Conventional Loan Limits in California: A Detailed Guide for 2024

Conventional loans are a popular mortgage option for many homebuyers in California. One key factor that determines if a loan can be classified as conventional is whether it falls within the conforming loan limits set by the Federal Housing Finance Agency (FHFA) each year. These limits dictate the maximum loan amount that can be considered a conventional conforming loan.

Understanding the conforming loan limits for your county in California is important to determine if a conventional loan makes sense for your specific home purchase. In this comprehensive guide, we’ll break down everything you need to know about conventional loan limits in California for 2024.

What Are Conventional Conforming Loan Limits?

Conventional conforming loan limits are maximum mortgage amounts established each year by the FHFA for Fannie Mae and Freddie Mac loans. Loans that fall at or under these limits are considered conforming loans. Here are some key things to understand:

• The limits vary by county and are based on median home values in each area Higher cost counties have higher limits.

• Loans above the conforming loan limits are called non-conforming or jumbo loans and often have stricter requirements

• The conventional conforming loan limits typically increase slightly each year. FHFA calculates the annual increases based on changes in median home prices nationwide.

• There are different limits for 1-unit, 2-unit, 3-unit, and 4-unit properties. Limits increase for multi-unit buildings.

Conforming to these loan limits allows lenders to easily sell conventional loans to Fannie Mae and Freddie Mac on the secondary mortgage market. This gives borrowers access to better interest rates and terms. That’s why staying within your county’s limits is ideal if possible.

2024 Conventional Loan Limits for California Counties

The FHFA has established the following conforming loan limits for California counties in 2024:

1-Unit Properties:

• Standard Limit $766,550

• High-Cost Limit: Up to $1,149,825

2-Unit Properties:

• Limit: Up to $1,472,250

3-Unit Properties:

• Limit: Up to $1,779,525

4-Unit Properties:

• Limit: Up to $2,211,600

Here is a breakdown of the 2024 1-unit conforming loan limits for all counties in California:

• Alameda County: $1,149,825
• Alpine County: $766,550
• Amador County: $766,550
• Butte County: $766,550
• Calaveras County: $766,550
• Colusa County: $766,550
• Contra Costa County: $1,149,825
• Del Norte County: $766,550
• El Dorado County: $766,550
• Fresno County: $766,550
• Glenn County: $766,550
• Humboldt County: $766,550
• Imperial County: $766,550
• Inyo County: $766,550
• Kern County: $766,550
• Kings County: $766,550
• Lake County: $766,550
• Lassen County: $766,550
• Los Angeles County: $1,149,825
• Madera County: $766,550
• Marin County: $1,149,825
• Mariposa County: $766,550
• Mendocino County: $766,550
• Merced County: $766,550
• Modoc County: $766,550
• Mono County: $766,550
• Monterey County: $920,000
• Napa County: $1,017,750
• Nevada County: $766,550
• Orange County: $1,149,825
• Placer County: $766,550
• Plumas County: $766,550
• Riverside County: $766,550
• Sacramento County: $766,550
• San Benito County: $1,149,825
• San Bernardino County: $766,550
• San Diego County: $1,006,250
• San Francisco County: $1,149,825
• San Joaquin County: $766,550
• San Luis Obispo County: $929,200
• San Mateo County: $1,149,825
• Santa Barbara County: $838,350
• Santa Clara County: $1,149,825
• Santa Cruz County: $1,149,825
• Shasta County: $766,550
• Sierra County: $766,550
• Siskiyou County: $766,550
• Solano County: $766,550
• Sonoma County: $877,450
• Stanislaus County: $766,550
• Sutter County: $766,550
• Tehama County: $766,550
• Trinity County: $766,550
• Tulare County: $766,550
• Tuolumne County: $766,550
• Ventura County: $954,500
• Yolo County: $766,550
• Yuba County: $766,550

As you can see, limits range from the standard $766,550 up to $1,149,825 for high cost counties like San Francisco and Los Angeles. Always verify your specific county limit when considering a conventional loan.

How Conforming Loan Limits Have Changed in California

The FHFA typically increases conforming loan limits slightly each year based on nationwide home price appreciation. Here is an overview of how California’s conforming loan limits have changed over the past several years:

2015:

• Standard Limit: $417,000
• High-Cost Limit: Up to $625,500

2016:

• Standard Limit: $417,000
• High-Cost Limit: Up to $625,500

2017:

• Standard Limit: $424,100
• High-Cost Limit: Up to $636,150

2018:

• Standard Limit: $453,100
• High-Cost Limit: Up to $679,650

2019:

• Standard Limit: $484,350
• High-Cost Limit: Up to $726,525

2020:

• Standard Limit: $510,400
• High-Cost Limit: Up to $765,600

2021:

• Standard Limit: $548,250
• High-Cost Limit: Up to $822,375

2022:

• Standard Limit: $647,200
• High-Cost Limit: Up to $970,800

2023:

• Standard Limit: $726,200
• High-Cost Limit: Up to $1,089,300

2024:

• Standard Limit: $766,550
• High-Cost Limit: Up to $1,149,825

As you can see, the conforming loan limits have increased steadily each year, providing more buying power for homebuyers seeking conventional financing.

Loan Requirements for Conventional Conforming Loans

In addition to loan limits, there are various credit and underwriting requirements borrowers must meet to qualify for a conventional conforming loan:

• Credit Score: Most conventional loans require a minimum credit score of 620, but scores of at least 720 are ideal to get the best rates and terms. The higher your score, the better.

• Down Payment: At least 3% down payment is required on conventional loans. 20% down provides the best rates/fees.

• Debt-to-Income Ratio: Your total monthly debt divided by gross monthly income should be below 45%. The lower, the better.

• Loan-to-Value Ratio: The loan amount divided by the home’s value. Conventional loans allow up to 97% LTV. Lower LTVs get better rates.

• Reserves: Most conventional loans don’t require liquid asset reserves, but additional reserves help strengthen your application.

• Property Type: Single-family homes, condos, townhomes, and 2-4 unit properties are eligible. Manufactured and mobile homes often don’t qualify.

Always discuss your specific financial situation with a lender to confirm you meet the requirements for a conventional conforming loan. Having a down payment of 20% or more and a credit score above 740 will ensure you get the very best rates/fees.

Benefits of Conventional Conforming Loans

Assuming you can qualify, there are great benefits to keeping your loan within the conventional conforming limits:

Lower Interest Rates – Conforming loans often have the lowest rates available because they are easily sold on secondary market. Rates increase for jumbos.

Lower Mortgage Insurance – Private MI on a conforming loan has lower monthly premiums than government-backed loans like FHA.

No Prepayment Penalties – Conventional loans can be refinanced or paid off early with no extra fees or penalties.

Flexible Qualifying – Conventional loans can use bank statement income, offer down payment gifts, and have flexible credit guidelines