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in Clovis, CA
Clovis has neighborhoods where conventional loans hit their ceiling fast. North Clovis estates and Harlan Ranch properties often push past conforming limits.
The difference comes down to loan size. Conventional loans max out at set limits, while jumbos handle anything above that threshold.
Conventional loans follow FHFA conforming limits. They offer the lowest rates and most flexible terms when you qualify.
You can put down as little as 3% with strong credit. PMI drops off at 20% equity, unlike FHA insurance that sticks around.
Most Clovis neighborhoods stay within conventional limits. Old Town homes and central Clovis properties typically qualify.
Jumbo loans cover purchases above conforming limits. These mortgages finance luxury properties and high-value estates.
You need stronger credit and larger reserves. Most lenders want 700+ scores and 10-20% down depending on loan size.
Expect tighter underwriting than conventional. Bank statement review goes deeper, and debt ratios matter more.
Loan limits create the clearest split. Conventional caps where jumbo begins, currently around $766,550 in Fresno County.
Down payments differ significantly. Conventional allows 3-5% down, while jumbo typically requires 10% minimum for competitive rates.
Credit standards separate further at the jumbo level. A 680 score works for conventional, but jumbo lenders want 700-720.
Reserve requirements hit harder with jumbos. Lenders expect 6-12 months of payments in the bank versus 2 months for conventional.
Your purchase price dictates the choice. If you're buying below conforming limits, conventional wins on rate and flexibility.
Above those limits, jumbo is your only option unless you make a massive down payment. Strong credit gets you competitive jumbo rates.
North Clovis buyers often need jumbo for newer estates. Central and Old Town areas typically stay conventional.
Run the numbers with both if you're borderline. Sometimes a larger down payment keeps you conventional and saves on rate.
Fresno County uses the standard conforming limit around $766,550. Anything above requires a jumbo loan.
Yes, but expect higher rates. 15-20% down gets you better pricing and easier approval.
Not always. Strong credit and large down payments can match or beat conventional rates.
Conventional typically closes quicker. Jumbo underwriting takes longer due to additional documentation requirements.
Yes. If you can keep the loan amount below conforming limits, you qualify for conventional financing.