Question 1

What is the conforming loan limit in Monterey County?

Accepted Answer

The FHFA sets conforming limits annually for each county. Any loan above that limit in Monterey County requires jumbo financing.

Question 2

Do jumbo loans have higher interest rates than conventional?

Accepted Answer

Not always. Jumbo rates vary by lender and borrower profile. Rates vary by borrower profile and market conditions.

Question 3

What credit score do I need for a jumbo loan?

Accepted Answer

Most jumbo lenders want 700 or higher. Some go to 720 for larger loan amounts or lower down payments.

Question 4

Can I put less than 20% down on a conventional loan?

Accepted Answer

Yes. Conventional loans allow as little as 3% down. You'll pay PMI until you reach 20% equity.

Question 5

How many months of reserves does a jumbo loan require?

Accepted Answer

Most jumbo lenders require 12 months of reserves. Some programs ask for more depending on loan size.

Question 6

Which loan type is faster to close?

Accepted Answer

Conventional loans typically close faster. Jumbo underwriting takes longer because each lender uses its own process.

Conventional vs Jumbo Loans in King City, CA