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in Chowchilla, CA
Most Chowchilla buyers use conventional loans because local home prices stay well below conforming limits. Jumbo loans kick in when you exceed those caps, which happens less often in Madera County than in coastal markets.
The line between these loans shifts annually based on FHFA conforming limits. In 2024, single-family homes above $766,550 require jumbo financing in most California counties.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with strong credit, though 20% eliminates mortgage insurance.
These loans max out at conforming limits set annually by federal regulators. Below those caps, you get better rates and more forgiving debt-to-income ratios than jumbo products.
Credit scores start at 620 for most programs, with best pricing around 740. PMI drops off automatically once you hit 78% loan-to-value through payments or appreciation.
Jumbo loans finance properties above conforming limits without government backing. Lenders hold more risk, so they demand stronger borrower profiles and larger reserves.
Most jumbo programs want 10-20% down depending on loan size and credit strength. You'll need significant cash reserves post-closing, often 12 months of mortgage payments.
Credit requirements start around 680 but realistic approval begins at 700-720. Lenders scrutinize income documentation more carefully and cap debt-to-income at 43% in most cases.
The approval gap widens dramatically between these products. Conventional loans forgive moderate credit issues and allow higher debt ratios, while jumbo underwriting tolerates almost no weakness.
Rate differences vary by market conditions. Sometimes jumbo rates run slightly higher, other times they compete directly with conforming rates when banks want that business.
Mortgage insurance works differently too. Conventional loans require PMI below 20% down but it drops off eventually. Some jumbo lenders build the insurance cost into rate instead of a separate monthly charge.
Chowchilla buyers rarely need jumbo financing unless purchasing investment properties or significant acreage. If your home costs less than $766,550, conventional is the obvious choice with easier approval and better terms.
Jumbo makes sense when you're buying above conforming limits and have the profile lenders want: 20% down, 740+ credit, stable W-2 income, and 12+ months reserves. Without that profile, you'll struggle to get approved or pay premium rates.
Run the numbers both ways if you're borderline. Sometimes making a larger down payment to stay conventional saves more than stretching into jumbo territory with minimum down.
$766,550 for single-family homes in Madera County. Above that amount, you need jumbo financing regardless of property type.
Yes, but expect stricter credit requirements and higher rates. Most competitive jumbo pricing requires 20-25% down depending on loan amount.
Not always. Rate spreads vary with market conditions and some lenders price jumbo competitively to attract high-net-worth borrowers.
Typically 12 months of mortgage payments in liquid assets after closing. Larger loan amounts may require 18-24 months reserves.
No, you can't refinance down in loan type. You could refinance to a smaller jumbo loan if you pay principal down below conforming limits.