Contra Costa County FHA Loan Limits for 2017

Contra Costa County, California will see higher FHA loan limits in 2017, due to significant home-price appreciation that occurred during 2016. Going forward, the maximum FHA loan limit for a single-family property in Contra Costa County will rise to $636,150 in 2017. That’s an increase of $10,000+ from the 2016 cap of $625,500.

Contra Costa County FHA Loan Limits for 2017

Here are the revised (increased) FHA loan limits for Contra Costa County in 2017:

• One-unit property: $636,150
• Two-unit property: $814,500
• Three-unit property: $984,525
• Four-unit property: $1,223,475

Notes: In this context, a “one-unit” property is simply a single-family home. “Two-unit” refers to duplex-style properties, and so on. For typical home buyers purchasing a single-family residence in Contra Costa County, the 2017 FHA loan limit is $636,150.

Change Brought on by Rising Home Values

Home prices in Contra Costa County rose steadily through 2016. According to the real estate data company Zillow, the median home value in the county climbed 7.9% from December 2015 to December 2016. That’s more than the national average, and enough to justify higher FHA limits for Contra Costa County in 2017.

Federal Housing Administration loan limits vary by county, and they are based on median home prices. Each year, federal housing officials review these caps to ensure that they still fall within the target range, relative to home values. In some cases, increases are warranted due to rising house prices. That’s what is happening from 2016 to 2017.

And it’s not just Contra Costa County getting higher FHA loan limits in 2017. They’re going up in most counties across the nation (2,948 of them, to be exact). In 286 counties, the limits will remain unchanged. There are no counties with a decrease from 2016 to 2017. So they either went up or stayed the same in every county across the U.S.

Conforming Limits Also Getting a Boost

Conforming loan limits apply to conventional mortgages that are not insured or guaranteed by the government. This distinguishes them from FHA loans, which do receive government backing.

Next year, Contra Costa County will see higher conforming loan limits as well. They’re both going up. In 2017, the maximum conforming loan limit for a single-family home located within Contra Costa County, California will be $636,150, the same as FHA. Anything above this amount is considered a “jumbo” mortgage.

Benefits of FHA-Insured Mortgage Loans

The Federal Housing Administration (FHA) loan program was established in 1934 with the passage of the National Housing Act. The program is designed to help home buyers with low and moderate incomes purchase homes.

But the FHA does not lend money directly to borrowers. This is a common misconception. Instead, the agency insures home loans that are originated within the private sector. This insurance protects lenders from potential losses resulting from borrower default.

As a result of this added layer of protection, mortgage lenders are often more lenient with their qualification criteria for FHA borrowers (including credit scores, debt ratios, etc.).

Contra Costa FHA loans also offer a relatively low down payment, compared to some other types of mortgages. Through this program, eligible borrowers can buy a home with as little as 3.5% down. (That’s 3.5% of the purchase price or the appraised value, whichever is less.)

Learn more about California FHA loan requirements.

Have Questions? Want to Apply?

Do you plan to buy a home in 2017? Do you have questions about the 2017 Contra Costa County FHA loan limits, or other aspects of the program? We can help!

Bridgepoint Funding has been serving borrowers in California for more than 15 years. We are a locally owned company based in Walnut Creek, CA. We offer a wide variety of mortgage products and products, including the always popular FHA loan.

Please contact our staff with any questions you have.