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in Gustine, CA
Most Gustine buyers never need a jumbo loan. But if you're financing a higher-priced property in Merced County, knowing the line matters.
The 2026 conforming loan limit is the dividing line. Stay under it and you're in conventional territory. Go over and jumbo rules apply.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. That means lenders can sell them on the secondary market, keeping rates competitive.
You need a 620 minimum credit score. Put down 20% and you skip private mortgage insurance entirely.
Fixed and adjustable terms are both available. Most Gustine buyers go 30-year fixed for payment stability.
Jumbo loans cover amounts above the conforming limit. No Fannie or Freddie backstop means lenders take on more risk — and price it accordingly.
Expect stricter requirements across the board. Most jumbo lenders want a 700+ credit score and 12 months of cash reserves.
Rates vary by borrower profile and market conditions. Jumbo rates often run close to conventional, but the qualification bar is meaningfully higher.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Gustine.
Most Gustine buyers never need a jumbo loan. But if you're financing a higher-priced property in Merced County, knowing the line matters.
The 2026 conforming loan limit is the dividing line. Stay under it and you're in conventional territory. Go over and jumbo rules apply.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. That means lenders can sell them on the secondary market, keeping rates competitive.
The biggest difference is qualification standards. Conventional loans are forgiving by comparison. Jumbo lenders want stronger credit, more assets, and lower debt ratios.
HousingWire flagged that the 30-year fixed hit 6.57% with application volume falling 10.4% week-over-week as of early April 2026. At that rate level, jumbo borrowers feel the payment impact more sharply on larger balances.
Down payment expectations also differ. Conventional allows as little as 3% down for qualified buyers. Jumbo typically wants 10-20% minimum.
If your loan amount stays under the conforming limit, take the conventional route. Easier qualification, broader lender competition, and lower reserves required.
Jumbo makes sense when the property price demands it. In Gustine, that's a narrower set of buyers — typically high-income earners with strong credit and significant liquid assets.
Run your numbers before assuming you need jumbo. Sometimes a larger down payment brings you back under the conforming limit and into conventional range.
The FHFA sets conforming limits annually. Check the current limit for Merced County before assuming you need a jumbo loan.
Yes. If you can bring the loan amount under the conforming limit, you qualify for conventional. Run the math first.
Not always. Jumbo rates can be close to conventional. Rates vary by borrower profile and market conditions.
Most jumbo lenders require 700 or higher. Some want 720+. Conventional loans allow scores as low as 620.
Most jumbo lenders want 12 months of mortgage payments in reserves. Conventional loans require far less.
Conventional loans generally close faster. Jumbo underwriting is more intensive and can add time to the process.