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in Kerman, CA
Most Kerman buyers stick with conventional loans because they cover homes well below the conforming loan limit. Jumbo financing only matters if you're buying above $806,500 in 2025.
The choice comes down to property price and how much you can document. Kerman's housing market rarely pushes into jumbo territory, but some rural estates and newer builds cross that threshold.
Conventional loans work for the vast majority of Kerman purchases. You can put down as little as 3% with decent credit, though PMI applies below 20% equity.
These loans get sold to Fannie Mae or Freddie Mac, which means standardized underwriting. Lenders approve you based on clear DTI ratios and credit benchmarks around 620-640 minimum.
Jumbo loans finance properties above conforming limits without backing from Fannie or Freddie. Banks hold these loans in portfolio, so they set stricter requirements to protect themselves.
Expect to show 700+ credit and put down at least 10-20% depending on loan size. Lenders scrutinize reserves hard—most want 6-12 months of payments saved after closing.
The biggest split is documentation intensity. Conventional underwriting follows agency guidelines with some flexibility for compensating factors. Jumbo lenders want perfect files—two years of tax returns, full asset verification, and bulletproof income documentation.
Rates vary by borrower profile and market conditions. Jumbo rates sometimes beat conventional when you're a strong borrower because portfolio lenders compete for quality loans. But the approval bar sits much higher.
If you're buying under $806,500 in Kerman, conventional financing gives you better terms and easier approval. No reason to complicate things with jumbo requirements when you don't need to.
Jumbo only makes sense for higher-priced properties or when you need to borrow more than conforming limits allow. You'll pay for that flexibility with tougher qualification standards and likely higher down payment demands.
The limit sits at $806,500 for Fresno County. Anything above that requires jumbo financing.
Some lenders allow 10-15% down on smaller jumbos with strong credit. Most prefer 20% to avoid additional risk pricing.
Not always. Strong borrowers often get competitive jumbo rates because portfolio lenders compete for quality loans.
Conventional typically closes quicker due to standardized underwriting. Jumbo files require more extensive review and documentation.
Yes, with two years of tax returns and solid income history. Jumbo loans scrutinize self-employment income even more closely.