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in San Rafael, CA
San Rafael sits in the heart of Marin County, where home prices routinely push past conforming loan limits. Most buyers here face a simple choice: conventional financing or jumbo.
The line between these loans is bright. Conventional caps at $806,500 in Marin. Anything above that requires jumbo financing, which means different underwriting and often tighter credit standards.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with strong credit. PMI applies below 20% equity, but it drops off once you hit that threshold.
Rates stay competitive because these loans trade in massive secondary markets. Underwriting is standardized, which speeds up approval. Most San Rafael condos and smaller single-families fall within conventional limits.
Jumbo loans finance anything above conforming limits. In San Rafael, that's most single-family homes in desirable neighborhoods. These loans don't sell to Fannie or Freddie, so lenders hold more risk.
Expect stricter requirements. Most jumbo lenders want 680+ credit scores and 10-20% down. Cash reserves matter—many ask for 6-12 months of payments in the bank after closing. Rates vary by borrower profile and market conditions.
Credit standards split these loans apart. Conventional approves borrowers at 620 with compensating factors. Jumbo rarely goes below 680, and most competitive pricing sits at 720+.
Down payment flexibility differs sharply. Conventional allows 3% down for qualified buyers. Jumbo typically starts at 10%, with better rates at 20%. Reserve requirements also climb—jumbo underwriters scrutinize post-close liquidity more than conventional lenders do.
Loan limits create the hard boundary. San Rafael properties under $806,500 qualify for conventional. Above that number, you need jumbo. No exceptions, no workarounds.
If your San Rafael target sits under $806,500, conventional wins. You get lower credit thresholds, smaller down payments, and removable PMI. The underwriting moves faster because guidelines are standardized across all lenders.
Above that limit, jumbo is your only option. Focus on building reserves and polishing your credit before applying. A 720+ score and 20% down unlock the best pricing. Jumbo isn't harder—it just demands cleaner financials from the start.
Most Marin buyers eventually need jumbo. The median home price pushes conventional limits. If you're shopping in Terra Linda or Dominican areas, plan for conventional. Shopping in Gerstle Park or the Canal? Jumbo is likely.
The limit is $806,500 in Marin County. Loans above this amount require jumbo financing regardless of property type.
Yes, many lenders approve jumbo loans at 10% down. Expect higher rates and stricter reserve requirements below 20% equity.
Not always. Strong borrowers with 20%+ down often see jumbo rates match or beat conventional pricing in competitive markets.
Most lenders require 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts may demand more reserves.
Yes. Once you reach 20% equity through payments or appreciation, you can request PMI removal on conventional loans.