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in Point Arena, CA
Point Arena's coastal real estate spans a wide price range, from modest single-family homes to high-value ocean-view properties. The right mortgage depends entirely on your purchase price and how it stacks up against conforming loan limits.
Conventional loans handle most residential purchases up to $806,500 in Mendocino County. Above that threshold, you're in jumbo territory with different rules, rates, and requirements.
Conventional loans work for properties priced up to $806,500 in this market. These mortgages follow Fannie Mae and Freddie Mac guidelines, which means predictable underwriting and competitive pricing.
You'll need 620 minimum credit for approval, though 740+ gets you the best rates. Down payments start at 3% for first-time buyers, 5% for repeat buyers, but you'll pay PMI below 20% down.
These loans offer the most flexibility on property type and borrower profile. Rates vary by borrower profile and market conditions, but conventional typically beats jumbo pricing in the conforming range.
Jumbo loans kick in above $806,500 in Mendocino County. These handle Point Arena's premium coastal properties where conventional financing can't reach.
Expect stricter requirements across the board. Most lenders want 700+ credit and 10-20% down minimum. You'll also need substantial reserves—typically 12 months of mortgage payments in the bank after closing.
Jumbo rates run higher than conventional because lenders carry the full risk without government backing. But there's no PMI requirement regardless of down payment, which can offset some of the rate difference.
The conforming loan limit creates a hard line at $806,500. Below that, you get easier approval standards and better pricing. Above it, lenders demand more proof you can handle the larger payment.
Credit requirements differ significantly. Conventional approves at 620, though you'll pay higher rates. Jumbo lenders rarely go below 700, and most prefer 720+ for their best pricing.
Down payment expectations shift dramatically. Conventional allows 3-5% down for qualified borrowers. Jumbo typically requires 10% minimum, with 20% down getting you the best terms and rates.
Reserve requirements tell the real story. Conventional might accept 2-6 months reserves depending on down payment. Jumbo demands 12+ months as standard, sometimes 24 months for higher loan amounts.
Your purchase price makes this decision for you in most cases. Buying under $806,500? Conventional gives you better rates and easier approval. Above that limit, jumbo is your only option.
If you're shopping right near the conforming limit, run the numbers both ways. Sometimes buying slightly below $806,500 saves enough in rate and requirements to make the smaller property worth it.
Jumbo makes sense when you need the higher loan amount and have strong financials to qualify. You'll pay more in rate, but gain access to Point Arena's premium coastal real estate that conventional loans can't touch.
$806,500 for Mendocino County. This applies to single-family homes and determines when you need jumbo financing.
Yes, most lenders allow 10-15% down on jumbo loans. Expect higher rates and stricter requirements compared to 20%+ down.
Usually yes, because lenders carry more risk. Rates vary by borrower profile and market conditions, but jumbo typically prices 0.25-0.75% higher.
Conventional approves at 620 minimum. Jumbo typically requires 700+, with best rates starting at 720-740.
Most lenders want 12 months of mortgage payments in reserves. Higher loan amounts may require 18-24 months.
No, jumbo loans don't require PMI at any down payment level. This is one advantage over conventional loans below 20% down.