Question 1

What happens if I'm buying right at the conforming loan limit?

Accepted Answer

You have options. A larger down payment can keep you under $806,500, or you can go jumbo if the property's worth it to you.

Question 2

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Market conditions shift, and sometimes portfolio lenders price jumbos competitively to gain market share.

Question 3

Can I get a jumbo loan with less than 20% down?

Accepted Answer

Some lenders offer 10% down jumbo programs for borrowers with 740+ credit and strong income documentation.

Question 4

How much in reserves do I need for a jumbo loan?

Accepted Answer

Most lenders want 6-12 months of mortgage payments in the bank after closing. Higher loan amounts require more reserves.

Question 5

Does PMI work the same on both loan types?

Accepted Answer

Conventional loans have standard PMI options. Jumbo loans rarely allow PMI, so 20% down is typically required.

Conventional vs Jumbo Loans in Santa Fe Springs: Which Fits Your Price Range?