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in Hollister, CA
Hollister sits in a unique market position where some properties fall under conforming limits while others push into jumbo territory. The conforming loan limit for San Benito County determines which loan type you'll need.
Most Hollister buyers start with conventional financing. But if you're looking at higher-value homes or properties with acreage, you'll cross into jumbo loan territory and face different qualification rules.
Conventional loans work for properties under the conforming limit, which is $806,500 for single-family homes in San Benito County in 2025. You can put down as little as 3% with standard credit requirements starting around 620.
These loans follow Fannie Mae and Freddie Mac guidelines. PMI applies when you put down less than 20%, but you can cancel it once you hit 20% equity. Most borrowers get approved with debt-to-income ratios up to 50%.
Jumbo loans fund any amount above $806,500 with no upper limit. Lenders price these individually since they can't sell them to Fannie or Freddie, which means stricter qualification standards across the board.
Expect minimum credit scores around 700 and down payments starting at 10-20% depending on loan size. Lenders want lower debt ratios, typically 43% or less, and they'll scrutinize reserves more carefully than with conventional loans.
The loan limit is the obvious divider, but qualification standards shift dramatically once you cross into jumbo territory. Jumbo lenders want stronger financial profiles because they hold more risk without government backing.
Rates vary by borrower profile and market conditions. Jumbo rates sometimes match or beat conventional rates for well-qualified borrowers, but expect higher costs if your credit or reserves are borderline. Conventional loans offer more flexibility on debt ratios and down payments.
Your property price makes the initial decision. If you're under $806,500, conventional wins on flexibility and lower barriers to entry. Above that threshold, jumbo is your only conforming option unless you make a massive down payment.
Strong financial profiles get better jumbo terms. If you have 740+ credit, substantial reserves, and low debt ratios, jumbo loans work smoothly. Borderline qualifications? Stay under the conforming limit if possible to access easier approval standards.
Any loan above $806,500 for a single-family home in San Benito County is jumbo. That's the 2025 conforming loan limit for this area.
Yes. If you're buying a $900,000 home, putting down $100,000 keeps your loan at $800,000, which stays conventional and avoids jumbo requirements.
Not always. Strong borrowers often get competitive jumbo rates. Rates vary by borrower profile and market conditions, so compare both options.
Conventional loans start around 620 credit score. Jumbo loans typically require 700 minimum, with better terms at 740 and above.
Yes, but jumbo lenders scrutinize rural properties more closely. Conventional loans handle standard rural homes easily within the conforming limit.