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in Fairfax, CA
Fairfax sits in a county where home prices routinely blow past conventional loan limits. Most Marin buyers eventually face this question: stick with conventional financing or step up to a jumbo loan.
The right choice depends on your purchase price and how much you can put down. Conventional loans cap at $806,500 in Marin County for 2025, while jumbo loans handle everything above that threshold.
Both are solid options for qualified borrowers. Rates vary by borrower profile and market conditions, but understanding the structural differences helps you plan your financing strategy before you shop.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% on a primary residence, though you'll pay PMI until you hit 20% equity.
Credit requirements start at 620, but realistically you need 680+ for competitive rates. These loans shine when your purchase price stays under the county conforming limit.
DTI ratios max out around 50% with strong compensating factors. Lenders like seeing reserves, especially in expensive markets like Marin where property taxes run high.
Conventional financing offers the most flexibility for owner-occupied homes under the conforming cap. Investment properties need 15-25% down depending on your credit profile.
Jumbo loans handle anything above $806,500 in Marin County. Most lenders want 10-20% down, though some programs allow as little as 10% for exceptionally strong borrowers.
Credit standards tighten up here. You need 700+ for most approvals, 740+ for competitive pricing. Lenders scrutinize income documentation more carefully on jumbo files.
DTI limits typically max at 43%, sometimes 45% with significant reserves. Expect to show 6-12 months of housing payments in the bank after closing.
Jumbo rates often match or beat conventional rates despite the higher loan amounts. Lenders compete aggressively for well-qualified borrowers in markets like Fairfax.
The conforming loan limit draws the hard line. Under $806,500, conventional loans give you more flexibility on down payment and credit. Above that number, you're in jumbo territory whether you like it or not.
Down payment gaps matter less than most borrowers expect. Conventional allows 3% down but adds PMI. Jumbo requires 10-20% but often skips mortgage insurance entirely, which can offset the higher down payment.
Credit and income scrutiny increases with jumbo loans. Lenders verify everything twice and want deeper reserves. Conventional underwriting follows standardized guidelines with less flexibility.
Rate differences fluctuate with market conditions. Right now jumbo rates compete well, but that spread changes. A broker can show you live pricing across both options.
Your purchase price makes this decision for you most of the time. Buying under $806,500? Conventional wins unless you're putting 20%+ down anyway. Buying above that? Jumbo is your only conforming option.
When you're right at the conforming limit, run both scenarios. Sometimes buying at $850,000 with jumbo financing beats stretching to keep a purchase at $805,000 just to use conventional.
Down payment size matters. Got 20%+ saved? Jumbo loans often price better than conventional since you skip PMI either way. Putting down 5-10%? Conventional gives you more lender options.
Credit profile tips the scale in borderline cases. Sitting at 680 credit? Conventional treats you fairly. At 760? Jumbo lenders compete hard for your business with aggressive pricing.
The conforming limit is $806,500 for single-family homes in Marin County. Anything above that amount requires jumbo financing.
Yes, but you need 20% down. Below that threshold, lenders require private mortgage insurance on conventional loans.
Not always. Jumbo rates often match or beat conventional rates for well-qualified borrowers. Rates vary by borrower profile and market conditions.
Most lenders want 6-12 months of housing payments in reserves after closing. The exact requirement depends on your loan amount and down payment.
Yes. Expect to put 20-25% down and show stronger reserves. Investment property jumbo loans carry stricter qualification requirements.
Conventional loans start at 620, but 680+ gets you better rates. Jumbo loans need 700 minimum, with 740+ unlocking the best pricing.