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in Hanford, CA
Most Hanford buyers use conventional loans because they fit under conforming limits. Jumbo loans kick in when you're financing above those thresholds—less common here than in coastal markets.
The line between these two isn't about credit quality. It's about loan size and how much documentation lenders require to approve larger amounts.
Conventional loans stay within FHFA conforming limits—currently $766,550 for single-family homes in Kings County. You can put down as little as 3% with PMI or 20% to avoid it entirely.
These loans dominate the Hanford market because most properties price well below the jumbo threshold. Lenders view them as lower risk, which translates to easier approval and more competitive pricing.
Credit minimums start at 620, though 740+ gets you the best rates. Debt-to-income caps out around 50% for strong files, and you can finance primary homes, second homes, or investment properties.
Jumbo loans finance amounts above $766,550 in Kings County. They're not government-backed, so lenders set their own guidelines and price for the added risk of larger loan amounts.
You'll need stronger financials across the board. Most jumbo lenders want 700+ credit, 10-20% down minimum, and debt-to-income below 43%. Expect to document six months of reserves post-closing.
Rates vary by borrower profile and market conditions. Strong borrowers often see jumbo rates that rival or beat conventional pricing, especially when relationship pricing comes into play with portfolio lenders.
The biggest split is loan amount. If you're under $766,550, conventional makes sense. Above that, jumbo is your only option unless you split financing with a piggyback second.
Documentation intensity ramps up with jumbos. Lenders scrutinize income sources harder, require more reserves, and underwrite with less flexibility. A conventional file that squeaks through at 49% DTI won't fly as a jumbo.
Down payment requirements differ meaningfully. Conventional allows 3% down for first-timers, while jumbo typically starts at 10% and often requires 20% for competitive pricing. That's a $153,000 minimum for a jumbo purchase at the conforming limit.
For most Hanford buyers, conventional wins by default. Few local properties push into jumbo territory, and the flexibility of conventional guidelines fits typical borrower profiles better.
Choose jumbo only when your purchase price demands it. If you're close to the conforming limit, consider whether a slightly smaller home or larger down payment keeps you in conventional territory—the approval path is simpler.
Jumbo makes sense for high-income borrowers with substantial assets buying premium properties. If you're self-employed with complex income or stretching DTI, stick with conventional when possible. The underwriting tolerance is meaningfully different.
Jumbo loans start above $766,550 in Kings County. Anything at or below that amount qualifies as conforming conventional financing.
Yes, though 20% down typically unlocks better pricing. Lenders also require stronger credit and more reserves with smaller down payments.
Not always. Rates vary by borrower profile and market conditions, but strong borrowers often see competitive jumbo pricing.
Conventional minimums start at 620. Jumbo loans typically require 700+ for approval and 740+ for best pricing.
Yes, with 20% down. Below that, you'll pay PMI until reaching 20% equity through payments or appreciation.
Yes. Most jumbo lenders want six months of mortgage payments in reserves post-closing, while conventional may require none.