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in Loomis, CA
Loomis sits in a price zone where many buyers cross the conforming loan limit. Properties here range from modestly priced homes to estate-sized parcels in neighborhoods like High Hand and Franklin Ranch.
The loan you need depends on your purchase price. Below $766,550, conventional loans offer the best rates and terms. Above that threshold, you need a jumbo loan with different rules.
Conventional loans work for purchase amounts up to $766,550 in Placer County. They allow down payments as low as 3% for first-time buyers and 5% for repeat buyers. PMI drops off automatically at 78% loan-to-value.
These loans follow Fannie Mae and Freddie Mac guidelines. Credit scores of 620 qualify, though you get better pricing at 740+. Debt-to-income ratios can go up to 50% with strong compensating factors.
Jumbo loans finance amounts above $766,550 with no upper limit. Most lenders require 10-20% down depending on loan size. The larger the loan amount, the more cash you need upfront.
Approval standards are tighter than conventional. Credit scores typically need to be 700+ for competitive rates. Lenders cap DTI at 43% and require 6-12 months of reserves in the bank after closing.
The rate spread between these loan types has narrowed. Jumbo rates now often match or beat conventional rates because jumbo borrowers default less. But approval requirements stay much stricter on the jumbo side.
Documentation is more intensive for jumbo loans. Lenders verify every income source and scrutinize large deposits. Conventional loans follow automated underwriting systems that approve most clean files quickly.
Choose conventional if your Loomis purchase stays under $766,550. You get faster approvals, lower down payment options, and easier qualification standards. This covers most single-family homes in town.
You need jumbo financing for larger properties and estate parcels. Plan for larger down payments and stricter income verification. If you have strong credit and significant reserves, jumbo rates can actually beat conventional pricing.
$766,550 for 2024. Placer County qualifies as a high-cost area, so the limit exceeds the baseline $726,200 standard limit.
Not anymore. Jumbo rates often match or beat conventional rates because jumbo borrowers default less frequently.
No. Loan type depends on purchase price, not loan amount. A $900,000 purchase requires jumbo financing regardless of down payment size.
Most lenders require 700 minimum. You get best pricing at 740+. Conventional loans approve scores as low as 620.
Expect 6-12 months of mortgage payments in liquid reserves. Larger loan amounts require more months of reserves.