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in Susanville, CA
Most Susanville buyers stick with conventional loans because property values rarely push past conforming limits. Jumbo loans enter the picture when you're buying above the FHFA threshold—currently $806,500 in Lassen County for 2025.
The difference isn't just loan size. Jumbo loans demand stricter qualifications and typically cost more upfront, while conventional loans offer easier approval paths and lower down payments for qualified borrowers.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with good credit, and PMI drops off once you hit 20% equity.
Credit minimums start at 620, though you'll get better rates at 740+. Debt-to-income ratios can stretch to 50% in some cases, making these loans accessible for W-2 earners with moderate savings.
Interest rates stay competitive because these loans get sold to government-sponsored enterprises. Lenders price them aggressively since they carry less risk than jumbo products.
Jumbo loans exceed conforming limits and can't be sold to Fannie or Freddie. Lenders hold these on their own books, so they scrutinize every detail of your financial profile.
Expect to put down 10-20% minimum. Most lenders want 700+ credit scores, though some accept 660 with compensating factors like large reserves or low debt ratios.
You'll need substantial cash reserves—typically 6-12 months of payments sitting in the bank after closing. Income documentation gets thorough, with lenders verifying every source and examining two years of tax returns.
Down payment splits these loans wide open. Conventional caps at 3% for first-time buyers and 5% for repeats. Jumbo starts at 10% and many lenders push for 20% on properties they view as higher risk.
Rate differences fluctuate with market conditions. Sometimes jumbo rates sit below conventional because wealthy borrowers represent lower default risk. Other times jumbos cost 0.25-0.75% more when lenders get cautious.
Approval timelines differ too. Conventional loans close in 21-30 days with standard underwriting. Jumbo loans take 30-45 days because underwriters manually review every document rather than relying on automated systems.
Use conventional financing unless your Susanville purchase exceeds $806,500. The lower barriers and flexible terms make conventional the default choice for 95% of local buyers.
Jumbo loans make sense when you're buying premium property and have substantial assets. If you can comfortably put 20% down and show strong reserves, jumbo financing works fine—just expect more paperwork and scrutiny.
Consider your full financial picture. A buyer stretching to qualify for a $850,000 jumbo might fare better buying an $800,000 property with conventional financing and keeping extra cash for reserves or renovations.
The 2025 limit is $806,500 for single-family homes in Lassen County. Anything above requires jumbo financing.
No. The loan type depends on purchase price, not loan amount. An $850,000 purchase requires jumbo financing regardless of down payment size.
Not always. Rates vary by borrower profile and market conditions, with jumbo sometimes pricing lower for strong applicants.
Only if your loan balance drops below conforming limits through paydown or the limits increase. Property value alone doesn't change loan type.
Conventional loans typically close in 21-30 days. Jumbo loans need 30-45 days due to manual underwriting requirements.