IE Business Daily Business news for the Inland Empire.
The government designated 208 high-cost areas across the nation including areas of California as high-cost areas in which the conforming loan limit is raised to $625,500 for most single family residence.
For the ninth consecutive year jumbo loan limits in California remain unchanged and range between $417,000 and $625,500 depending on the county of the property. Alameda County, for example, has a jumbo loan limit of $625,500 whereas in San Bernardino County the Jumbo Loan Limit sits at the lower level of $417,000.
The discrepancy of jumbo loan limits in California by county reflect the differences in median income, education, and of course cost-of-living. Jumbo loans make it accessible for a borrower to purchase a high-priced home in a luxury market, although there are stricter requirements to qualify for a jumbo loan which buyers should be aware of including:
• Debt-to-income ratio no higher than 43% – the monthly house payment can’t exceed 43% of pretax income;
• FICO credit score of at least 720;
• Down payment of at least 20 percent;
• Proof of income and cash reserves of six – 18 months of mortgage payments, including taxes and fees.
Jumbo loan requirements also commonly extend beyond the borrower’s ability to repay the loan. Lenders prefer that luxury homebuyers have larger reserves in case the property goes into foreclosure.
The location of the residence is also a factor when it comes to lending requirements. For example a piece of property in Manhattan Beach, California may be viewed differently than a similarly priced property in a harder-to-sell, rural area.
The 2014 Conforming Loan Limits for California Counties are as Follows for a single family residence:
Alameda County, California Jumbo Loan Limit $625,500
Alpine County, California Jumbo Loan Limit $463,450
Amador County, California Jumbo Loan Limit $417,000
Butte County, California Jumbo Loan Limit $417,000
Calaveras County, California Jumbo Loan Limit $417,000
Colusa County, California Jumbo Loan Limit $417,000
Contra Costa County, California Jumbo Loan Limit $625,500
Del Norte County, California Jumbo Loan Limit $417,000
El Dorado County, California Jumbo Loan Limit $474,950
Fresno County, California Jumbo Loan Limit $417,000
Glenn County, California Jumbo Loan Limit $417,000
Humboldt County, California Jumbo Loan Limit $417,000
Imperial County, California Jumbo Loan Limit $417,000
Inyo County, California Jumbo Loan Limit $417,000
Kern County, California Jumbo Loan Limit $417,000
Kings County, California Jumbo Loan Limit $417,000
Lake County, California Jumbo Loan Limit $417,000
Lassen County, California Jumbo Loan Limit $417,000
Los Angeles County, California Jumbo Loan Limit $625,500
Madera County, California Jumbo Loan Limit $417,000
Marin County, California Jumbo Loan Limit $625,500
Mariposa County, California Jumbo Loan Limit $417,000
Mendocino County, California Jumbo Loan Limit $417,000
Merced County, California Jumbo Loan Limit $417,000
Modoc County, California Jumbo Loan Limit $417,000
Mono County, California Jumbo Loan Limit $529,000
Monterey County, California Jumbo Loan Limit $483,000
Napa County, California Jumbo Loan Limit $592,250
Nevada County, California Jumbo Loan Limit $477,250
Orange County, California Jumbo Loan Limit $625,500
Placer County, California Jumbo Loan Limit $474,950
Plumas County, California Jumbo Loan Limit $417,000
Riverside County, California Jumbo Loan Limit $417,000
Sacramento County, California Jumbo Loan Limit $474,950
San Benito County, California Jumbo Loan Limit $625,500
San Bernardino County, California Jumbo Loan Limit $417,000
San Diego County, California Jumbo Loan Limit $546,250
San Francisco County, California Jumbo Loan Limit $625,500
San Joaquin County, California Jumbo Loan Limit $417,000
San Luis Obispo County, California Jumbo Loan Limit $561,200
San Mateo County, California Jumbo Loan Limit $625,500
Santa Barbara County, California Jumbo Loan Limit $625,500
Santa Clara County, California Jumbo Loan Limit $625,500
Santa Cruz County, California Jumbo Loan Limit $625,500
Shasta County, California Jumbo Loan Limit $417,000
Sierra County, California Jumbo Loan Limit $417,000
Siskiyou County, California Jumbo Loan Limit $417,000
Solano County, California Jumbo Loan Limit $417,000
Sonoma County, California Jumbo Loan Limit $520,950
Stanislaus County, California Jumbo Loan Limit $417,000
Sutter County, California Jumbo Loan Limit $417,000
Tehama County, California Jumbo Loan Limit $417,000
Trinity County, California Jumbo Loan Limit $417,000
Tulare County, California Jumbo Loan Limit $417,000
Tuolumne County, California Jumbo Loan Limit $417,000
Ventura County, California Jumbo Loan Limit $598,000
Yolo County, California Jumbo Loan Limit $474,950
Yuba County, California Jumbo Loan Limit $417,000
For more information on jumbo loan limits in California or to determine whether a jumbo loan is right for you, give one of our lending experts here at Wholesale Capital Corporation a call at 844-571-2777.
