Question 1

What's the conforming loan limit in Contra Costa County?

Accepted Answer

Conforming limits change annually and vary by county. Contra Costa uses the standard limit for most of the Bay Area. Anything above that threshold requires jumbo financing.

Question 2

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Strong borrowers with 20%+ down sometimes get competitive jumbo rates. The gap has narrowed significantly compared to a decade ago.

Question 3

Can I avoid PMI on a conventional loan with less than 20% down?

Accepted Answer

Some lenders offer lender-paid PMI or piggyback second mortgages to avoid monthly PMI. Both options trade lower down payment for higher rate or second lien.

Question 4

How much should I have in reserves for a jumbo loan?

Accepted Answer

Expect 6-12 months of mortgage payments in liquid assets after closing. Investment properties or weaker credit profiles push that higher.

Question 5

Can I use gift funds for down payment on either loan type?

Accepted Answer

Yes on both. Conventional allows more gift flexibility, while jumbo lenders often want to see some of your own funds in the deal.

Conventional vs Jumbo Loans in El Cerrito: Which Fits Your Budget?