceeds the size limits used by Fannie and Freddie, it is said to be “jumbo.”

According to the Federal Housing Finance Agency (FHFA), the 2016 conforming loan limit for a single-family home in Contra Costa County is $625,500. This means that anything above $625,500 within the county is considered a jumbo.

In July 2016, the California Association of Realtors reported that the median sales price for single-family homes in Contra Costa County was $625,000. That’s almost identical to the single-family loan limit for the county. This means that approximately half of all homes sold in July were priced above the conforming limit, while the other half were priced below it.

The Bottom Line, and Where to Learn More

If you’re looking for a mortgage loan in Contra Costa County for more than $625,500, you’ll probably fall into the jumbo category. This means you might be required to make a larger down payment, and the lender will likely examine your credit and debt situation more closely.

To learn more about jumbo mortgage loans, conforming limits, and similar topics, you can refer to the Federal Housing Finance Agency’s website at FHFA.gov.

If you would like to get a rate quote for a loan, please use our online rate quote tool or contact a member of our staff. We look forward to helping you!