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Chico sits well inside conforming loan territory. The 2026 single-unit limit for Butte County is $832,750 — enough to cover most purchases here.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. Fewer buyers competing means more room to negotiate in Chico. Rates vary by borrower profile and market conditions.
$832,750
2026 Loan Limit
620
Min Credit Score
3%
Min Down Payment
~6.57%
30-Yr Fixed (Apr 2026)
21–30 days
Typical Close Time
Conforming Loans in Chico
You need at least a 620 credit score to get a conforming loan approved. Most lenders want 3–5% down, though 20% avoids private mortgage insurance (PMI — a monthly fee protecting the lender, not you).
Debt-to-income ratio (DTI — your monthly debts divided by gross income) should sit at or below 45%. Fannie and Freddie allow up to 50% DTI with strong compensating factors like reserves or high credit.
Local decision guide
Use this guide to connect conforming loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico sits well inside conforming loan territory. The 2026 single-unit limit for Butte County is $832,750 — enough to cover most purchases here.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. Fewer buyers competing means more room to negotiate in Chico. Rates vary by borrower profile and market conditions.
You need at least a 620 credit score to get a conforming loan approved. Most lenders want 3–5% down, though 20% avoids private mortgage insurance (PMI — a monthly fee protecting the lender, not you).
Conforming loans are the most competitive product on the market. Banks, credit unions, and mortgage brokers all offer them — which means pricing varies more than most borrowers expect.
We shop conforming rates across 200+ wholesale lenders. Retail banks quote one rate. We find the lender pricing that rate lowest on the day you lock.
The borrowers who get hurt on conforming loans are the ones who shop one bank and stop. A quarter-point rate difference on a $450,000 loan is roughly $70 per month — real money over 30 years.
Watch your DTI before you apply. Student loans, car payments, and credit cards add up fast. Clean up small balances first — even one card paid off can move your DTI enough to hit a better pricing tier.
FHA loans require only 580 credit but carry mandatory mortgage insurance for the life of the loan in most cases. Conforming loans let you cancel PMI once you hit 20% equity.
If your purchase price runs above $832,750, a jumbo loan takes over — and jumbo rates run higher with stricter reserve requirements. Conforming keeps costs lower for most Chico buyers.
Chico's recovery from the Camp Fire reshaped parts of the local market. Some neighborhoods have seen significant rebuild activity — appraisals in those areas can be unpredictable.
Conforming appraisals follow Fannie and Freddie guidelines strictly. Properties with fire damage history, deferred maintenance, or unusual build quality may face appraisal challenges. Know the property before you commit.
The 2026 limit for a single-unit property in Butte County is $832,750. Loans above that require jumbo financing.
Yes — as low as 3% down for qualifying first-time buyers. You'll pay PMI until you reach 20% equity.
Every tier matters. A 740+ score gets the best pricing. Dropping below 680 can add meaningful cost to your rate.
It depends on current condition and the appraisal. Fully repaired homes typically qualify — partially repaired or damaged properties often don't.
Usually, if your credit is 660 or above. Conforming PMI cancels; FHA mortgage insurance typically doesn't without a refinance.
Most conforming purchases close in 21–30 days with a complete file. Appraisal and title turnaround drive most of the timeline.