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Bay Area Maximum Mortgage Amount Rises Above $1 Million for 2023

Home prices across the San Francisco Bay area have risen steadily over the past year. As a result, we will see higher loan limits for all counties in 2023. In fact, the maximum amount for a conforming mortgage loan in the Bay Area will rise above $1 million in 2023.

But you don’t have to wait until next year to take advantage of these higher maximum loan limits. Here at Bridgepoint Funding, we’re honoring next year’s higher limits right now.┬áMost banks and lenders will wait until 2023 to offer these higher loan limits for borrowers. So we’re “ahead of the game” in that sense.

Maximum Mortgage Amount for Bay Area in 2023

Let’s kick things off with a quick terminology review.

A “conforming loan limit” is basically the maximum mortgage amount you can borrow when using a conforming loan. In this context, the “conforming” label means that the loan meets the specific parameters used by the mortgage buyers Freddie Mac and Fannie Mae.

If you borrow more than the conforming limit for your particular county, you are using what’s known as a jumbo mortgage. Jumbo home loans tend to require larger down payments, better credit scores, etc.

Conforming loan limits are based on home values in the county for which they are assigned. And since Bay Area home prices have risen sharply over the past year, the maximum mortgage limits for 2023 are scheduled to go up as well.

For most Bay Area counties, the 2023 conforming loan limit will go up to $1,073,000. This maximum conforming mortgage amount will apply to the following counties: Alameda, Contra Costa, Marin, San Francisco, San Mateo, and Santa Clara.

Napa, Solano and Sonoma counties have lower limits because of the lower median home values in those counties.

The figure mentioned above applies to a regular single-family home. Higher limits have been assigned for multi-family properties like duplexes. Here are the 2023 Bay Area loan limits for all property types:

One-Unit Two-Unit Three-Unit Four-Unit
$1,073,000 $1,374,000 $1,661,000 $2,064,000

The bottom line is that if you live within Alameda, Contra Costa, Marin, San Francisco, San Mateo, or Santa Clara County, your maximum conforming loan limit will go up to $1,073,000 in 2023. Anything above that would be considered a jumbo mortgage and could have stricter qualification requirements.

We’re Honoring These Higher Limits Already

Here at Bridgepoint Funding, we have already started to honor the higher loan limits for 2023. That means you don’t have to wait several more months to take advantage of these higher maximum mortgage amounts for the San Francisco Bay area.

But you won’t find this with most other banks or lenders. A lot of mortgage companies will wait until 2023 to offer this higher level of financing. We’re offering them right now.

That’s one advantage of working with Bridgepoint Funding when buying a home. Here’s another advantage…

As a mortgage broker, we have access to multiple lenders and a wide variety of home loan products. We can help you choose the best type of mortgage loan based on your financial situation, budget, and long-term plans.

Whether you’re looking for a conventional or government-backed loan, a fixed or adjustable rate, a conforming or jumbo mortgage … we’ve got you covered!

A Response to Higher Home Prices

The higher maximum mortgage limits for 2023 are the direct result of significant home-price gains over the past year.

Federal housing officials base the conforming loan limits on median home values, on a county by county basis. And in almost every county across the country, house prices rose substantially over the past year.

For example, the median house value for the San Francisco-Oakland-Hayward metro area rose from $1.1 million in June of 2020, up to nearly $1.5 million by June 2022.

Over the past 18 months or so, tight supply conditions and strong demand forced buyers to compete fiercely with one another. This boosted home prices all across the region.

As a result of these trends, we will see higher conforming loan limits in the Bay Area for 2023. But again, you don’t have to wait three more months to take advantage of them. Contact Bridgepoint Funding today to find out how much you can borrow toward a home purchase.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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