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in Parlier, CA
Most Parlier buyers use conventional loans because local home prices sit comfortably under conforming limits. Jumbo loans only come into play when you're financing a property that exceeds those thresholds.
The distinction matters because conventional loans offer lower rates and easier qualifying. Jumbo loans require stronger financials but open doors to higher-priced properties throughout Fresno County.
Conventional loans in Parlier follow FHFA conforming limits, currently $806,500 for single-family homes in Fresno County. You can put down as little as 3% if your credit is strong, though 20% avoids mortgage insurance.
These loans offer the best rates because Fannie Mae and Freddie Mac buy them on the secondary market. Lenders compete hard on pricing, and you'll see lower closing costs compared to jumbo products.
Jumbo loans cover amounts above $806,500, which rarely applies to Parlier properties but matters for higher-end homes elsewhere in Fresno County. These loans stay on lender balance sheets, so underwriting is stricter.
Expect to put down 10-20% minimum, carry a 700+ credit score, and show substantial cash reserves. Rates run 0.25-0.75% higher than conventional because lenders hold more risk.
The loan limit is the obvious split: conventional tops out at $806,500, jumbo starts there. But the real differences show up in qualification—jumbo loans demand lower debt ratios, bigger reserves, and spotless credit.
Conventional loans let you stretch debt-to-income up to 50% in some cases. Jumbo lenders cap it at 43%, sometimes 45%. You'll also need 6-12 months of reserves instead of the 2-3 months conventional requires.
If your Parlier purchase falls under $806,500, conventional is the clear choice—better rates, easier qualifying, lower costs. There's no reason to use a jumbo loan when you fit conforming limits.
Jumbo only makes sense when you're buying above those limits or need a loan amount conventional can't cover. You'll pay more in rate and fees, but that's the trade-off for financing higher-value properties.
Jumbo loans start at $806,501 in Fresno County. Anything under that amount qualifies as conventional financing.
Yes, jumbo rates run 0.25-0.75% higher because lenders hold the risk instead of selling to Fannie or Freddie. Rates vary by borrower profile and market conditions.
No. Jumbo loans require 10-20% down minimum depending on loan amount and credit profile.
Conventional loans are easier. They allow higher debt ratios, lower reserves, and more flexible underwriting than jumbo products.
Not if you put down 20% or more. Under 20%, some jumbo lenders offer MI but many won't go below that threshold.