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in Clearlake, CA
Most Clearlake buyers use conventional loans because they're under the conforming limit. But some lakefront properties and larger estates push past that threshold, triggering jumbo loan requirements.
The main split is the loan amount — conventional caps at $766,550 in Lake County. Anything above that needs jumbo financing, which means stricter underwriting and different rate structures.
Conventional loans cover purchase prices up to $766,550 in Clearlake and follow Fannie Mae or Freddie Mac guidelines. You can put down as little as 3% with acceptable credit, though 5-20% is more common.
PMI applies if you put less than 20% down, but it drops off once you hit 20% equity. Credit score requirements start at 620, though rates improve significantly at 680 and above.
These loans offer the most flexible terms — 15 or 30 years fixed, adjustable options, and the widest network of lenders. Most Lake County buyers qualify for conventional because it fits the local price range.
Jumbo loans finance properties above $766,550 in Lake County — think premium lakefront homes or larger acreage parcels. These loans don't follow Fannie or Freddie rules, so each lender sets their own standards.
Expect to put down 10-20% minimum, with some lenders requiring more depending on loan size. Credit scores typically need to be 700 or higher, and you'll face tighter debt-to-income limits around 43%.
Jumbo rates can be competitive, sometimes even lower than conventional. But approval is stricter — lenders want to see cash reserves covering 6-12 months of payments and full income documentation.
The bright line is $766,550 — that's where conventional ends and jumbo starts in Lake County. Below that threshold, you get standard guidelines and PMI options. Above it, underwriting gets more hands-on.
Conventional loans allow 3% down with PMI. Jumbo loans require 10-20% down with no PMI but higher credit standards. You're trading flexibility for larger loan amounts.
Reserve requirements differ sharply. Conventional might ask for 2 months of payments in the bank. Jumbo lenders want 6-12 months, sometimes more if the loan exceeds $1.5 million.
If your Clearlake purchase is under $766,550, conventional is the default choice. You get standard guidelines, PMI flexibility, and easier approval with 620+ credit and modest reserves.
Jumbo makes sense only when you need it — for higher-end lakefront properties or estates that exceed conforming limits. Come prepared with 700+ credit, 15% down minimum, and substantial cash reserves.
Some buyers stretch to stay under the jumbo threshold by adjusting their down payment. Running the numbers both ways often shows conventional saves money even with PMI versus jumbo's reserve and qualification hurdles.
Jumbo starts at $766,551 in Lake County. Anything at or below $766,550 qualifies as conventional conforming.
Yes. If your purchase price is $900,000, putting 15% down drops your loan to $765,000 — keeping you in conventional territory.
Not always. Jumbo rates can be competitive or even lower, but approval is harder. Rates vary by borrower profile and market conditions.
Not perfect, but 700+ is standard. Some lenders go to 680 with larger down payments and strong reserves.
Stay under $766,550 if possible. Even $1 over triggers jumbo underwriting and reserve requirements.