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in Grass Valley, CA
Grass Valley's housing market spans historic Victorians downtown to sprawling mountain properties, creating a wide price range. Your loan type depends entirely on whether your purchase price exceeds conforming limits.
The 2025 conforming loan limit for Nevada County is $806,500 for single-family homes. Cross that threshold and you're in jumbo territory with different rules.
Conventional loans work for most Grass Valley purchases under $806,500. You'll need 620+ credit and typically 3-5% down, though 20% avoids PMI.
These loans follow Fannie Mae and Freddie Mac guidelines, which means standardized underwriting. Lenders price them competitively because they can sell the loans on the secondary market.
Jumbo loans fund Grass Valley properties above $806,500—common in areas like Lake of the Pines or larger acreage parcels. Credit requirements start at 680, often 700+ for best rates.
Lenders hold these loans in portfolio, which means stricter scrutiny. Expect 10-20% down, lower debt ratios, and 6-12 months cash reserves depending on loan size.
Credit and cash reserves separate these loans more than rates. Conventional accepts 620 credit and minimal reserves; jumbo demands 700+ and proof you can cover 6-12 months of payments.
Down payment flexibility matters too. Conventional allows 3% down with PMI. Jumbo typically requires 10% minimum, 20% for best pricing. Rates vary by borrower profile and market conditions.
Buy under $806,500 and conventional wins on ease and cost. You'll qualify faster, put less down, and pay slightly better rates in most scenarios.
Shopping above the limit? Jumbo is your only option, but prepare documentation early. I see Grass Valley buyers surprised by reserve requirements—lenders want to see liquidity beyond your down payment and closing costs.
$806,500 for single-family homes in Nevada County. One dollar over requires jumbo financing with different approval standards.
Yes, but expect higher rates and stricter reserve requirements. 20% down unlocks better pricing and easier approval.
Not always. Borrowers with 740+ credit and 25% down often see jumbo rates competitive with conventional. Rates vary by borrower profile.
Minimum 620, but 680+ gets better rates. Most lenders price aggressively at 740 and above.
Typically 6-12 months of mortgage payments in liquid assets. Larger loan amounts push toward the 12-month requirement.