Contra Costa County Conventional Loan Limit Increase for 2018

Conventional loan limits are going to increase in 2018. For Contra Costa County , California the new loan limit will be $679,650 up from $636,100 currently. In 2016 the loan limit was $625,500.

The increase is to keep up with generally rising home values.

How will this change the market?

Conventional loans are generally easier to qualify for than Jumbo Loans. For example they require little or no reserves after closing (as opposed to the typical 6-9 months Jumbo requires) . They also allow a higher debt to income ratio than Jumbo.

Purchasing power for a borrower who has 20% down would go from approximately $795,125 to $849,562 with the increase. Without any additional down-payment purchasing power will raise $43,550.

 

 

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