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in Avenal, CA
Most Avenal buyers need conventional loans. Jumbo loans only matter if you're buying above the conforming loan limit.
The Kings County conforming limit is $806,500 for 2024. Properties priced above that threshold require jumbo financing with different approval rules.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with solid credit and stable income.
Expect PMI if you put down less than 20%. Rates stay competitive because these loans get sold to the agencies, which keeps lender risk low.
Jumbo loans fund properties over $806,500. Lenders hold more risk since these can't be sold to Fannie or Freddie.
You'll face stricter credit requirements and larger down payments. Most lenders want 700+ credit and 10-20% down minimum, sometimes more.
Down payment rules separate these loans fastest. Conventional allows 3% down, while jumbo typically demands 10-20% depending on loan amount.
Credit standards tighten dramatically with jumbo loans. A 680 score might work for conventional, but jumbo lenders usually want 700 or higher. Debt ratios also get scrutinized more heavily on jumbo applications.
If you're buying under $806,500 in Avenal, conventional wins every time. Lower down payment, easier qualification, and you keep more cash for reserves.
Jumbo only enters the picture above that threshold. Even then, some buyers split financing—using a conventional first and a second loan—to avoid full jumbo underwriting when the price just barely crosses the limit.
$806,500 for Kings County in 2024. Anything above that requires jumbo financing with different approval standards.
Sometimes, but expect higher rates and tighter credit requirements. Most lenders want 10-15% minimum, and some properties demand 20%.
Not always. Strong borrowers with large down payments sometimes get jumbo rates that match or beat conventional. Rates vary by borrower profile and market conditions.
Conventional accepts 620 minimum, though 680+ gets better rates. Jumbo typically requires 700+ for approval.
Yes, jumbo loans don't have PMI regardless of down payment. But you'll face stricter qualification to compensate for the lender's increased risk.