Question 1

What is the jumbo loan limit in Butte County?

Accepted Answer

Butte County follows the standard FHFA conforming limit. Any loan above that threshold is considered jumbo and follows non-agency underwriting guidelines.

Question 2

Can I get a jumbo loan with 10% down in Chico?

Accepted Answer

Some lenders allow 10% down on jumbo loans. You'll need strong credit and reserves — most lenders prefer 20% to offer competitive pricing.

Question 3

Do jumbo loans take longer to close?

Accepted Answer

Yes, typically. Expect more documentation requests and a longer underwriting review. Budget 30-45 days minimum for most jumbo files.

Question 4

Are jumbo rates higher than conforming rates?

Accepted Answer

Usually yes. Jumbo rates carry a premium over conforming rates. Rates vary by borrower profile and market conditions.

Question 5

Can self-employed borrowers qualify for jumbo loans in Chico?

Accepted Answer

Yes, but it's harder. Lenders average two years of net income from tax returns. Heavy write-offs reduce your qualifying income significantly.

Question 6

Does wildfire risk affect jumbo loan approval in Butte County?

Accepted Answer

It can. Properties in high fire hazard zones may require specific insurance coverage. Some lenders add overlays or decline certain rural parcels.

Jumbo Loans in Chico, CA: Finance Above Conforming Limits