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in Lafayette, CA
Lafayette's mix of established neighborhoods and luxury estates means buyers often choose between conventional and jumbo financing. The decision hinges on your purchase price and how much you value flexibility versus premium property access.
Conventional loans cap at $1,249,125 in Contra Costa County for 2026. Properties above that threshold require jumbo financing, which comes with different underwriting standards and rate structures.
Conventional loans offer the most straightforward path to homeownership in Lafayette for properties under $832,750. You can put down as little as 3% with strong credit, though 20% down eliminates PMI and often nets better rates.
These loans follow standardized underwriting from Fannie Mae and Freddie Mac. Debt-to-income limits typically max at 50%, and you'll need at least a 620 credit score to qualify, though 740+ unlocks the best pricing.
Jumbo loans open access to Lafayette's higher-end properties in areas like Happy Valley and Burton Valley. Most lenders require 10-20% down, and approval standards tighten significantly compared to conventional financing.
Expect scrutiny on reserves, income documentation, and credit history. Many jumbo lenders want 6-12 months of reserves and credit scores above 700, though we've placed borrowers with 680 scores when compensating factors are strong.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Lafayette.
Lafayette's mix of established neighborhoods and luxury estates means buyers often choose between conventional and jumbo financing. The decision hinges on your purchase price and how much you value flexibility versus premium property access.
Conventional loans cap at $1,249,125 in Contra Costa County for 2026. Properties above that threshold require jumbo financing, which comes with different underwriting standards and rate structures.
Conventional loans offer the most straightforward path to homeownership in Lafayette for properties under $832,750. You can put down as little as 3% with strong credit, though 20% down eliminates PMI and often nets better rates.
The loan limit draws the clearest line between these options. Conventional loans in Contra Costa County stop at $832,750, while jumbo loans start there and extend into multi-million dollar territory with no upper cap.
Jumbo rates sometimes beat conventional pricing when markets favor large loans, but jumbo underwriting always demands more documentation. You'll need larger reserves, stricter income verification, and often lower DTI ratios despite paying more down.
If your Lafayette target sits under $832,750, conventional financing wins on simplicity and down payment flexibility. You'll face fewer hoops and can access 3% down programs if needed, making it easier to preserve cash for renovations or reserves.
For properties above the conforming limit, jumbo loans are your only non-government option. The tighter requirements mean you need stronger financials, but we shop 200+ lenders to find jumbo programs that match your specific situation, whether that's asset-based income or complex employment.
$832,750 for single-family homes in Contra Costa County. Anything above that requires jumbo financing or government-backed options if you qualify.
Yes, some lenders offer 10-15% down jumbo programs. You'll need strong credit and significant reserves to compensate for the lower equity position.
Not always. Rate spreads shift with market conditions, and jumbo pricing sometimes beats conventional when investors favor larger loans.
Typically 6-12 months of payments in liquid assets. The exact amount varies by loan size, down payment, and credit strength.
Put down 20% or more and PMI doesn't apply. Below that threshold, you'll pay monthly mortgage insurance until you reach 20% equity.