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in Novato, CA
Novato sits in Marin County, where home prices routinely push past conforming loan limits. That means the conventional vs jumbo question comes up on nearly every purchase deal here.
The split matters because these two loan types have different rate structures, reserve requirements, and qualification standards. Knowing which one fits your deal saves time and money.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. They offer competitive rates and flexible terms for borrowers with solid credit and documented income.
The 2026 conforming loan limit is the ceiling for conventional financing. Borrow above it and you're automatically in jumbo territory, regardless of your qualifications.
Jumbo loans cover purchase prices that exceed the conforming limit. In Novato, that's most mid-range and luxury properties — not just the high end.
Lenders carry the full risk on jumbo loans. That means stricter standards: higher credit scores, larger reserves, and tighter debt-to-income ratios than conventional loans require.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Novato.
Novato sits in Marin County, where home prices routinely push past conforming loan limits. That means the conventional vs jumbo question comes up on nearly every purchase deal here.
The split matters because these two loan types have different rate structures, reserve requirements, and qualification standards. Knowing which one fits your deal saves time and money.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. They offer competitive rates and flexible terms for borrowers with solid credit and documented income.
Rate is where borrowers expect a big gap, but it's not always dramatic. HousingWire flagged the 30-year fixed hitting 6.57% recently — jumbo rates can run close to conventional, or even below it, depending on the lender and your profile. Rates vary by borrower profile and market conditions.
The bigger difference is the qualification bar. Conventional loans allow more flexibility on reserves and DTI. Jumbo loans require stronger financials across the board, and each lender sets their own overlays.
If your purchase price falls within the conforming limit, conventional is almost always the smarter path. Lower reserves, more lender competition, and easier guidelines make it the default choice.
If you need to borrow above the limit — which happens fast in Novato — jumbo is your only option. The key is shopping across multiple lenders. We have access to 200+ wholesale lenders, so we can find competitive jumbo pricing that a single bank can't match.
Marin is a high-cost county with an elevated conforming limit. Borrowing above that threshold puts you in jumbo territory automatically.
Not always. Jumbo rates can be competitive or even lower for strong borrowers. Rates vary by borrower profile and market conditions.
Most jumbo lenders want 10-20% down. Some programs allow less, but expect stricter requirements on credit and reserves.
Yes, if your loan amount stays within the conforming limit. Many Novato purchases exceed that threshold and require jumbo financing.
Most jumbo lenders require 700 or higher. Some go to 720+ depending on the loan size and down payment.
Yes. Lenders typically require 12 months of reserves on jumbo loans. Conventional loans are much more flexible on reserves.