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in Tiburon, CA
Most Tiburon buyers need jumbo financing. Median home prices here regularly push past conforming loan limits, making conventional loans inadequate for waterfront properties and hillside estates.
The difference matters because jumbo loans carry stricter approval standards. You'll need stronger credit, larger reserves, and more documentation than conventional financing requires.
Conventional loans max out at $766,550 in most California counties for 2024. That covers condos and smaller properties in Tiburon, but not the majority of single-family homes.
You can qualify with 620 credit and as little as 3% down. Approval is faster than jumbo loans because underwriting follows standardized Fannie Mae and Freddie Mac guidelines.
These loans work best for buyers targeting properties at or below the conforming limit. Rates stay competitive, and you avoid the stricter reserve requirements that come with jumbo financing.
Jumbo loans handle purchase prices above conforming limits. In Tiburon, that means financing for waterfront homes, view properties, and estates that define this market.
Expect tougher qualification standards. Most lenders want 700+ credit, 10-20% down, and reserves covering 6-12 months of payments.
Rates on jumbo loans sometimes beat conventional rates for strong borrowers. Lenders compete hard for qualified buyers in high-value markets like Marin County.
Credit requirements split the two programs. Conventional allows 620 scores while jumbo lenders typically want 700 or higher.
Down payments differ significantly. Conventional permits 3% down while jumbo loans generally require 10-20% to start.
Reserve requirements separate qualified buyers from declined applications. Conventional loans need minimal reserves while jumbo underwriters want proof you can cover 6-12 months of housing payments after closing.
Loan limits create the primary divide. If your Tiburon purchase exceeds $766,550, conventional financing won't cover it.
Your purchase price determines the choice. Properties under $766,550 qualify for conventional financing with easier approval standards.
Above that threshold, jumbo becomes your only conforming option. Make sure you meet the stricter credit and reserve requirements before shopping in the higher price ranges.
Strong borrowers with 20% down and excellent credit often get better jumbo rates than conventional. If you qualify, jumbo financing can cost less despite the higher loan amount.
First-time buyers with limited cash should target properties within conventional limits. The 3% down option and lower reserves make qualification realistic.
There's no upper limit on jumbo loans. Any amount above $766,550 requires jumbo financing in most California counties including Marin.
No. Jumbo loans typically require 10-20% down minimum, with larger down payments often securing better rates.
Not always. Borrowers with excellent credit and 20% down often get competitive or better rates on jumbo loans. Rates vary by borrower profile and market conditions.
Most lenders require 700+ credit for jumbo financing. Some programs accept 680 with compensating factors like larger down payments.
Expect to show 6-12 months of housing payments in liquid reserves after closing. Higher loan amounts may require 18-24 months.
Yes, if your home appreciated above conforming limits. You'll need to meet jumbo qualification standards including credit, reserves, and equity requirements.