Unsure whether the home you want in Martinez will require a conforming or a jumbo loan? You are not alone. With 2025 loan limits now set, the number that matters is tied to Contra Costa County, not just the national baseline. In this guide, you will learn the current limits, how lenders view each loan type, and simple examples to see where your budget lands. Let’s dive in.
Conforming vs jumbo basics
Conforming loans are conventional mortgages that meet Fannie Mae and Freddie Mac standards and fall at or below your county’s annual loan limit. The Federal Housing Finance Agency publishes these limits each year. For 2025, the national baseline limit for a one-unit home is $806,500 and the high-cost ceiling is $1,209,750. FHFA’s 2025 announcement details these numbers.
Jumbo loans exceed the county limit. They are not purchased by Fannie or Freddie, so lenders often set stricter approval standards. The county number is the key threshold for Martinez buyers.
2025 limits that matter
- Contra Costa County’s one-unit conforming limit for 2025 is $1,209,750. You can confirm county limits on the FHFA loan limit page.
- A mortgage at or below $1,209,750 is conforming in Contra Costa County. A mortgage above that amount is jumbo.
What this means in Martinez
Because Contra Costa County is a high-cost area at the 2025 ceiling, many Martinez purchases will qualify for conforming financing. Even if your loan amount is above the national baseline of $806,500, it can still be conforming locally as long as it stays at or below $1,209,750. This can open more loan program options and may streamline closing.
Quick scenarios
- Example A: Purchase price $800,000 with 20% down. Loan is $640,000. That is comfortably conforming.
- Example B: Purchase price $1,000,000 with 5% down. Loan is about $950,000. Still conforming in Contra Costa County.
- Example C: Purchase price $1,400,000 with 10% down. Loan is about $1,260,000. That exceeds $1,209,750, so it is jumbo. With 20% down on the same price, the $1,120,000 loan would remain conforming.
Underwriting and cost differences
Lender standards vary, but here is what you can generally expect.
Credit, down payment, and DTI
- Credit scores: Conforming loans can allow lower scores, while many jumbo lenders prefer 700+ with best pricing at 720–760+. Chase’s jumbo overview explains these expectations.
- Down payment: Certain conforming programs allow as little as 3% down. Jumbo loans often require 10–20% down, though some programs offer 5–10% for highly qualified borrowers. See this overview of low-down jumbo options.
- Debt-to-income: Conforming loans may allow DTIs in the mid 40s with compensating factors. Jumbo programs often want lower DTIs, commonly 43% or less. Requirements vary by lender. A practical jumbo guide outlines typical ranges.
Reserves, documentation, and timing
- Cash reserves: Jumbo loans frequently require 6–12 months of mortgage payments in reserves, sometimes more for very large loans. This guide covers reserve expectations.
- Documentation: Both loan types require income and asset verification. Jumbo underwriting is often more manual and can request additional proof of income stability and liquidity. See Chase’s jumbo education.
- Timelines: Conforming loans often close faster due to automated processes. Jumbo loans can take longer because of added review. Chase’s guide provides context on process differences.
Rates, fees, and PMI
- Rates: Jumbo rates are not always higher. For well-qualified borrowers, jumbo pricing can be similar to or even lower than conforming. It depends on loan size, credit, LTV, reserves, and whether the lender holds the loan. Compare quotes across lenders. This overview explains why pricing can vary.
- Fees: Jumbo loans can carry higher origination and appraisal costs and may include extra lender requirements.
- PMI: Conforming loans commonly use private mortgage insurance above 80% LTV. PMI on jumbo loans is less common, and many jumbo programs avoid it by requiring larger down payments or using a structured second mortgage. Details are summarized in Chase’s jumbo education.
How to choose the right path
Use this quick checklist before you write offers in Martinez.
- Confirm your county limit: For 2025, Contra Costa County’s one-unit limit is $1,209,750. Review the FHFA loan limit page or speak with your lender.
- Run the math: Purchase price minus down payment equals your loan amount. Compare that number to $1,209,750 to decide conforming vs jumbo. The FHFA 2025 announcement outlines national and high-cost thresholds.
- Prepare documents: For loans near or above $1 million, gather two years of tax returns, bank statements, and an asset list. Plan for potential reserve requirements if your loan will be jumbo. See this jumbo guide.
- Shop lenders: Jumbo pricing and overlays vary more than conforming. Ask about rate, points, reserves, and low-down options. This overview shows why lender quotes can differ.
Local takeaways for Martinez buyers and sellers
If you are buying in Martinez, you can likely target conforming financing unless your loan amount pushes beyond $1,209,750. If you are selling a home priced well above that level, expect more of your buyer pool to use jumbo financing, which can affect approval timelines and documentation requirements. Either way, you will benefit from planning your financing early so your offer stands out.
Ready to map your price point to the right loan strategy and neighborhood options? Reach out to Lauren Kraus Realtor for a clear, local plan tailored to your goals.
FAQs
What is the 2025 conforming loan limit in Contra Costa County?
- For a one-unit property in 2025, the conforming limit is $1,209,750 according to the FHFA loan limit resources.
Do Martinez buyers need jumbo if the loan is over $806,500?
- Not necessarily. In Contra Costa County for 2025, loans are conforming up to $1,209,750. The national baseline is lower, but the county limit is what matters locally per the FHFA 2025 announcement.
Are jumbo mortgage rates always higher than conforming?
- No. Jumbo rates can be similar to or even lower than conforming for highly qualified borrowers. Pricing varies by lender, credit, LTV, and reserves as outlined in this jumbo overview.
What credit scores and down payments do jumbo lenders prefer?
- Many jumbo lenders look for 700+ credit scores and 10–20% down, though some programs allow 5–10% down for strong borrowers. See Chase’s jumbo guide and this low-down jumbo summary.
Do jumbo loans take longer to close in Martinez?
- They can, due to more documentation and manual underwriting. An experienced lender can keep the process moving, as noted in Chase’s jumbo education.
