Question 1

What is the conforming loan limit in Merced County?

Accepted Answer

As of 2026, Merced County follows the baseline FHFA conforming limit. Any loan above that threshold is jumbo and requires a different approval process.

Question 2

Can I get a jumbo loan on a property with acreage in Los Banos?

Accepted Answer

Yes, but lenders scrutinize rural and agricultural parcels closely. Appraisal and zoning issues are common hurdles on large-lot jumbo deals.

Question 3

Do jumbo loans require mortgage insurance?

Accepted Answer

Usually not. Most jumbo programs skip PMI but compensate with stricter credit and reserve requirements instead.

Question 4

How much down payment do I need for a jumbo loan?

Accepted Answer

Most jumbo lenders want 10–20% down. Some programs allow less, but expect tighter requirements and higher rates.

Question 5

Are jumbo rates higher than conventional rates?

Accepted Answer

Typically yes. Rates vary by borrower profile and market conditions, but jumbo loans usually price above conforming rates.

Question 6

Is a jumbo loan the only option for a high-value purchase?

Accepted Answer

Not always. A piggyback loan — splitting into two smaller loans — can sometimes keep both under conforming limits and reduce costs.

Jumbo Loans in Los Banos, CA — What You Need to Know