Looking at homes in Danville and wondering if your mortgage will be conforming or jumbo? You are not alone. With East Bay prices, the loan type you choose can affect your down payment, rate, and how fast you close. In this guide, you will learn how to check Contra Costa County’s current loan limit, the key differences between conforming and jumbo financing, and how to prepare a clean pre-approval. Let’s dive in.
Conforming vs. jumbo basics
Conforming loans meet Fannie Mae and Freddie Mac standards and stay at or below the county’s conforming limit. In higher-cost counties, there is also a high-balance conforming limit, which is above the national baseline but still considered conforming.
A jumbo loan is any mortgage amount above your county’s conforming or high-balance limit. Jumbos are not purchased by Fannie Mae or Freddie Mac and follow lender-specific rules.
If you are exploring FHA or VA, know that those programs have their own county limits and underwriting rules. Always check the correct program limit for the property location and year.
Check Contra Costa loan limits
Loan limits are set by the Federal Housing Finance Agency and update each year. Danville is in Contra Costa County, part of the Oakland–Hayward–Berkeley metro. Your loan type depends on the current Contra Costa limit.
Follow these steps:
- Use the official FHFA loan limits lookup tool and select Contra Costa County, CA to view the current conforming and high-balance limits.
- Considering FHA instead of conventional? Confirm the limit on HUD’s FHA county limits page.
- Estimate your loan amount. Subtract your planned down payment from the expected purchase price. Compare that number to the FHFA limit. If it is at or below the local limit, you are in conforming territory. If it is above, it is jumbo.
- Verify the property’s county and confirm with a lender during pre-approval. Limits change annually, so always double-check.
What changes for Danville buyers
Down payment and PMI
- Conforming and high-balance loans can work with lower down payments for eligible borrowers. If your loan-to-value is above 80 percent, you will typically see private mortgage insurance. The CFPB explains how PMI works, including when it can be removed.
- Jumbo loans often require larger down payments. Many lenders ask for 10 to 20 percent or more. Some allow higher loan-to-value for very strong profiles, but expect stricter pricing and documentation.
Rates and pricing
- Conforming loans benefit from the standardization of Fannie Mae and Freddie Mac. This often leads to competitive pricing at or below the county limit.
- Jumbo rates can be competitive, especially for strong credit profiles, but they depend on each lender’s appetite and investor guidelines. Market conditions can shift pricing quickly.
Credit score, DTI, and reserves
- Conforming loans can allow credit scores in the mid-600s for many lenders. Debt-to-income ratios can reach the mid-40 percent range with compensating factors.
- Jumbo lenders usually want higher scores, often 700 or above for best pricing. They may require lower debt-to-income ratios and more cash reserves, commonly 6 to 12 months of payments.
Underwriting and documentation
- Conforming files often run through automated underwriting systems, which can speed decisions if your documentation is straightforward.
- Jumbo loans are frequently underwritten manually. Expect closer review of income, assets, and liquidity, especially if self-employed or using bonuses or stock compensation. Some jumbo programs may also ask for additional appraisal reviews.
Property types and eligibility
- Many single-family homes in Danville are straightforward for either conforming or jumbo if title and appraisal are clean.
- Certain condos, complex HOA structures, or unique properties may face stricter review in jumbo programs. Ask your lender to preview the HOA and appraisal approach early.
Timeline and process
- Conforming loans can often close faster because of standardized processing. Thirty days is common when documentation is complete.
- Jumbo loans can take longer due to manual underwriting and second-level appraisal reviews. Plan extra time if you are near closing deadlines.
Refinance and cash-out
- Cash-out and refinance rules differ by program. Jumbo cash-out often has stricter limits and seasoning requirements. If you plan renovations after closing, discuss future refinance options and reserve needs with your lender during pre-approval.
Which path fits your scenario
- Scenario 1: You are purchasing a mid-range Danville home and your calculated loan amount is at or below Contra Costa County’s FHFA limit. You will likely use a conforming or high-balance conforming loan with standard PMI options if needed.
- Scenario 2: You are buying a high-end property and your loan amount exceeds the county limit. You will likely need a jumbo loan with larger reserves and tighter credit review.
- Scenario 3: You have non-standard income like self-employment or stock compensation, or you are buying a unique property. You may still qualify for conforming if the loan amount fits. If not, explore jumbo or portfolio options that can handle your documentation type.
How to shop lenders smartly
- Confirm the current Contra Costa limit with the FHFA lookup tool. This frames your options.
- Interview two to three lenders. Include a large bank, a regional bank or credit union, and a mortgage broker to compare programs.
- Ask each for sample pricing, required reserves, minimum credit score, PMI options for conforming, and appraisal policies for Danville properties.
- Compare the full picture. Look at rate, points, fees, required reserves, underwriting flexibilities, and estimated timeline to close.
- Follow the CFPB’s guidance on mortgage shopping so you can weigh apples to apples.
Timeline to close
- Pre-approval: 1 to 7 days depending on how complete your documents are.
- Appraisal and processing: 7 to 21 days. Conforming is often faster. Jumbos may need added review.
- Total time to close: 30 to 60 days is common. Build in buffer for jumbo or complex files.
Local factors to price in
- Home values: Danville and greater Contra Costa prices often push buyers near or above the FHFA limit. Confirm early to set the right down payment and rate expectations.
- HOA and condos: HOA rules and condo eligibility can affect both conforming and jumbo financing. Share HOA documents with your lender as soon as possible.
- Property taxes and insurance: These items impact your debt-to-income ratio and reserve needs. Wildfire risk and insurance availability can also affect closing in some California areas.
- Appraisals: Choose lenders who regularly close loans in the East Bay and work with appraisers familiar with Danville neighborhoods.
Pre-approval checklist
Gather these items before you shop homes or submit offers:
- Identification and Social Security number
- Income documentation: recent pay stubs, W-2s for the last 2 years
- If self-employed: 2 years personal and business tax returns, K-1s if applicable, year-to-date profit and loss
- Asset statements: last 2 to 3 months for bank, retirement, and investment accounts; gift letters if applicable
- Details on bonuses, commissions, RSU or stock vesting, or rental income if used to qualify
- Credit information and authorization to pull credit
- For a specific property: contract, HOA documents if a condo or HOA property, and the property address
- Explanations for large deposits, employment gaps, or recent credit inquiries
- For jumbo candidates: documentation showing required reserves and sources for down payment and closing costs
Key questions to ask lenders
- Is my loan amount under or over the FHFA conforming limit for Contra Costa County?
- What down payment and reserve requirements apply for my profile and property type?
- What are the minimum credit score and debt-to-income requirements for this program?
- How does mortgage insurance work for this option, and when can it be removed?
- What is my estimated rate and APR today, and what could change that before closing?
- What appraisal requirements apply to this property type in Danville, and how long do appraisals take right now?
- What is the typical underwriting turnaround time and total time to close for this program?
Putting it all together
If you are buying in Danville, the line between conforming and jumbo can shape your budget, your approval odds, and your timeline. Start by confirming the current Contra Costa County limit, then match your down payment and documentation to the program that fits best. Build a complete pre-approval package, compare lenders on more than just rate, and leave extra time if your file is jumbo or complex.
When you are ready to plan your purchase or coordinate value-add work after closing, connect with the local team that understands both the market and the build. Reach out to Woehrle Real Estate & Development for a calm, step-by-step path from home search to finished home.
FAQs
What is a jumbo loan in Contra Costa County?
- A jumbo is any loan amount above the current FHFA conforming or high-balance limit for Contra Costa County. Use the FHFA lookup tool to confirm the exact limit for the year.
How do I check the Danville conforming limit?
- Go to the FHFA loan limits lookup and select Contra Costa County. Confirm the year and property type to view the correct limit for your purchase.
Do jumbo loans always have higher rates than conforming?
- Not always. Market conditions and lender appetite drive jumbo pricing. Strong profiles can see competitive rates, though requirements are often stricter than conforming.
How does PMI work on conforming loans?
- If your down payment is under 20 percent, conforming loans typically use private mortgage insurance. PMI can be removed when you reach required equity. The CFPB provides a clear overview of PMI rules.
Can I buy a Danville condo with a jumbo loan?
- Yes, but jumbo lenders may apply stricter condo and HOA reviews. Share HOA documents early and ask about appraisal and eligibility requirements.
How long do jumbo loans take to close?
- Expect 30 to 60 days in many cases. Manual underwriting, added documentation, and potential appraisal reviews can extend timelines compared to conforming.
