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in Fort Bragg, CA
Fort Bragg sits on California's coast with a mix of affordable homes and high-end coastal properties. The loan you need depends entirely on your purchase price and the conforming loan limit for Mendocino County.
Conventional loans cover most purchases up to the local conforming limit. Once you cross that threshold, you're in jumbo territory with different rules and stricter requirements.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with mortgage insurance, or 20% to avoid it entirely.
These loans offer predictable underwriting and competitive rates. Credit scores as low as 620 qualify, though better scores unlock better pricing. Rates vary by borrower profile and market conditions.
Debt-to-income ratios max out around 50% for most lenders. You'll need two years of stable income and standard documentation like W-2s, tax returns, and bank statements.
Jumbo loans finance properties that exceed conforming limits set by the Federal Housing Finance Agency. These are non-conforming loans, meaning Fannie and Freddie won't buy them.
Lenders hold more risk, so requirements tighten. Expect to put down at least 10%, though 20% is common. Credit scores typically need to hit 700 minimum, with 740+ getting the best pricing.
Income verification runs deeper than conventional loans. Lenders want to see substantial reserves—often 12 months of payments in the bank after closing. Rates vary by borrower profile and market conditions.
The conforming loan limit for Mendocino County determines which loan you need. Cross that line by even a dollar and you're financing with a jumbo loan, facing stricter qualification standards.
Conventional loans accept higher debt ratios and lower credit scores. Jumbo lenders scrutinize every aspect of your financial profile—income stability, asset reserves, and credit history all matter more.
Rate differences depend on your profile. Strong borrowers sometimes get better jumbo rates than conventional rates. Weaker profiles pay a premium on jumbo loans for the added lender risk.
Your purchase price makes this decision for you most of the time. If the home costs less than the conforming limit, conventional financing gives you more flexibility and easier qualification.
For coastal properties above the limit, jumbo loans are your only option. Prepare by boosting your credit score above 700, saving extra reserves, and documenting stable income over multiple years.
Fort Bragg buyers shopping near the conforming limit should run numbers both ways. Sometimes staying under the threshold with a smaller loan saves money even if you can afford more house.
Conforming limits change annually by county. Contact us for current Mendocino County limits—this number determines whether you need conventional or jumbo financing.
No. The loan amount after your down payment determines the loan type. If that amount exceeds conforming limits, you need jumbo financing regardless of down payment size.
Not always. Borrowers with 760+ credit scores and strong financials sometimes get lower jumbo rates than conventional rates due to lender competition.
Most jumbo lenders want 12 months of mortgage payments in reserves after closing. Higher loan amounts may require 18-24 months of reserves in liquid assets.
Only if the loan amount stays under the conforming limit. Once you cross that threshold, conventional financing isn't available regardless of property type.