California Jumbo Loan Limits: a 2022 Update for Mortgage Shoppers

What are the California jumbo loan limits for 2022? Did they go up over last year? What’s the new jumbo limit for my particular county, and what if I need to borrow more?

These are common questions among California home buyers and mortgage shoppers. And we’ve addressed all of them below, with an updated look at jumbo mortgages in 2022.

That’s the short answer. Now, let’s take a closer look at the 2022 conforming loan limits and jumbo mortgage thresholds for all California counties.

Understanding ‘Jumbo’ Loans in California

Conforming and jumbo loan limits in California were increased for 2022 in response to rising home prices. In many counties across the state, the new jumbo loan threshold for 2022 is set at $647,200 (for a single-family home). So if you were to borrow more than that, you’d be crossing from “conforming” into “jumbo” territory.

Higher-priced real estate markets, like San Francisco and Orange County, have jumbo loan thresholds set at $970,800 in 2022. See the table below for more.

By definition, a California “jumbo loan” is one that exceeds the maximum “conforming” size limit for a particular county. Basically, this means the loan is too big to be sold to Freddie Mac or Fannie Mae. So it earns a “jumbo” label to distinguish it.

Fannie Mae and Freddie Mac are the two government-sponsored enterprises (or GSEs) that purchase mortgage loans from lenders, and then turn around and sell them to investors through the secondary mortgage market.

Federal housing agencies limit the maximum size for mortgage loans that can be sold to Fannie and Freddie. And those restrictions are precisely what distinguish a California conforming loan from a jumbo.

• Anything that falls within this range is called a “conforming” loan, because it conforms to the size restrictions set by the government. It can therefore be sold to Fannie and Freddie.
• Anything above the limit is considered a “jumbo” loan and is not eligible for GSE purchase. These products often come with stricter criteria, due to the larger amount being borrowed.

So technically, there’s isn’t a “jumbo loan limit for California” in 2022. There’s a conforming limit for conventional home loans issued within the state, and these vary by county. But there’s no industry-wide maximum limit for jumbo mortgage products in California. Depending on the situation, a person might be able to borrow $1 million, $2 million, or even more.

Current Jumbo Mortgage Thresholds by County

The current single-family conforming loan limit for most housing markets across the state is $647,200, for a single-family home. In higher-priced markets, like Los Angeles and Orange County, the conforming cap is set at $970,800. Anything above those amounts would be considered a jumbo mortgage in 2022.

The table below shows the 2022 jumbo loan threshold for all 58 counties in California, listed in alphabetical order. Note that the > symbol means “greater than.” So in the first row, for example, a jumbo loan in Alameda County would be anything greater than $970,800 (for a single-family home).

So now we have a clear definition of a jumbo mortgage loan in California, in 2022. If you are borrowing more than the conforming limit for your county (as shown in the table above), you’re entering into jumbo territory.

Let’s Discuss Your Financing Options

Bridgepoint Funding is located in the Bay Area, but we serve the entire state of California. Due to the relatively high-priced nature of the Bay Area real estate market, we do a lot of jumbo loan transactions. So we’re very knowledgeable and proficient when it comes to these “oversized” mortgage products.

Please contact us if you need to borrow more than the conforming loan limit for your county. We can review your financial situation — including your income, assets and debts — to determine if you’re a good candidate for a California jumbo loan in 2022.

We work with a variety of lenders, which allows us to find the best loan product for each individual client. Feel free to contact our staff with any questions you have, or to start the application process!