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in Coalinga, CA
Most Coalinga buyers stick with conventional loans because they cover typical home prices in Fresno County. Jumbo loans only make sense when you're buying above the conforming limit — currently $806,500 in this area.
The difference isn't just loan size. Jumbos come with stricter approval requirements and different rate structures. Knowing which category your purchase falls into shapes everything from your down payment to your monthly cost.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with strong credit, though most borrowers aim for 20% to avoid PMI.
Credit score minimums start at 620, but you'll get better rates above 740. These loans offer the most flexibility in Coalinga's market — predictable terms, competitive pricing, and straightforward underwriting.
Debt-to-income ratios max out around 50% for most borrowers. Lenders can verify income through W-2s, tax returns, or bank statements depending on your employment situation.
Jumbo loans kick in above $806,500 in Fresno County. Lenders price them based on the added risk of financing properties outside government-backed programs.
Expect to bring 10-20% down, sometimes more on investment properties. Credit standards tighten — most lenders want 700 minimum, and you'll see the best pricing above 760.
Reserve requirements go up too. Lenders typically want 6-12 months of mortgage payments in the bank after closing. Documentation gets more thorough since there's no government backstop on these loans.
Loan limits drive the split. Under $806,500 opens conventional options with easier approval standards and lower down payments. Above that threshold forces you into jumbo territory with tighter requirements.
Jumbo rates sometimes beat conventional pricing when credit is strong. But the reserves and documentation requirements make qualification harder even if the rate looks good.
PMI works differently too. Conventional loans let you drop it at 20% equity. Jumbo lenders often build the mortgage insurance cost into the rate instead of charging it separately.
If you're buying under $806,500 in Coalinga, conventional makes the most sense. Lower barriers to entry, more forgiving credit standards, and predictable terms work for most buyers.
Jumbo only becomes necessary above that limit. Before applying, make sure you have 10%+ down, strong credit, and 6+ months reserves. If those pieces aren't in place, consider properties within conforming limits.
Some borrowers use piggyback loans to avoid jumbo requirements — putting 10% down on a conventional first and covering the rest with a second mortgage. That strategy works when you want to stay under the conforming limit but can't hit 20% down.
$806,500 for single-family homes. Anything above that requires jumbo financing with stricter approval standards.
Yes, though 15-20% is more common and gets better pricing. Expect higher reserves and credit requirements with smaller down payments.
Not always. Borrowers with 760+ credit and 20%+ down sometimes get jumbo rates below conventional pricing.
Conventional starts at 620. Jumbo lenders want 700 minimum, with best terms at 760+.
Typically 6-12 months of mortgage payments in liquid assets after closing. Higher for investment properties or lower credit scores.