Question 1

Can I use a conventional loan for an $800,000 purchase in Murrieta?

Accepted Answer

Yes, $800,000 falls below the $832,750 conforming limit for Riverside County. You'll need at least 3% down and 620 credit for conventional approval.

Question 2

What credit score do I need for a jumbo loan in Murrieta?

Accepted Answer

Most jumbo lenders require 700+ credit scores. Some allow 680 with compensating factors like 20% down or higher reserves.

Question 3

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Jumbo rates can be competitive or even lower depending on your profile and market conditions. Rates vary by borrower profile and market conditions.

Question 4

How much should I have in reserves for a jumbo loan?

Accepted Answer

Expect 6-12 months of mortgage payments in liquid reserves after closing. That's principal, interest, taxes, insurance, and HOA if applicable.

Question 5

Can I avoid PMI with less than 20% down on conventional?

Accepted Answer

No. Conventional loans require PMI below 20% down. You can cancel it once you reach 20% equity through payments or appreciation.

Conventional vs Jumbo Loans in Murrieta: Which Fits Your Price Range?