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in Lincoln, CA
Lincoln's housing market spans starter homes under $600K and luxury properties pushing $2M. That range puts many buyers at the decision point between conventional and jumbo financing.
Conventional loans work up to the conforming limit of $806,500 in Placer County. Anything above that threshold requires jumbo financing with different rules and requirements.
Conventional loans follow standardized guidelines set by Fannie Mae and Freddie Mac. You can put down as little as 3%, though 5-20% is more common in competitive markets like Lincoln.
Rates are competitive because these loans get sold to government-sponsored entities. Credit requirements start at 620, but most approved borrowers have scores above 680. PMI applies if you put down less than 20%.
Jumbo loans finance properties above $806,500 in Placer County. Lenders keep these loans on their books instead of selling them, which means stricter requirements and some rate variability.
Most jumbo lenders want 10-20% down and credit scores of 700+. You'll need strong income documentation and cash reserves covering 6-12 months of payments. Debt-to-income ratios max out around 43% for most programs.
The conforming limit is the hard dividing line. Below $806,500, conventional loans offer easier qualification and lower down payments. Above that amount, you're in jumbo territory with tougher credit and reserve requirements.
Rates vary by borrower profile and market conditions. Jumbos used to cost more, but that gap has narrowed. The real difference now is qualification standards and how much cash you need at closing.
Your purchase price decides this for you in most cases. If the Lincoln home you want costs $750K, you're using a conventional loan. If it's $950K, you need jumbo financing regardless of qualification strength.
The interesting zone is $650K-$800K where you could go either way. Putting 20% down on a $900K property means borrowing $720K—still conventional. But that requires $180K cash, which some buyers would rather preserve by using 10% down jumbo at $810K borrowed.
Any loan above $806,500 is jumbo in Placer County. That's the 2024 conforming limit for this area.
Not always. The rate gap has closed significantly. Strong borrowers often get competitive jumbo rates.
Yes. If you keep the loan amount at $806,500 or below, you stay conventional regardless of purchase price.
Most lenders want 700+. Some programs accept 680 with compensating factors like larger down payments.
Typically 6-12 months of mortgage payments. Higher loan amounts often require more reserves.
Yes, but expect thorough income documentation. Two years of tax returns and strong cash flow are standard requirements.