2022 Conforming Loan Limits In California
What You Need to Know About the Current Loan Limits in California
Interest rates on most loans are still at (or near) historic lows. If you need a home loan, auto loan, or student loan in California, it’s likely that you can get it for less than 5% APR right now. But there are some limits to how much you can borrow. The limits vary depending on the type of loan and your financial situation.
Here is what you need to know about current 2022 conforming loan limits in California.
What are conforming loan limits?
There are limits on how much you can borrow and these limits vary depending on the type of loan and your financial situation. These limits are called loan limits.
The good news is that recently, the Federal Housing Finance Agency raised the 2022 Conforming Loan Limits in California and cities such as Los Angeles, San Diego, Orange County, so loans that were previously labeled as “Jumbo” may fall into other categories. Depending on where you live, it could be as high as $970,800.
Loan limits depend on the borrower’s income and assets, as well as the type of loan they are seeking. For people with substantial assets, they may need to take out a mortgage loan insured by the Federal Housing Administration (FHA).
The current loan limits for a variety of loans in California
California has one of the most competitive lending markets in the country. There are also a lot of loan options. The most common types of conforming loans in California and biggest cities such as Los Angeles, San Francisco, Orange, San Diego are those that you may have already heard of, like 15 and 30 year mortgage loans.
The only thing you need to think about before applying for a loan is choosing what type of loan you want and how much you plan on borrowing. Keep in mind that not all loans are available for everyone.
|State Code||County Code||County||State||One-Unit
|06||001||ALAMEDA COUNTY||CA||$ 970 800||$ 1 243 050||$ 1 502 475||$ 1 867 275|
|06||019||FRESNO COUNTY||CA||$ 647 200||$ 828 700||$ 1 001 650||$ 1 244 850|
|06||037||LOS ANGELES COUNTY||CA||$ 970 800||$ 1 243 050||$ 1 502 475||$ 1 867 275|
|06||053||MONTEREY COUNTY||CA||$ 854 450||$ 1 093 850||$ 1 322 200||$ 1 643 200|
|06||059||ORANGE COUNTY||CA||$ 970 800||$ 1 243 050||$ 1 502 475||$ 1 867 275|
|06||065||RIVERSIDE COUNTY||CA||$ 647 200||$ 828 700||$ 1 001 650||$ 1 244 850|
|06||067||SACRAMENTO COUNTY||CA||$ 675 050||$ 864 200||$ 1 044 600||$ 1 298 200|
|06||071||SAN BERNARDINO COUNTY||CA||$ 647 200||$ 828 700||$ 1 001 650||$ 1 244 850|
|06||073||SAN DIEGO COUNTY||CA||$ 879 750||$ 1 126 250||$ 1 361 350||$ 1 691 850|
|06||075||SAN FRANCISCO COUNTY||CA||$ 970 800||$ 1 243 050||$ 1 502 475||$ 1 867 275|
|06||079||SAN LUIS OBISPO COUNTY||CA||$ 805 000||$ 1 030 550||$ 1 245 700||$ 1 548 100|
|06||083||SANTA BARBARA COUNTY||CA||$ 783 150||$ 1 002 600||$ 1 211 900||$ 1 506 100|
|06||085||SANTA CLARA COUNTY||CA||$ 970 800||$ 1 243 050||$ 1 502 475||$ 1 867 275|
|06||111||VENTURA COUNTY||CA||$ 851 000||$ 1 089 450||$ 1 316 900||$ 1 636 550|
Watch out for this common trick
In trying to find a low mortgage loan rate, you may often hear unscrupulous lenders say things like “Lock in your rate on a low 30-year loan” or “low fixed rate on a 30 year loan”.
Notice they don’t specifically say “low 30 year fixed-rate loan”. Because an ARM can also be a 30-year loan and they’re taking advantage of you falling for the potentially higher prices without realizing it.
How To Know What Your Limit Is
The California loan limits for each loan type are different. The limits will depend on your financial situation. If you’re looking for a home loan, for example, the limits will depend on your FICO score and how much you’ve saved up for a down payment.
If you want to know what your limit is now, it’s important to work with an experienced loan professional who can help determine what your limit might be. A mortgage broker or banker can help you figure out what type of home loan is best suited to your unique needs and then help you find one that matches those needs. As we fully licensed in Florida, you can see and compare 2022 conforming loan limits in Florida as well.
How to Qualify for a Conforming Loan
As of January 2022, the qualifications are as follows:
- 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.
- The debt-to-income ratio should be 50% or lower.
- 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.
Keep in mind that conventional loans are considered conforming loans, but not all conforming loans are conventional loans. It can be difficult to make sense of, which is why it’s so important to work with a lender you can trust!
To learn more and to find out if you qualify, contact the experts at LBC Mortgage today! We’ll work with you to help you better understand everything you need to know about 2022 Conforming Loan Limits in California and work with you to find the best possible loan for your needs! Reach out to us today to learn more!