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in Colfax, CA
Colfax sits in the Sierra foothills where property values vary widely. A cabin on acreage might stay under conforming limits while a newer estate could push into jumbo territory.
The loan type you need depends entirely on your purchase price. Conventional loans cap at $806,500 in Placer County for 2025, while jumbo loans cover anything above that threshold.
Conventional loans work for most Colfax buyers staying under $806,500. You can put down as little as 3% with PMI or 20% to avoid it entirely.
Approval is straightforward with W-2 income and 620+ credit. Rates are competitive because Fannie Mae and Freddie Mac buy these loans on the secondary market.
You'll find the most lender options here. We can shop 200+ wholesale lenders to find the best rate and terms for your profile.
Jumbo loans fund purchases above $806,500 in Placer County. These loans don't get sold to Fannie or Freddie, so lenders hold them in portfolio or sell to private investors.
Approval standards are stricter. Most lenders want 700+ credit, 10-20% down, and significant reserves—often 6-12 months of mortgage payments in the bank.
Rates run close to conventional now, sometimes even lower on large balances. The real difference shows up in documentation and borrower requirements.
Credit and reserves separate these loans more than rates. Conventional approves at 620 credit with minimal reserves, while jumbo typically requires 700+ and substantial cash cushion.
Down payment requirements shift too. Conventional allows 3% down; jumbo starts at 10% and many lenders prefer 20% to avoid higher rates or stricter overlays.
The biggest operational difference: conventional loans have standard automated underwriting through DU or LP. Jumbo underwriting involves more manual review and lender-specific guidelines.
Your purchase price decides this for you. Under $806,500 means conventional. Above that threshold means jumbo, no choice involved.
If you're close to the limit, consider staying under to access conventional terms. An $820,000 purchase might not justify the stricter jumbo requirements compared to finding something at $795,000.
For buyers committed to properties above the limit, focus on building your credit to 720+ and banking reserves before you shop. Jumbo underwriting scrutinizes everything more closely than conventional.
$806,500 for 2025. Anything above requires a jumbo loan regardless of property type or location within the county.
Not anymore. Jumbo rates often match or beat conventional rates, especially on larger loan amounts with strong borrower profiles.
Some lenders allow it, but expect higher rates or mortgage insurance. 20% down gets you the best jumbo pricing.
Conventional approves at 620 minimum. Jumbo typically requires 700+, with best rates starting at 740.
Most want 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts may require more.