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Chico sits in Butte County, where home prices can push past conforming loan limits on larger estates and premium properties. A jumbo loan covers anything above those FHFA limits — no agency backing, stricter underwriting.
Most buyers in Chico don't need jumbo financing. But if you're targeting acreage, a custom build, or a high-end property, this is likely your path.
700–720+
Min Credit Score
10–20%
Down Payment
12 months
Cash Reserves
Fixed or ARM
Rate Type
30–45 days
Typical Close Time
Jumbo Loans in Chico
Jumbo lenders want strong borrowers. Expect a minimum 700 credit score — many lenders want 720 or higher. Debt-to-income ratios need to stay tight, usually under 43%.
You'll need 12 months of reserves in the bank after closing. Down payments typically start at 10%, but 20% gets you better pricing and avoids added scrutiny.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico sits in Butte County, where home prices can push past conforming loan limits on larger estates and premium properties. A jumbo loan covers anything above those FHFA limits — no agency backing, stricter underwriting.
Most buyers in Chico don't need jumbo financing. But if you're targeting acreage, a custom build, or a high-end property, this is likely your path.
Jumbo lenders want strong borrowers. Expect a minimum 700 credit score — many lenders want 720 or higher. Debt-to-income ratios need to stay tight, usually under 43%.
Jumbo loans aren't sold to Fannie or Freddie. Each lender sets its own rules — rates, overlays, and max loan amounts vary significantly across lenders.
We shop across 200+ wholesale lenders to find who's pricing jumbo aggressively right now. That spread matters. One lender's jumbo rate can be a full point higher than another's.
Chico isn't a typical jumbo market. That actually works in your favor — fewer competing jumbo buyers means sellers sometimes negotiate harder on premium properties.
Full income documentation is non-negotiable here. Two years of tax returns, W-2s or business returns, and recent pay stubs. Self-employed borrowers need solid net income — jumbo lenders scrutinize write-offs heavily.
If your loan amount falls close to the conforming limit, run the numbers on both options. Conforming loans carry lower rates and looser qualification standards.
An ARM can make jumbo more affordable short-term. A 7/1 or 10/1 ARM often prices better than a 30-year fixed on jumbo. Know your timeline before locking.
Butte County has specific property considerations. Rural acreage and homes near wildfire zones may face added appraisal scrutiny and insurance requirements on jumbo files.
Post-Camp Fire recovery has shifted parts of the county's property market. Some high-value properties carry complex title or rebuild histories — jumbo lenders will dig into those details.
Butte County follows the standard FHFA conforming limit. Any loan above that threshold is considered jumbo and follows non-agency underwriting guidelines.
Some lenders allow 10% down on jumbo loans. You'll need strong credit and reserves — most lenders prefer 20% to offer competitive pricing.
Yes, typically. Expect more documentation requests and a longer underwriting review. Budget 30-45 days minimum for most jumbo files.
Usually yes. Jumbo rates carry a premium over conforming rates. Rates vary by borrower profile and market conditions.
Yes, but it's harder. Lenders average two years of net income from tax returns. Heavy write-offs reduce your qualifying income significantly.
It can. Properties in high fire hazard zones may require specific insurance coverage. Some lenders add overlays or decline certain rural parcels.