Alameda County Conforming Loan Limits and Jumbo Range for 2021

Another year, another increase in the conforming loan limits for Alameda County (and most of California). Toward the end of 2020, federal housing officials announced they would be raising these limits in response to rising home values across the U.S.

In 2021, the maximum conforming loan limit for Alameda County went up to $822,375. That’s for a single-family home purchase. Anything above that amount would be considered a jumbo mortgage loan in Alameda County, by 2021 standards.

Related: Jumbo threshold increased for Bay Area

Conforming vs. Jumbo Loans in Alameda County

Conventional mortgage loans (those that are not insured by the federal government) can be categorized in two ways, depending on their size:

• If the loan meets the size restrictions used by Fannie Mae and Freddie Mac, it’s considered to be a conforming loan. It “conforms” to the criteria mentioned above.
• On the other hand, a home loan that exceeds the conforming limits used by Freddie and Fannie is said to be a jumbo mortgage loan. It is too big to be sold into the secondary mortgage market.

In Alameda County, the 2021 jumbo loan threshold is anything higher than $822,375. If you use a conventional mortgage loan to buy a house that exceeds this conforming limit, you have entered the “jumbo” range and might encounter stricter criteria.

Rising Home Prices Bring Higher Limits

Home prices in Alameda County, California rose steadily throughout 2020. According to the California Association of Realtors, the median selling price for an existing single-family home within the county rose by around 15% during 2020.

That might seem surprising, given the coronavirus pandemic and economic downturn that took place during most of 2020. But there’s no denying the data. Home prices across the San Francisco Bay Area have risen steadily due to strong demand from buyers.

As a result of these home-price trends, federal housing officials increased the conforming loan limits going into 2021. Those actions also increased the jumbo loan threshold for Alameda County, as mentioned above.

The conforming / jumbo loan limits mentioned above apply to all cities that fall within Alameda County, California. Thus, they apply to the following cities:

• Alameda
• Albany
• Berkeley
• Dublin
• Emeryville
• Fremont
• Hayward
• Livermore
• Newark
• Oakland (the county seat)
• Piedmont
• Pleasanton
• San Leandro
• Union City

Frequently Asked Questions

Conforming loan limits can be a confusing topic, especially if you’re a first-time home buyer with no previous mortgage experience. The subject tends to generate a lot of questions from borrowers. Below, we have answered some of the most common questions regarding conforming and jumbo loans in Alameda County.

Who determines the conforming loan limits for Alameda County?

The Federal Housing Finance Agency (FHFA) oversees Freddie Mac and Fannie Mae. Fannie and Freddie are corporations, not government entities. But they do receive government support and therefore have to abide by certain guidelines established by the government.

Loan limits are one of those guidelines.

The FHFA determines the maximum loan size for mortgages that can be sold to Fannie Mae and Freddie Mac. When a loan falls within these size parameters (and other criteria), it is referred to as a conforming. If it exceeds the maximum size, it’s considered jumbo.

These limits are reviewed annually and sometimes increased from one year to the next, to keep up with home-price appreciation.

Are jumbo mortgages harder to qualify for?

In short, yes. Because of the larger amounts being loaned out, jumbo loans in Alameda County and elsewhere often get a closer look from the lenders and banks that offer them.

From a borrower’s perspective, this might mean needing a higher credit score, a larger down payment, etc.

Income level is one of the most important requirements when applying for a jumbo mortgage loan. Borrower’s must be able to show, through documentation, that they can afford the monthly payments on top of their other recurring debts.

You can learn more in our jumbo loan FAQ page.

Will the limits go up again in 2022?

We won’t know until the end of the current year.

If home prices in the county continue to climb steadily, as they have over the past year or so, we could see another increase in conforming loan limits in 2022. In that scenario, the jumbo mortgage loan threshold for Alameda County would go up as well.

This is what happened from 2020 to 2021. Home prices rose steadily throughout 2020, enough to warrant an increase in the conforming limits. Housing officials tend to make these types of announcements at the end of one year, with changes for the following year.

Summary of Key Points

We’ve covered a lot of information in this article. So let’s take a moment to summarize some of the key points.

• The 2021 conforming loan limit for Alameda County, California is $822,375 for a single-family home.
• If you take out a conventional (non-government-insured) mortgage for an amount more than $822,375, it will be considered a jumbo loan.
• This jumbo threshold applies to all cities within Alameda County. That includes Alameda, Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Oakland, Piedmont, Pleasanton, San Leandro and Union City.
• Because of the larger amount of money being borrowed, jumbo loans tend to bring stricter qualification criteria for borrowers.
• Borrowers need to have a good credit score, a manageable level of debt, and a steady source of income that’s sufficient to cover the monthly payments and other recurring debts.
• You might need a larger down payment as well, depending on the loan size.
• Federal housing officials sometimes increase the conforming limits (and their corresponding jumbo loan thresholds) from one year to the next. They do this to keep up with home-price appreciation, during years when prices climb significantly.

Have questions? Bridgepoint Funding offers a variety of loan types and serves the entire Bay Area. Please contact us if you have mortgage-related questions or would like to apply for a home loan. We look forward to helping you!