Question 1

What's the 2026 conforming loan limit in Contra Costa County?

Accepted Answer

The 2026 conforming limit is $1,249,125. Loans above this amount are jumbo loans. FHA and VA loans cap at the same limit.

Question 2

Is Contra Costa County an FHA high-cost area?

Accepted Answer

Yes. Contra Costa is designated an FHA high-cost area for 2026. FHA mortgage insurance rates may be slightly higher than standard-cost areas.

Question 3

Is Contra Costa County a VA high-cost area?

Accepted Answer

Yes. VA loans in Contra Costa are subject to high-cost area rules. The funding fee and rate structure reflect this designation.

Question 4

How much do I need to put down on a conventional loan?

Accepted Answer

Conventional loans require a minimum of 3% down. At 5% to 10% down, PMI applies. At 20% down or more, PMI is not required.

Question 5

What credit score do I need to qualify for a mortgage?

Accepted Answer

Most conventional lenders require 620 FICO minimum. FHA loans accept 580 FICO with 3.5% down. VA loans typically require 620 or higher.

Question 6

Can I carry two mortgages while buying in Clayton?

Accepted Answer

Yes. You can carry two mortgages if your debt-to-income ratio allows. Lenders will count both payments when qualifying you.

Question 7

How does the new East County Service Center affect Clayton home values?

Accepted Answer

The $155 million service center in Brentwood improves regional infrastructure and access to county services. Better public services typically support stable property values.

Question 8

What's the difference between FHA and VA loans in Contra Costa?

Accepted Answer

FHA requires 3.5% down minimum and charges mortgage insurance for the life of the loan if down payment is under 10%. VA allows zero down with no PMI, but charges a funding fee.

Question 9

Can I get a jumbo loan in Clayton if I need more than $1,249,125?

Accepted Answer

Yes. Jumbo loans are available above the conforming limit. Expect to put 20% down, have 700+ FICO, and show 6-12 months of reserves.

Question 10

How long does it take to close a mortgage in Clayton?

Accepted Answer

Most conventional loans close in 30 to 45 days. FHA and VA loans may take 45 to 60 days due to additional appraisal requirements.

Question 11

What income do I need to qualify for a home in Clayton?

Accepted Answer

Lenders typically cap debt-to-income at 43% to 50%. With Contra Costa's median household income at $125,727, most buyers in this range qualify for conventional mortgages.

Question 12

Do I need a rate lock when I apply for a mortgage?

Accepted Answer

Rate locks are optional but recommended. Most lenders offer 30-, 45-, or 60-day locks. Locking protects you if rates rise during underwriting.

Question 13

How much does PMI cost on a conventional loan?

Accepted Answer

PMI typically runs 0.5% to 1.5% annually on the loan amount. PMI cancels at 78% LTV or when you request it at 80% LTV.

Clayton mortgage FAQ: rates, limits & loan types