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San Francisco Bay Area Conforming Loan Limits to Go Up in 2021
Bay Area home prices have risen steadily through most of 2020, despite the ongoing economic effects of the coronavirus pandemic. As a result, the conforming loan limits for all Bay Area counties will go up in 2021. This change was announced earlier this week and will take effect on January 1, 2021.
You’ll find a complete list of the 2021 conforming loan limits for all nine San Francisco Bay Area counties below, along with an update on home-price trends across the region.
Bay Area Conforming Loan Limits for 2021
On November 24, 2020, the Federal Housing Finance Agency (FHFA) announced that they would be increasing the conforming loan limits for counties across the U.S. These limits apply to conventional mortgage loans, those that are not guaranteed or insured by the federal government.
(Note: The FHA loan program has its own set of limits, and they too could be going up for 2021. We expect the Department of Housing and Urban Development to announce those changes within the next couple of weeks.)
The table below shows the 2021 conforming loan limits for all counties within the San Francisco Bay Area. The “1-unit” column applies to regular single-family homes. The “2-unit” column refers to duplex-style properties with two residences. And so on. In a typical real estate transaction, the figures shown in the “1-unit” column apply.
| COUNTY | 1-UNIT | 2-UNIT | 3-UNIT | 4-UNIT |
| Alameda | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| Contra Costa | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| Marin | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| Napa | $816,500 | $1,045,250 | $1,263,500 | $1,570,200 |
| San Francisco | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| San Mateo | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| Santa Clara | $822,375 | $1,053,000 | $1,272,750 | $1,581,750 |
| Solano | $550,850 | $705,200 | $852,400 | $1,059,350 |
| Sonoma | $707,250 | $905,400 | $1,094,450 | $1,360,100 |
Six of the nine Bay Area counties fall into the “high-cost” category. These are housing markets with a relatively high median home price, compared to the national average. The high-cost counties of Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara will have the maximum conforming loan limit of $822,375, staring in January 2021.
Napa, Solano and Sonoma counties have lower caps, due to the lower median home prices in those area. Out of all nine of the Bay Area counties, Solano has the lowest conforming loan limit for 2021 ($550,850).
According to the FHFA news release that announced these loan limit changes: “Median home values generally increased in high-cost areas in 2020, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375.”
Jumbo Loan Threshold Going Up as Well
Not all borrowers in the Bay Area are limited to the conforming loan limits shown above. Those with sufficient income can borrow more than these figures, as long as they meet the lender’s requirements. When a person borrows more than the conforming limit for their Bay Area county, it’s known as a jumbo mortgage loan.
In the six high-cost counties mentioned earlier, a jumbo loan in 2021 will be anything above $822,375. The other three counties will have different thresholds, as explained below.
- In Napa County, a jumbo loan is one that exceeds the $816,500 limit (staring on January 1).
- In Solano County, the 2021 jumbo loan threshold will be anything higher than $550,850.
- In Sonoma County, the “line” is drawn at $707,250. Anything above that is considered jumbo.
Generally speaking, jumbo loans come with stricter requirements for the borrowers who seek them. That’s because there is a larger amount of money being borrowed, and thus a higher level of risk involved. As a result, many borrowers try to stay within the conforming range shown in the table above.
Just know that it’s entirely possible to borrow more than those limits, if your income supports it.
Home Prices Still Climbing
To recap: All nine Bay Area counties will have higher conforming loan limits in 2021 — and therefore a higher jumbo mortgage threshold as well.
These changes were made in direct response to rising home values in our region, and elsewhere across the country. Much to the surprise of housing analysts and economists, the real estate market has continued to perform strongly throughout the pandemic. This is largely the result of record-low mortgage rates and a renewed emphasis on homeownership.
According to a November 2020 housing market update from the California Association of Realtors, home prices were up in eight of the nine Bay Area counties. San Francisco was the one exception — they’ve seen a light dip in prices. But all other counties experienced a rise in home prices, to varying degrees.
In Contra Costa County, for instance, the median selling price for existing single-family homes rose by 15% from October 2019 to October 2020. Meanwhile, prices in nearby Santa Clara County rose by nearly 17% during that same 12-month period, according to C.A.R.
This is partly why Bay Area conforming loan limits will go up in 2021, and why the FHA mortgage program might follow suit as well.
How much can you borrow? Bridgepoint Funding has been meeting the needs of home buyers and homeowners in the Bay Area for nearly 20 years. Please contact us if you’d like to receive a mortgage rate quote, or to find out how much you might be able to borrow.
