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in Gustine, CA
Most Gustine buyers use conventional loans because they're cheaper and easier to qualify for. Jumbo loans only come into play when you're buying above the conforming loan limit.
In Merced County, the conforming limit for 2024 is $766,550. Anything above that requires a jumbo loan with stricter requirements and different pricing.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% and get approved with a 620 credit score.
These loans work for most Gustine buyers because local home prices typically fall well below the conforming limit. You'll pay PMI if you put down less than 20%, but rates stay competitive.
Jumbo loans finance properties above $766,550 in Merced County. Lenders take on more risk, so they demand stronger borrower profiles and larger down payments.
You'll typically need a 700+ credit score and 10-20% down. Rates vary by borrower profile and market conditions, but expect stricter debt-to-income limits and bigger cash reserves.
The biggest difference is price threshold. Under $766,550, you'll use a conventional loan with easier approval standards and better pricing.
Above that limit, jumbo loans require stronger financials across the board. Higher credit scores, bigger down payments, more reserves, and lower debt ratios become non-negotiable.
For most Gustine buyers, this isn't a choice—it's determined by purchase price. If you're buying under $766,550, conventional is the clear winner.
Jumbo loans only make sense when you're buying above the conforming limit. In Gustine, that's rare unless you're looking at significant acreage or a luxury property.
The 2024 conforming limit for Merced County is $766,550. Anything above that requires a jumbo loan with stricter approval standards.
Yes, if you meet credit and income requirements. You'll pay PMI until you reach 20% equity, but rates stay competitive.
Not always. Rates vary by borrower profile and market conditions, but strong borrowers sometimes get competitive jumbo pricing.
Conventional loans allow 620 minimum. Jumbo loans typically require 700+ for best terms and approval likelihood.
Most lenders want 10-20% down for jumbo loans. Larger down payments often unlock better rates and easier approval.