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Contra Costa County Loan Limits 2022: Another Year, Another Increase

Home prices in Contra Costa County, California have skyrocketed over the past year or so. As a result, federal housing officials have increased the conforming loan limits for Contra Costa. In 2022, the new conforming loan limit for a single-family property will go up to $970,800.

Here are the limits for all California counties.

Borrowers with sufficient income and/or assets could borrow more than this amount, but it would be considered a jumbo mortgage.

Read on to learn more about the 2022 conforming loan limits for Contra Costa County, and how they affect you as a borrower.

Contra Costa County Loan Limits for 2022

On November 30, the Federal Housing Finance Agency announced the revised limits for conforming loans. These are loans that can be sold to Fannie Mae and Freddie Mac through the secondary mortgage market. They “conform” to the size restrictions used by those two organizations, hence the term.

Here are the 2022 conforming loan limits for Contra Costa County:

  • One-unit property: $970,800
  • Two-unit property: $1,243,050
  • Three-unit unit: $1,502,475
  • Four-unit unit: $1,867,275
Need a bigger loan? We offer financing above these limits, for qualified borrowers. Please contact us if you have mortgage-related questions. We are located right here in Contra Costa County!

A Response to Rapidly Rising Home Values

Home prices in Contra Costa County have risen substantially in the past year or so. According to Zillow, the median or typical home value in the area rose by more than 20% in the last 12 months alone (as of November 2021). The median price climbed above $900,000 earlier this year, and for the first time ever.

This is the number-one reason why housing officials have increased the 2022 conforming loan limits for Contra Costa County and across the Bay Area.

This brings good news for home buyers in the area. Basically, it means you have a higher level of financing to work with, when purchasing a house. Using a conventional home loan in 2022, you could borrow up to $970,800 without crossing into “jumbo” mortgage territory.

It bears repeating: People who need to borrow more than the conforming loan limit for Contra Costa County can do so, as long as they have the income to support it. So it might be more accurate to think of these limits as a “threshold” that separates one loan product from another (in this case, conforming vs. jumbo).

Given the relatively expensive nature of the Contra Costa County real estate market, mortgage loans in excess of $1 million are fairly common. The main requirement is that the borrower has the ability to repay the debt, based on their current income and asset situation.

Conforming Loans: Frequently Asked Questions

Loan limits can be a confusing topic, especially if you’re a first-time home buyer with no previous mortgage experience. The subject tends to generate a lot of questions from borrowers. Below, we have answered some of the most common questions.

Who determines the conforming loan limits?

The Federal Housing Finance Agency (FHFA) oversees the mortgage buyers Freddie Mac and Fannie Mae. Fannie and Freddie are corporations, not government entities. But they do receive government support and therefore have to abide by certain guidelines established by the government.

Loan limits are one of those guidelines.

The FHFA determines the maximum size for mortgages that can be sold to Fannie Mae and Freddie Mac. When a loan falls within these size parameters (and other criteria), it is referred to as conforming.

The FHFA sets the conforming loan limits for Contra Costa County and all other counties across the country. In doing so, they also create a threshold above which borrowers cross into the jumbo mortgage range.

Are jumbo mortgages harder to qualify for?

Because of the larger amount being loaned out, jumbo loans in Contra Costa County often get a closer look from the lenders and banks that offer them.

Generally speaking, borrowers who apply for a jumbo mortgage (above the conforming loan limit) need to have solid credit and a manageable level of debt. They must also have enough income / assets to manage the monthly payments, along with other recurring debts like credit cards, car payments, etc.

The federal government establishes the conforming loan limits for Contra Costa County. But it’s up to the lender to determine how much a person is qualified to borrow. This is true for conforming and jumbo mortgage products alike.

Will the limits go up again in 2023?

It’s too early to say. If home prices in the Bay Area continue to climb as they have over the past year or so, we could see another increase in Contra Costa County loan limits in 2023.

This has been the case for several years running. Housing officials have increased the conforming loan limits every year, for some time now. So it could happen again in 2023.

The important point is that the limits shown above will remain in effect for the full calendar year of 2022. Beyond that, we just don’t know.

We Are Your Local Mortgage Company

Bridgepoint Funding has been operating in Contra Costa County for well over a decade. We serve the entire Bay Area and offer a broad range of financing products, including both conforming and jumbo loans.

Our broker-based business model allows us to match clients with the best mortgage product for their particular needs. Please contact us if you have financing-related questions, or if you’d like to apply for a loan.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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