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in San Joaquin, CA
Most San Joaquin buyers start with conventional loans, but hit a wall when their home price exceeds conforming limits. That's when jumbo loans enter the conversation.
The line between these two sits at $806,500 in Fresno County. Cross that threshold and you're in jumbo territory, which changes everything about qualifying.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with decent credit, though 20% eliminates PMI.
These work for most San Joaquin properties under $806,500. Lenders approve them faster because the underwriting standards are standardized across the industry.
Credit scores as low as 620 get you in the door, though you'll pay more. Hit 740+ and you unlock the best pricing tiers available.
Jumbo loans finance homes above conforming limits without government backing. Lenders hold more risk, so they scrutinize income stability and reserves harder.
You typically need 10-20% down depending on loan size. Credit scores below 700 rarely get approved, and most lenders want to see 740+.
Cash reserves matter here. Expect lenders to require 6-12 months of payments in the bank after closing, not the 2 months conventional loans require.
The approval bar sits higher for jumbos. Where conventional loans accept 43% debt-to-income ratios, jumbo lenders often cap you at 38-40%.
Interest rates run close on both products when you're well-qualified. The gap used to be wide, but competitive jumbo pricing has tightened that spread to 0.125-0.25% in many cases.
Conventional loans allow more flexibility on income types. Jumbo underwriters dig deeper into employment history and want to see stable, verifiable income streams with less tolerance for gaps.
If your San Joaquin home costs under $806,500, conventional wins on ease of approval. You'll close faster with less documentation and lower reserves.
Above that limit, jumbo is your only option unless you make a massive down payment. Make sure your credit is 720+ and you have strong reserves before shopping in that range.
Some buyers split the difference by keeping their purchase under conforming limits. That opens up conventional financing even if they could afford more house.
The conforming limit is $806,500 in Fresno County. Anything above that requires jumbo financing.
Not anymore. Well-qualified borrowers often see rates within 0.125-0.25% of conventional rates.
Some lenders allow it, but 20% down gets you better rates. Loan size and credit strength determine minimum down payment.
Conventional loans start at 620. Jumbo lenders typically require 700 minimum, preferring 740+.
Expect 6-12 months of mortgage payments in the bank after closing. Conventional loans usually need just 2 months.