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in Orland, CA
Most Orland buyers use conventional loans because local home prices stay well under conforming limits. Jumbo loans come into play when you're buying one of the area's larger ranch properties or premium acreage.
The split between these two loan types isn't about credit quality—it's about purchase price. Once you cross the conforming loan limit threshold, you're shopping jumbo rates and requirements whether you like it or not.
Conventional loans follow Fannie Mae and Freddie Mac guidelines with straightforward approval requirements. You can put down as little as 3% if you're a first-time buyer, though most Orland buyers go with 5-10% down.
These loans work for primary homes, second homes, and investment properties in Glenn County. PMI drops off automatically at 78% loan-to-value, and you can request removal at 80% if your home appreciates.
Jumbo loans finance properties above conforming limits—currently $806,500 in Glenn County for single-family homes. These aren't government-backed, so lenders set their own approval standards and price the risk accordingly.
You'll face stricter requirements than conventional: typically 10-20% down minimum, credit scores above 700, and lower debt ratios. Most jumbo lenders want to see 6-12 months of reserves after closing.
The purchase price dividing line is absolute—you can't choose conventional if you're buying above conforming limits. Below that threshold, conventional loans offer easier qualification, lower down payments, and more lenient credit requirements.
Jumbo rates sometimes beat conventional rates because they attract borrowers with strong profiles. But jumbo underwriting scrutinizes income documentation more carefully and requires larger cash reserves to prove financial stability.
If you're buying under $806,500 in Orland, stick with conventional financing unless you have credit issues. The lower down payment options and easier qualification make it the obvious choice for most Glenn County purchases.
For properties above conforming limits—larger ranches, premium land parcels—jumbo is your only option. Make sure you have strong credit above 700, solid income documentation, and reserves to cover at least six months of payments before you start shopping.
$806,500 for single-family homes in 2025. Anything above that requires jumbo financing regardless of your credit profile.
Yes, if the total purchase price stays under conforming limits. Conventional loans work for properties up to 10 acres in rural areas.
Not always—jumbo rates can match or beat conventional for borrowers with excellent credit. Rates vary by borrower profile and market conditions.
Conventional typically requires 620-640 minimum. Jumbo lenders want 700+ and prefer scores above 720 for best pricing.
Put down 20% or more to avoid PMI entirely. Below that, you'll pay monthly mortgage insurance until you reach 78-80% loan-to-value.