Loading
in Corcoran, CA
Most Corcoran buyers need conventional loans, which cover properties up to $806,500 in 2025. Jumbo loans kick in above that limit for higher-priced homes.
The loan type you need depends entirely on your purchase price. Different rules apply to each, from down payments to credit requirements.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. You can put down as little as 3% with private mortgage insurance, though 20% down eliminates PMI.
Most lenders approve these loans with 620+ credit and 43% debt-to-income ratios. Rates tend to be lower than jumbo loans because lenders can sell these mortgages to Fannie or Freddie.
Jumbo loans finance properties above $806,500 without government backing. Lenders hold these mortgages in portfolio, so they set their own credit and income standards.
Expect to put down 10-20% minimum with 700+ credit scores. Many lenders want cash reserves covering 6-12 months of payments sitting in your accounts after closing.
Conventional loans offer easier approval with lower credit scores and down payments. Jumbo loans demand stronger financial profiles because lenders take on more risk without Fannie Mae backing.
Rates vary by borrower profile and market conditions, but jumbos often carry slightly higher rates. The real difference shows up in qualification—jumbos scrutinize income documentation and asset reserves much harder.
Your purchase price makes this decision for you. If the Corcoran property you want costs under $806,500, conventional financing gives you better terms and easier approval.
Above that limit, you're in jumbo territory whether you like it or not. Start building your credit above 720 and stacking cash reserves now—jumbo underwriters want to see financial strength across every metric.
The limit is $806,500 for single-family homes. Anything above that requires jumbo financing.
Some lenders approve 10% down on jumbos, but expect higher rates and stricter income requirements. Most borrowers put down 20% or more.
Not always—strong borrowers with 25%+ down sometimes get competitive jumbo rates. Rates vary by borrower profile and market conditions.
Most lenders want 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts require more reserves.
No, you'll pay PMI until you reach 20% equity. Jumbo loans don't use PMI but require larger down payments upfront.