subject: California Mortgage Loan Limits [print this page] Many areas in the country with high costs of living, such as many places in California, will be staying the same through the next fiscal year. This means that conforming loan limits in California will rest at $729,750 in the most costly areas. This extension of 2011 California loan limits is the same for California FHA limits. Originally, these loan limits were set to expire at the end of 2010, but now the plan is for these high California mortgage limits to extend into the following year. Before President Obama signed his resolution on September 30, 2010, these rates were set to decrease by 40-50% in 2011.
The conforming loan limits in California determine the largest possible amount you can get from a California mortgage lender. Non-conforming loans are commonly called jumbo loans. These tend to carry higher interest rates than their conforming counterparts. This increases the amount the borrowers pay each month and make moving into a home a financial impossibility for many families. Fortunately, 2011 California loan limits will stay at their heightened level to help you and your family members make their way into a new home with the help of a California mortgage lender.
To understand California FHA limits, you cannot simply assume that since $729,750 is the very highest of the California mortgage limits that you will be approved for this amount. The first item that you must take into consideration is that a California mortgage lender will give out loans based on the maximum levels set in your county. If you live in San Joaquin County, the most you can be approved for is $271, 050 and this includes amounts for 2011 California loan limits. The highest of the California mortgage limits that of $729,750 can be obtained in Alameda, Marin, Stanislaus, and Yolo counties only. All other counties have varying California FHA limits and conforming loan limits in California between these two monetary amounts.
Another fact you must realize is that your credit must be good enough to be approved for the maximum California mortgage limits. You can expect to have a good chance of qualifying for the highest of the California FHA limits if you have a credit score of at least 620 and a debt-to-income ratio of less than 41%. While there are other criteria to be approved by a California mortgage lender in the amount you want to borrow, these are the basics.
