Learn All About the 2024 California Conforming Loan Limits for Various Property Types. Call Sammamish Mortgage Today for a Personalized Quote! 90001
This page includes the 2024 conforming loan limits for all California State counties, with some additional commentary about how and why these caps are set. Home loans that exceed the maximum amounts shown below are considered “jumbo” mortgages.
At a glance: The current single-family conforming loan limit for most counties in California State is $766,500 (an increase over the 2023 cap of $726,200). In the more expensive California-area counties of LOS ANGELES, CONTRA COSTA, ORANGE , the single-family loan limit has been increased to $1,149,825 for 2024.
California conforming loan limits determine the maximum loan amount that can be acquired for a mortgage loan to be eligible for sale to Fannie Mae or Freddie Mac. These limits are set annually and vary by county, so it’s important for homebuyers to understand how they work before applying for a mortgage.
What are Conforming Loans?
Conforming loans are mortgages that meet the underwriting guidelines set by Fannie Mae and Freddie Mac This includes limits on loan amounts, borrower eligibility, debt-to-income ratios, and other factors Loans that fall within these conforming loan limits can be sold to Fannie Mae and Freddie Mac on the secondary mortgage market. This makes them widely available and often have lower interest rates compared to jumbo or non-conforming loans that exceed the limits.
How Are Conforming Loan Limits Determined?
The Federal Housing Finance Agency (FHFA) sets maximum conforming loan limits each year for every U.S. county and metropolitan area. There are two main loan limits:
-
Baseline Loan Limit – The standard limit for most low to moderate cost areas
-
High-Cost Area Limit – A higher limit for designated high cost real estate markets like San Francisco.
For 2024, the baseline conforming limit for a single-family home is $766,550 in most California counties The high-cost limit in pricier areas like San Francisco and Los Angeles is $1,149,825 for a single-family home Keep in mind these apply to first mortgages only.
Conforming Loan Limits By County
While FHFA sets the baseline and high-cost conforming loan limits each year, the actual limit can vary widely across California’s counties. Here are the 2024 conforming loan limits for some of the most populous counties:
- Los Angeles County – $1,149,825
- San Diego County – $1,006,250
- Orange County – $1,149,825
- Santa Clara County – $1,149,825
- Alameda County – $1,149,825
- Sacramento County – $766,550
As you can see, limits range from the baseline amount to the high-cost maximum depending on the real estate values and demand in that county.
Factors That Determine County Loan Limits
What factors decide whether a county gets the baseline conforming limit versus the high-cost maximum? Here are some of the criteria used:
- Median home prices and affordability
- Housing supply and demand
- Income levels relative to real estate costs
- Urbanization and population density
Counties with very high median prices, low supply, and greater affordability challenges like San Francisco tend to qualify for the increased high-cost conforming loan limits. More rural and moderately priced markets stick to the standard baseline amounts.
Conforming Loan Limit Differences by Number of Units
The conforming loan limits also increase incrementally for properties with 2, 3 or 4 units compared to a single-family home. Here’s how 2024 conforming loan limits scale up by number of units in most California counties:
- Single Family Home – $766,550
- 2-Unit Property – $981,500
- 3-Unit Property – $1,186,350
- 4-Unit Property – $1,474,400
So you can potentially qualify for a larger conforming mortgage when purchasing a multi-unit dwelling in California.
Non-Conforming or Jumbo Loan Options
If you need to borrow more than the conforming limit for your county, you may still have options through a non-conforming or jumbo loan. These mortgages exceed the limits but come with some key trade-offs:
-
Higher interest rates and fees – Usually 0.25% to 0.5% higher
-
Stricter borrowing requirements – Excellent credit and higher down payment needed
-
Less availability – Not always offered by every lender
Jumbo loans are ideal for affluent buyers purchasing more expensive homes above $1 million. But they require strong finances and you’ll pay more in interest over the long run.
Shopping with Conforming Loan Limits in Mind
The key takeaway is to find out your county’s applicable conforming loan limit before shopping for a mortgage or home. This allows you to tailor your search to properties that align with your borrowing power under the limits. Exceeding them means having to qualify for a jumbo loan or make a larger down payment. But homes priced within your county limit create more financing flexibility.
Conforming loan limits vary widely across California counties and can change annually. So be sure to research the latest limits when initially planning your home purchase or refinance. This ensures you find the optimal property and loan amount to fit your budget and financial situation. With the right conforming mortgage, you can achieve an affordable monthly payment and favorable long term interest rate.
How These Limits Are Set
California State conforming loan limits are determined by the Federal Housing Finance Agency (FHFA). The Housing and Economic Recovery Act of 2008 (HERA) requires the FHFA to monitor and track average home prices in the U.S., and to annually adjust the baseline jumbo loan limit as needed to reflect changes in national home values.
In other words, if prices go up considerably in a certain county, FHFA may increase the corresponding loan limits to keep pace with rising home values. That’s what happened from 2022 to 2023. Conforming limits are usually set at 115% of the median home price for each area, though they can exceed this level in some high-cost areas.
The 2024 conforming limit for most counties in California State is $766,500. The three exceptions to this baseline amount are King, Pierce, Snohomish counties. (See the table above for county-by-county details.)
In recent years, FHFA has used the median home values estimated by the Federal Housing Administration (FHA), which is part of HUD. So there are several federal housing agencies involved in determining loan limits.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Why They Were Increased for 2024
We predicted that federal housing officials would increase the Seattle jumbo loan threshold in response to significant home-price gains that occurred during the year. That prediction turned out to be accurate. In fact, the FHFA raised limits across most of the country.
So, the vast majority of counties across the U.S. will see higher caps in 2024, compared to 2023. Home prices nationally rose by an average of around 4% during 2023. In California, the median house value rose by around 5.7%. That is why we are seeing higher California State conforming loan limits in 2024.
2024 Conventional Loan Limits Explained, A Good Omen for the Economy
FAQ
What is the conforming loan limit in California 2024?
What is the maximum loan amount in California?
What is the jumbo loan limit for 2024?
How much is a Jumbo loan in California?
What is the California conforming loan limit?
The California conforming loan limit in 2016 was $417,000 (the same as in 2015), and in some high-cost counties, like San Francisco County, it was as high as $625,500 ( source ). The California conforming loan limit in 2017 was $424,100; in some high-cost counties, like Alameda County, it was as high as $636,150 ( source ).
How much is a conforming loan in California 2022?
2022 conforming loan limits for California is $647,200 and goes up to $970,800 for high-cost counties (aka. high balance mortgage loans) for one-unit properties. Every year Fannie Mae & Freddie Mac, FHA, and the VA revise their California county maximum mortgage limits.
What is a conforming loan?
A conforming loan is a conventional home loan that “conforms” to the loan limits established by the Federal Housing Finance Agency and the underwriting guidelines of Fannie Mae and Freddie Mac. Here are the 2024 California conforming loan limits for all 58 counties.
What is a conforming loan limit?
The Federal Housing Finance Agency (FHFA) publishes annual conforming loan limit values that apply to all conventional loans delivered to Fannie Mae. These include baseline and high-cost area loan limits; high-cost areas vary by geographic location.
What are the 2024 loan limits in California?
2024 Loan limits in California by county. Click on the map below to view loan limits for a particular county. California has 58 counties, with conforming loan limits for a single-family home ranging from $766,550 in Alpine County to $1,149,825 in Alameda County .
What is a conforming limit in California?
Conforming limits are usually set at 115% of the median home price for each area, though they can exceed this level in some high-cost areas. The 2024 conforming limit for most counties in California State is $766,500. The three exceptions to this baseline amount are King, Pierce, Snohomish counties.