Question 1

What's the difference between the conforming limit and a jumbo loan?

Accepted Answer

The 2026 conforming limit in Piedmont is $1,249,125. Loans at or below that amount are conventional. Loans above it are jumbo. Conventional loans are backed by Fannie Mae or Freddie Mac. Jumbo loans are held by banks or sold to private investors.

Question 2

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes. PMI applies on conventional loans below 20% down and cancels once you reach 80% equity. A 10% down conventional loan carries PMI until you build equity. Jumbo loans skip PMI regardless of down payment.

Question 3

Why is my jumbo rate higher than the conventional rate?

Accepted Answer

Jumbo loans carry more risk for lenders. The loan amount is larger, and the investor holding the loan (not Fannie Mae) takes the loss if you default. That risk premium shows up as a rate 0.25% to 0.5% higher than conventional.

Question 4

Can I get a jumbo loan with 680 FICO?

Accepted Answer

Yes, some jumbo lenders accept 680 FICO with strong compensating factors—large down payment, low debt-to-income ratio, substantial reserves. Conventional lenders typically floor at 620 FICO. Jumbo floors are higher because the loan amount is larger.

Question 5

Is a conventional loan always cheaper than jumbo?

Accepted Answer

Not always. Conventional loans under 20% down carry PMI, which adds cost. A 10% down conventional loan may cost more monthly than a 10% down jumbo because of PMI. At 20% down, conventional wins.

Question 6

What happens if my purchase price is exactly at the conforming limit?

Accepted Answer

At $1,249,125, you qualify for conventional financing. Lenders treat that as a conforming loan, not jumbo. Rates and terms follow conventional guidelines. If your purchase is $1,249,126, jumbo rules apply.

Conventional vs. Jumbo Loans in Piedmont: Which Fits Your Purchase?