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in Truckee, CA
Truckee's real estate straddles a critical line. Many mountain homes exceed conforming loan limits, pushing buyers into jumbo territory whether they expect it or not.
The 2024 conforming limit for Nevada County is $766,550. Properties above that need jumbo financing, which changes approval requirements and pricing substantially.
Conventional loans work for Truckee properties under $766,550. You can put down as little as 3% with strong credit, though 20% avoids PMI and improves your rate.
These loans follow standard Fannie Mae guidelines. DTI caps at 50% in most cases. Credit score minimums start at 620, but you need 740+ for best pricing on mountain properties.
Conventional financing offers the fastest approval path. Fewer overlays than jumbo loans mean less documentation and simpler underwriting for eligible properties.
Jumbo loans finance Truckee homes above $766,550. Most mountain properties fall into this category, making jumbo the default option for serious buyers here.
Expect stricter standards. Minimum down payment hits 10-20% depending on loan size. Credit scores need to be 700+, realistically 740+ for competitive rates.
Reserve requirements separate jumbo from conventional. Lenders want 6-12 months of payments in the bank after closing. Second homes require larger reserves than primary residences.
Jumbo loans price competitively despite higher risk. Rates often match or beat conventional on strong borrower profiles because portfolio lenders compete aggressively in this space.
Down payment splits the two cleanly. Conventional allows 3% down for qualified buyers. Jumbo demands 10% minimum, often 20% for properties over $1.5 million.
Reserve requirements hit jumbo borrowers hard. Conventional loans rarely require specific reserves. Jumbo lenders want proof you can weather 6-12 months without income, more for vacation properties.
Documentation goes deeper on jumbo files. Two years of tax returns, full asset sourcing, and employment verification letters are standard. Conventional loans rely more on automated underwriting with less manual review.
Rates vary by borrower profile and market conditions. Jumbo rates can beat conventional when you have excellent credit and substantial assets, but weaker profiles pay a premium.
Your purchase price decides this for you in most cases. Properties under $766,550 get conventional financing. Everything above that needs jumbo approval.
If you're near the line, structure matters. Putting 20% down on a $950,000 property creates a $760,000 loan—just under conforming limits. That saves money versus a jumbo at 10% down.
Jumbo loans suit buyers with strong financial profiles. If you have 740+ credit, low DTI, and substantial reserves, jumbo rates compete well. Weaker profiles should maximize down payment to stay conventional.
Truckee's market leans jumbo by default. Plan for stricter approval standards and keep 12 months reserves liquid, especially for second homes or investment properties in the area.
$766,550 for single-family homes in Nevada County. Loans above this amount require jumbo financing with different approval standards.
Yes, but you need 740+ credit and strong reserves. Most lenders prefer 15-20% down on Truckee properties above $1 million.
Not always. Strong borrowers often get competitive jumbo rates. Rates vary by borrower profile and market conditions.
Expect 6-12 months of payments in the bank after closing. Second homes require reserves on the high end of that range.
Sometimes. If 20% down keeps you under $766,550, conventional financing offers easier approval and lower reserve requirements.