California Conforming and FHA Loan Limits for 2011

Conforming mortgages in California are appropriately named because they conform to the mortgage guidelines set forth by Fannie Mae and Freddie Mac.

Of the many traits of a conforming mortgage, one is “loan size” and loan sizes have limits. Mortgages exceeding this loan size limit cannot be securitized as a conforming mortgage and, therefore, are ineligible for conforming mortgage rates.

— 11/17/2011 — UPDATE to the UPDATE #2 — Congress just flip flopped and changed the California 2012 – 2013 FHA conforming / jumbo loan limits again.  See max loan limits by county for FHA and conventional financing.  

— 12/20/2011 — VA Loan Update — Dept. of Veterans Affairs just reduced the 2012 VA County Loan Limits.  See how you can still borrow more than the VA limit!

All things equal, conforming mortgage rates are often the cheapest source of mortgage money for residents of Temecula, Murrieta, Menifee, Corona, Riverside, Ontario, Chino, Norco, Rancho Cucamonga and all of the Inland Empire cities.

Each year, the government re-evaluates its maximum allowable loan size based on “typical” housing costs nationwide. Loans in excess of this amount are often called “jumbo”.

Between 1980 and 2006, as home prices increased, so did conforming loan limits — from $93,750 to $417,000.  Since 2006, however, home prices have retreated but the conforming loan limit has not.

Despite the limits, some parts of the country get “loan limit exceptions”. In areas considered “high cost”, like California, conforming loan limits range from $417,001 to $729,750. High-cost is defined by the median sales price of a region.  Here are the conforming loan limits for all counties in California:

Conforming Loan Limits vary by property type (number of units).  Call me for details (951) 215-6119.

When a  loan amount is between $417,000 and $729,750, this is referred to as a an Agency Jumbo or a Conforming Jumbo, there can be more restrictive qualifying guidelines are additional ‘pricing’ hits from Fannie Mae and Freddie Mac that can cause the loan to be either more expensive or the rate higher.  If your loan amount is larger than the max limit, you have a true Jumbo loan that requires private financing.  Call me if you need more info on qualifying for a true Jumbo loan.

You can verify your local market’s loan limit via the Fannie Mae website. A complete county-by-county list is published online.

If you want a mortgage interest rate quote or want to discuss qualifying for a home purchase loan, call me at (951) 215-6119 or email me brad(at)homeloanartist(dot)com.