Are you trying to figure out how much you can borrow for a home in Solano County? Loan limits and product rules can make a big difference in your down payment and monthly cost, especially when prices hover near key thresholds. You want a clear plan before you start touring homes so you can move fast and avoid surprises.
In this guide, you’ll learn what conforming, FHA, and VA loan limits mean for Solano County buyers, how to confirm the exact county numbers, and how those limits affect your payment, PMI or MIP, and approval path. You’ll also get a simple checklist to align your target price with the right financing. Let’s dive in.
Loan limits 101
Conforming (FHFA)
Conforming loan limits define the maximum loan size that Fannie Mae and Freddie Mac will purchase. For 2024, the Federal Housing Finance Agency set the baseline one-unit conforming limit at $766,550 and the high-cost area ceiling at $1,149,825. You can confirm county-specific limits using the FHFA county lookup tool. For background, see the FHFA’s 2024 conforming loan limit announcement.
Why it matters: If your required loan amount is at or below the county’s conforming limit, you’re in conforming territory. If it exceeds the limit, your loan is considered jumbo, which often means tighter underwriting and different pricing.
FHA (HUD)
FHA sets separate county-by-county mortgage limits that determine the maximum FHA-insured loan size. FHA has a national floor and higher ceilings for certain higher-cost counties. Check Solano County’s FHA maximums for 1–4 unit properties on HUD’s FHA mortgage limits lookup.
Why it matters: FHA allows a minimum 3.5% down payment for many borrowers, but you must stay within the FHA county limit and you’ll pay both upfront and annual mortgage insurance premiums.
VA (Department of Veterans Affairs)
VA rules changed in 2020. For eligible veterans with full entitlement, county loan limits generally no longer cap the size of a VA-backed loan. Lender overlays and entitlement status still matter, so speak with a VA-approved lender. Review VA’s guidance on VA loan limits and entitlement.
Why it matters: Many qualified veterans can purchase with zero down payment and no monthly mortgage insurance. A one-time VA funding fee may apply unless you are exempt.
Solano County context
Solano County sits within the Oakland–Hayward–Berkeley, CA metro area. Counties across the Bay Area can have different designations and limits. Since limits are set at the county level, Solano’s specific numbers determine whether your loan classifies as conforming, FHA-eligible, or jumbo.
If the home you want pushes your loan amount near the conforming ceiling, even small shifts in price or down payment can move you between conforming and jumbo. That can change the required reserves, interest rate, and whether you’ll pay PMI or MIP.
How to confirm Solano’s exact limits
- Conforming: Look up Solano County on the FHFA conforming loan limit map. Select 1–4 unit as needed.
- FHA: Use HUD’s FHA mortgage limits search and select Solano County, CA to see 1–4 unit maximums.
- VA: Review VA’s loan limits and entitlement overview and ask a VA-approved lender to confirm how your entitlement and lender overlays affect your max loan without a down payment.
Tip: These numbers update annually. Re-check them with your lender before you write an offer.
How limits affect down payment and monthly cost
Conforming loans
- Minimum down payment can be as low as 3% for some programs. If your loan-to-value is above 80%, you’ll likely pay Private Mortgage Insurance (PMI) until you reach the required equity.
- PMI increases your monthly payment. The Consumer Financial Protection Bureau notes that PMI adds a cost on top of your mortgage until you cancel it when eligible. Learn PMI basics from the CFPB’s guide on private mortgage insurance.
FHA loans
- Minimum down payment often 3.5% with qualifying credit. FHA charges an upfront mortgage insurance premium and an annual MIP paid monthly. This usually results in a higher monthly cost than a comparable conventional loan.
VA loans
- For eligible borrowers with full entitlement, often 0% down and no monthly mortgage insurance. A one-time VA funding fee may apply unless exempt.
Jumbo loans
- Loans above the conforming limit typically require larger down payments, stronger credit, more reserves, and may carry slightly higher rates. This can increase monthly payments compared with a conforming loan.
Estimating PMI or MIP
- PMI rough range can be about 0.3% to 1.5% of the loan balance annually, depending on credit and LTV. Monthly PMI estimate ≈ loan amount × PMI rate ÷ 12.
- FHA MIP includes an upfront cost plus an annual MIP. Monthly MIP estimate ≈ loan amount × annual MIP rate ÷ 12, plus the impact of the upfront premium if financed.
Example calculations (hypothetical)
These are simplified examples to show how crossing a limit can change your costs. Your actual payment depends on rate, taxes, insurance, and your lender’s pricing.
Example A: Below conforming limit, low down payment
- Purchase price: $740,000
- Down payment: 5% ($37,000)
- Loan amount: $703,000, conventional with PMI
- If PMI rate is 0.8%, monthly PMI ≈ $703,000 × 0.008 ÷ 12 ≈ $468
- Result: You keep more cash, but your monthly payment includes PMI until your equity improves.
Example B: Near the conforming ceiling
- Purchase price: $820,000
- Down payment: 10% ($82,000)
- Loan amount: $738,000
- If Solano’s conforming limit for 1-unit properties is at or above this loan amount for the year, you may still qualify for conforming terms. If your required loan exceeds the county’s conforming limit, you would move into jumbo underwriting, which could mean a higher rate and more reserves.
Principal and interest quick check
To approximate principal and interest only, use: Monthly P&I ≈ loan amount × [r ÷ (1 − (1 + r)^(−n))], where r is the monthly interest rate and n is the total number of payments. Then add estimated PMI or MIP, plus taxes and insurance, to compare full monthly costs across scenarios.
Your step-by-step checklist before touring homes
- Get preapproved, not just prequalified
- Ask your lender to confirm Solano’s current conforming and FHA limits, calculate your maximum loan based on income, DTI, and reserves, and quote rates for conforming, FHA, VA, and jumbo if applicable.
- Define target price bands
- Set a preferred price that keeps your loan at or below the conforming ceiling if you want conventional pricing. Also set a stretch band in case you pursue jumbo or FHA/VA depending on eligibility.
- Budget for upfront costs
- Plan for down payment, closing costs, prepaid taxes and insurance, and any required reserves for jumbo loans.
- Compare three monthly-payment scenarios
- Ask your lender to show you: a) below conforming with low down, b) below conforming with 20% down to avoid PMI, and c) above conforming as a jumbo with the needed down payment.
- Use negotiation and creative structuring
- If your ideal home puts you just over a limit, consider negotiating the price, asking for seller credits to buy down your rate or cover closing costs, or exploring a small second lien. Check lender rules for any of these options.
- Reconfirm everything before you write
- Re-check county limits, lender overlays, and any special requirements like reserves, gift funds, or appraisal rules.
Strategy tips when your price is near a limit
- Nudge the down payment to avoid PMI or to keep your loan at or below the conforming ceiling.
- Compare the one-time extra cash needed at closing with the ongoing monthly cost of jumbo pricing.
- Consider different Solano neighborhoods or property types that may fit your preferred financing band.
- If you are VA-eligible, ask a VA-approved lender to run a zero-down scenario and confirm how entitlement applies to your situation.
Typical lender requirements by loan type
Conventional (conforming)
- Down payment as low as 3% for some programs. PMI likely if below 20% down. Competitive pricing often improves with higher credit scores. Reserves may be limited unless other risk factors are present.
FHA
- 3.5% minimum down for many borrowers with qualifying credit. Requires upfront and annual MIP. Appraisal and property condition standards can be stricter.
VA
- Often 0% down for eligible borrowers with full entitlement. No monthly mortgage insurance. A funding fee may apply unless exempt. Lenders may require residual income and other qualifications.
Jumbo
- Often 10% to 20% down or more, stronger credit, lower DTI, and several months of reserves. Rates may be modestly higher and documentation more detailed.
Put your financing and search plan together
Your best move is to confirm Solano County’s current limits, compare a few scenarios, and set two or three target price bands tied to specific loan products. That way you can tour with confidence and write competitive offers that match your budget. If you are eligible for VA or considering FHA, ask your lender to model those side by side with conventional terms so you can see the full monthly impact of PMI or MIP.
When you are ready to shop in Solano County, work with a local team that understands how financing realities shape strategy. If you want clear guidance and an efficient path from preapproval to closing, connect with Merge Real Estate. We will help you align price, financing, and search so you can move quickly when the right home hits the market.
FAQs
How do I tell if my Solano purchase will be conforming or jumbo?
- Confirm the FHFA conforming limit for Solano County for the current year, then subtract your planned down payment from the purchase price. If the required loan is at or below the limit, it is conforming.
What if my loan amount is just over the conforming limit?
- Compare the extra cash needed to reduce your loan below the limit with the potential higher rate, reserve requirements, and monthly cost of a jumbo loan. You can also try negotiating the price.
Can I use FHA in Solano County on a higher-priced home?
- Only up to the FHA county limit for the property’s unit count. If your required FHA loan would exceed that limit, you will need a different product or a structure that bridges the gap.
Are VA loans capped by county limits in Solano?
- For many veterans with full entitlement, county limits do not cap the VA-backed loan size. Lender overlays and your entitlement status still matter, so ask a VA-approved lender to confirm.
How much does PMI add to my monthly payment?
- It varies by credit and down payment. A rough range is 0.3% to 1.5% of the loan amount per year. For example, on a $600,000 loan, PMI could be roughly $150 to $750 per month.
