Conforming Two-to Four Unit Loans in California

Are you looking to buy a duplex as your primary residence? You can live on one side and rent out a room while renting out the other unit.

This is a very common way to gain experience as a landlord as an owner-occupant real estate investor. Popular investing sites like Bigger Pockets and others mention this stragey many times. Of course you don't need to be an active landlord or contact person when something needs repair. You can hire a property manager or even outsource it to a handyman friend.

When the times comes that you purchase a duplex property and are comfortable overseeing renters you may want to invest in a three or four-unit property or even 5 units and up.

Two advantages of using a conforming loan vs. FHA 2-4 unit financing in non-high balance California counties is the higher limits of $100,000 and up when using a conforming loan and no mortgage insurance.

No more is there a disadvantage to conforming purchase loans on 2-4 unit real estate. The required minimum down payment has dropped to 5-percent down from 15-25% down. However, the lower down payment may look more attractive to the buyer and buyer's agent than an FHA multi-unit loan.

Examples of buying a 2-4 unit property with a Conforming loan in California
County Duplex Price Duplex loan limit Down Payment Triplex price Triplex loan limit Down Payment Fourplex Price Fourplex loan limit Down Payment
Sources: FHFA & Fannie Mae. Loan limits are current as of .
L.A., Orange & Bay area $1,450,000 $1,472,250 $72,500 $1,700,000 $1,779,525 $85,000 $2,100,000 $2,211,600 $105,000
San Diego $1,167,000 $1,288,200 $58,350 $1,450,000 $1,557,150 $72,500 $1,753,000 $1,935,150 $87,650
Inland Empire & other counties $925,000 $981,500 $46,250 $1,000,000 $1,186,350 $50,000 $1,350,000 $1,474,400 $67,500

 

2024 California 2 to 4 Unit Loan Limits
County Duplex (2 Unit property) Triplex (3 unit property) Fourplex (4 unit property)
Sources: Fannie Mae. Posted loan limits are up to date and effective as of Nov. 28, 2023.
Alameda $1,472,250 $1,779,525 $2,211,600
Alpine $981,500 $1,186,350 $1,474,400
Amador $981,500 $1,186,350 $1,474,400
Butte $981,500 $1,186,350 $1,474,400
Calaveras $981,500 $1,186,350 $1,474,400
Colusa $981,500 $1,186,350 $1,474,400
Contra Costa $1,472,250 $1,779,525 $2,211,600
Crescent City $981,500 $1,186,350 $1,474,400
El Dorado $981,500 $1,186,350 $1,474,400
Fresno $981,500 $1,186,350 $1,474,400
Glenn $981,500 $1,186,350 $1,474,400
Humboldt $981,500 $1,186,350 $1,474,400
Imperial $981,500 $1,186,350 $1,474,400
Inyo $981,500 $1,186,350 $1,474,400
Kern $981,500 $1,186,350 $1,474,400
Kings $981,500 $1,186,350 $1,474,400
Lake $981,500 $1,186,350 $1,474,400
Lassen $981,500 $1,186,350 $1,474,400
Los Angeles $1,472,250 $1,779,525 $2,211,600
Madera $981,500 $1,186,350 $1,474,400
Marin $1,472,250 $1,779,525 $2,211,600
Mariposa $981,500 $1,186,350 $1,474,400
Mendocino $981,500 $1,186,350 $1,474,400
Merced $981,500 $1,186,350 $1,474,400
Modoc $981,500 $1,186,350 $1,474,400
Mono $981,500 $1,186,350 $1,474,400
Monterey $1,177,750 $1,423,650 $1,760,400
Napa $1,302,900 $1,574,900 $1,957,250
Nevada $981,500 $1,186,350 $1,474,400
Orange $1,472,250 $1,779,525 $2,211,600
Placer $981,500 $1,186,350 $1,474,400
Plumas $981,500 $1,186,350 $1,474,400
Riverside $981,500 $1,186,350 $1,474,400
Sacramento $977,550 $1,181,650 $1,468,500
San Benito $1,472,250 $1,779,525 $2,211,600
San Bernardino $981,500 $1,186,350 $1,474,400
San Diego $1,288,200 $1,551,850 $1,935,150
San Francisco $1,472,250 $1,779,525 $2,211,600
San Joaquin $981,500 $1,186,350 $1,474,400
San Luis Obispo $1,189,550/td> $1,437,900 $1,786,950
San Mateo $1,472,250 $1,779,525 $2,211,600
Santa Barbara $1,073,250 $1,297,300 $1,612,250
Santa Clara $1,472,250 $1,779,525 $2,211,600
Santa Cruz $1,472,250 $1,779,525 $2,211,600
Shasta $981,500 $1,186,350 $1,474,400
Sierra $981,500 $1,186,350 $1,474,400
Siskiyou $981,500 $1,186,350 $1,474,400
Solano $981,500 $1,186,350 $1,474,400
Sonoma $1,123,300 $1,357,800 $1,687,450
Stanislaus $981,500 $1,186,350 $1,474,400
Sutter $981,500 $1,186,350 $1,474,400
Tehama $981,500 $1,186,350 $1,474,400
Trinity $981,500 $1,186,350 $1,474,400
Tulare $981,500 $1,186,350 $1,474,400
Tuolumne $981,500 $1,186,350 $1,474,400
Ventura $1,221,950 $1,477,050 $1,835,600
Yolo $981,500 $1,186,350 $1,474,400
Yuba $981,500 $1,186,350 $1,474,400