Question 1

What's the 2025 conforming loan limit in Lafayette?

Accepted Answer

$806,500 for single-family homes in Contra Costa County. Anything above that requires jumbo financing or government-backed options if you qualify.

Question 2

Can I get a jumbo loan with less than 20% down?

Accepted Answer

Yes, some lenders offer 10-15% down jumbo programs. You'll need strong credit and significant reserves to compensate for the lower equity position.

Question 3

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Rate spreads shift with market conditions, and jumbo pricing sometimes beats conventional when investors favor larger loans.

Question 4

How much in reserves do jumbo lenders require?

Accepted Answer

Typically 6-12 months of payments in liquid assets. The exact amount varies by loan size, down payment, and credit strength.

Question 5

Can I avoid PMI with a conventional loan?

Accepted Answer

Put down 20% or more and PMI doesn't apply. Below that threshold, you'll pay monthly mortgage insurance until you reach 20% equity.

Conventional vs Jumbo Loans in Lafayette: Which Fits Your Home Purchase?