2019 Loan Limits
2019 Loan Limits
Conventional Mortgage Loan Limits For 2019 In California
If you are looking to purchase a home in California, it is important to be aware of the conventional mortgage loan limits for 2019, which are are the maximum amount borrowers can receive to finance home purchases through a lender that receives federal protection for the money being lent.
2019 MORTGAGE LOAN LIMITS FOR CONVENTIONAL, FHA, & VA LOANS
Mortgage loan limits for every Californian county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)
This does not mean borrowers looking for luxury homes have no options, as jumbo loans are currently very popular in San Diego and statewide. However, lenders dealing in jumbo loans lose the federal protections. In order to help you learn about the loan limits of each federally-backed lender, let’s take a look at the conventional mortgage loan limits for 2019 in California…
2019 Fannie Mae Loan Limits in California
Fannie Mae and its counterpart, Freddie Mac, are two of the most well-known federally-backed mortgage buyers in the United States.
These two organizations…
- Are autonomous companies
- Were established by the federal government to help regulate and boost the housing market
- Provide financing for mortgage lenders ranging from large commercial companies to smaller banks
In November of 2018, the Federal Housing Finance Agency (FHFA) announced an increase in the 2019 Fannie Mae loan limits in California. Fannie Mae and Freddie Mac loan limits in 2019 rose to $484,350 for a single-unit family home, an increase of $31,250 from the previous calendar year.
- Because California is considered a high-cost area, the 2019 Fannie Mae loan limits in California for a single-unit family home is now $726,525 (in the most expensive counties), which is 150% of the general mortgage limit for normal-cost areas.
This means lenders and borrowers can remain within the Fannie Mae and Freddie Mac loan limits in 2019 while receiving up to $726,525 for a home purchase. Of course, this figure represents the highest amount possible, and not necessarily the amount every borrower will qualify for. We welcome you to contact us so we can discuss your individual situation and qualification limits.
2019 FHA Loan Limits in California
The Federal Housing Administration (FHA) sets standards for construction and underwriting, and it also insures loans made by private lenders and banks for construction. FHA loan rates tend to be lower because of this insurance, and the FHA supports 203k loans.
Just like Fannie Mae and Freddie Mac, the 2019 FHA loan limits in California have increased. The 2019 FHA loan limits in California vary by county, but home buyers in San Diego County (including the greater San Diego and Carlsbad areas) can receive up to $690,000 dollars toward the purchase of a single-unit family home. Please click here to see a comprehensive list of maximum mortgage loan amounts.
2019 VA Home Loan Limits in California
The Department of Veterans Affairs (VA) provides patient care and federal benefits to veterans and their dependents. For those who qualify, VA home loans are extremely popular because of the generous terms granted to former and current service members, and VA loan rates are usually low.
- To learn more about the VA’s requirements, please click here.
The 2019 VA home loan limits in California have also increased from the previous year. This increase is the same amount the FHFA authorized for Fannie Mae and Freddie Mac, or $484,350 (up from $453,100 in 2018).
Along these lines, 2019 VA home loan limits in California reflect the FHFAs designation of the Golden State as a high-cost area. This means borrowers in San Diego can receive up to $690,000 toward a single-unit family home purchase.
2019 VA home loan limits in California are based on county.
Getting a Jumbo Loan in California
A jumbo loan is a mortgage higher than the conforming limits set by the FHFA for Fannie Mae-Freddie Mac, FHA and the VA loans. But like FHFA secured loans, jumbo loan limits vary based on location and dwelling type (so single-unit, multi-unit, etc.) You can sometimes use jumbo loans for income property as well.
A lack of government guarantee means a mortgage lender offering a jumbo loan in California can set requirements that differ from other jumbo loan lenders, as well as from the conventional mortgage lenders we have discussed. However, some of the more typical requirements to get a jumbo loan in California include:
- A 20% down payment for the best interest rates
- A FICO score of at least 700 to get good interest rates and terms
- A debt to income ratio of around 38-50%
- A $2 million loan ceiling (with 3 million dollars possible on a case-by-case basis)
- Mandatory mortgage insurance on loan-to-value (LTV) above 85% to 90%
This list is very general and not exhaustive. We welcome you to contact us to discuss your specific goals and learn more about jumbo-loan options.
Home & Mortgage is Here to Help
At Home & Mortgage, our mission is to help educate our clients so they can make informed, responsible decisions throughout the home-buying process. We want to help you get the best possible rates, terms and conditions on federally-backed conventional, as well as jumbo mortgage loans that help your home-buying dreams become reality.