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in Rialto, CA
Most Rialto buyers land in conventional territory. But if you're eyeing a higher-priced property, jumbo financing enters the picture.
The split comes down to one number: the conforming loan limit. Cross it, and you're in jumbo land with different rules entirely.
Conventional loans aren't backed by the government. Fannie Mae and Freddie Mac buy them, which keeps rates competitive for strong borrowers.
You'll need at least a 620 credit score. Put down 20% and you skip private mortgage insurance (PMI) entirely.
Jumbo loans finance properties above the FHFA conforming limit. No government agency backs them — lenders take on the full risk.
Because of that risk, lenders get strict. Expect higher credit score requirements, larger reserves, and a bigger down payment.
The biggest gap is underwriting toughness. Conventional loans follow standard Fannie/Freddie guidelines. Jumbo lenders write their own rules.
Rates matter too. HousingWire flagged the 30-year fixed hitting 6.57% recently — jumbo rates can run higher or lower depending on the lender. Rates vary by borrower profile and market conditions.
Debt-to-income limits are tighter on jumbo loans. Most jumbo lenders want your DTI under 43%. Some cap it at 38%.
If your loan amount stays under the conforming limit, conventional is almost always the cleaner path. Easier approval, more lender competition.
Jumbo makes sense when the property value genuinely demands it. Don't stretch into jumbo territory without strong credit, solid reserves, and stable income.
At SRK CAPITAL, we shop across 200+ wholesale lenders. That matters most on jumbo — lender overlays vary wildly and one lender's denial is another's approval.
The FHFA sets conforming limits annually. Any loan above that limit in San Bernardino County is classified as jumbo.
Some jumbo lenders allow 10% down. Expect tighter credit and reserve requirements the lower your down payment goes.
Not always. Jumbo rates fluctuate by lender. Rates vary by borrower profile and market conditions — shopping multiple lenders is critical.
Most conventional loans require a 620 minimum. Better rates kick in at 740 and above.
Most jumbo lenders want 6 to 12 months of mortgage payments in liquid reserves after closing.
Yes, but documentation requirements are heavier. Expect two years of tax returns and detailed income verification.