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in Fresno, CA
Most Fresno buyers stick with conventional loans because home prices here rarely hit the conforming loan limit. But if you're eyeing a luxury property in Fig Garden or a large estate in Woodward Park, you'll need a jumbo loan.
The dividing line is $806,500 for 2025. Below that, conventional loans offer lower rates and easier approval. Above it, jumbo loans become your only option for full financing.
Conventional loans are backed by Fannie Mae and Freddie Mac, which means lenders follow standardized guidelines. You can put down as little as 3% with strong credit, though 20% down avoids PMI.
Most Fresno properties qualify for conventional financing. These loans deliver the lowest rates when you have good credit and documented income. If your target price is under $750,000, this is usually your best bet.
Jumbo loans exceed the $806,500 conforming limit and aren't backed by government agencies. Lenders take on more risk, so they require stronger borrower profiles and larger down payments.
Expect to put down 10-20% minimum. Credit standards sit higher—typically 680 or above, though 700+ gets you the best pricing. Reserves matter more here; most lenders want 6-12 months of payments in the bank after closing.
The rate gap between conventional and jumbo loans has narrowed. Jumbo rates sometimes match or beat conventional when you have excellent credit and 20%+ down. But approval requirements stay stricter across the board.
Conventional loans allow higher debt ratios and smaller reserves. Jumbo underwriting scrutinizes income documentation more carefully—bank statement loans exist for jumbo, but they cost more. Property appraisals get extra attention on jumbo deals too.
If your Fresno purchase stays under $806,500, conventional wins on flexibility and ease of approval. The 3% down option opens doors for first-time buyers, and qualifying guidelines give you more room on debt ratios.
Above that threshold, jumbo is your path forward. Focus on building a strong down payment and keeping reserves intact. If you're self-employed or have complex income, expect lenders to dig deeper into your financial picture before approval.
$806,500 for single-family homes. Anything above requires jumbo financing.
Not anymore. With 20% down and strong credit, jumbo rates often match conventional pricing.
Yes, but expect higher rates and stricter reserve requirements than 20% down deals.
Conventional loans allow more flexibility on credit, debt ratios, and reserves. Jumbo underwriting runs stricter across all criteria.
Most jumbo loans avoid PMI with 20% down. Below that, lenders use higher rates instead of mortgage insurance.