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in Auburn, CA
Auburn sits in the Gold Country foothills where home values vary widely. A historic downtown Victorian might stay under conforming limits while hillside estates in rural Placer County often exceed them.
The loan you need depends entirely on your purchase price. Conventional loans cover most Auburn properties, but homes over the conforming limit require jumbo financing with stricter requirements.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. In Placer County, the 2024 conforming limit is $766,550 for single-family homes, covering most Auburn purchases.
You can put down as little as 3% with conventional financing. PMI applies under 20% down but drops off once you hit that equity threshold, unlike government loans where it sticks around.
Credit score minimums start at 620, though you'll get better rates at 740 plus. Debt-to-income ratios cap at 50% in most cases, giving you reasonable flexibility on income requirements.
Jumbo loans finance Auburn properties over $766,550. Think estate homes in Bell Road areas or larger parcels near Highway 49 where land values push prices higher.
Expect to put down at least 10%, though 20% is more common. Lenders want bigger cash reserves too, typically six to twelve months of payments sitting in the bank after closing.
Credit requirements jump significantly. Most jumbo lenders want 700 minimum, with 740 preferred for competitive rates. Debt ratios tighten to 43% in many programs, and income documentation gets more thorough.
The loan limit divide is absolute. At $766,550 you're conventional. At $766,551 you're jumbo with completely different underwriting standards, even though the properties might sit on the same street.
Jumbo rates used to run higher, but that gap has narrowed. Still, jumbo loans require more documentation and stricter debt ratios because lenders hold the risk instead of selling to Fannie or Freddie.
Cash reserves make the biggest practical difference. Conventional might need two months of payments in the bank. Jumbo lenders want proof you can weather a year of unemployment without missing payments.
Your purchase price decides this for you. Buying under $766,550 means conventional. Shopping above that threshold requires jumbo financing regardless of your qualifications.
If you're near the boundary, consider it carefully. A $770,000 home triggers jumbo requirements that might strain your approval. A $760,000 home with the same features stays conventional with easier qualifying.
Auburn's market gives you options at both levels. Downtown properties and standard subdivisions typically stay conventional. Rural acreage estates and newer construction on larger lots often push into jumbo territory.
Any loan over $766,550 for a single-family home counts as jumbo in Placer County. That limit applies countywide regardless of specific Auburn neighborhoods.
No. If the loan amount exceeds $766,550, it's jumbo regardless of down payment size. A $900,000 purchase with $200,000 down still creates a $700,000 conventional loan.
Not anymore. Jumbo rates often match or beat conventional rates for well-qualified borrowers with strong credit and substantial down payments. Rates vary by borrower profile and market conditions.
Most jumbo lenders require 700 minimum, with 740 getting you the best rates. Conventional loans start at 620 but also reward higher scores with better pricing.
Expect six to twelve months of mortgage payments in liquid reserves after closing. Conventional loans typically need only two to six months depending on down payment size.