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in Lemon Grove, CA
Most Lemon Grove buyers use conventional loans because home prices stay below conforming limits. But some neighborhoods push past that threshold, triggering jumbo loan requirements.
The line between these two sits at $806,500 for San Diego County in 2025. Cross that number and your loan options change fast.
Conventional loans work for homes under the conforming limit. You can put down as little as 3% with mortgage insurance.
Lenders like these because Fannie Mae and Freddie Mac back them. That means better rates and easier approval than jumbo.
Credit scores start at 620, though you'll get better pricing at 740+. Rates vary by borrower profile and market conditions.
Jumbo loans kick in above $806,500 in San Diego County. Lenders take more risk, so they demand stronger borrower profiles.
Expect to put down 10-20% minimum. Credit scores usually need to hit 700, though some lenders go lower with compensating factors.
These loans don't get sold to Fannie or Freddie. Each lender sets their own rules, which means more flexibility on some terms but stricter standards overall.
Down payment splits them hard. Conventional lets you start at 3%, while jumbo usually wants 10% minimum.
Rates run higher on jumbo loans because lenders can't offload the risk. The spread varies, but expect to pay 0.25-0.75% more.
Reserves matter more with jumbo. Many lenders want 6-12 months of payments in the bank after closing, not just enough to close.
Debt-to-income ratios get tighter too. Conventional maxes at 50% DTI in some cases, but jumbo lenders often cap at 43%.
If your Lemon Grove purchase stays under $806,500, conventional wins every time. Lower rates, smaller down payment, easier approval.
Cross that line and jumbo becomes your only choice. Make sure you have strong credit, solid income docs, and cash reserves before you shop.
Some buyers split the difference with a piggyback loan—conventional first plus a second mortgage to avoid jumbo territory. That works if you have 10%+ down and want to dodge jumbo pricing.
$806,500 for San Diego County in 2025. Anything above that amount requires a jumbo loan.
Yes, some lenders approve 10% down on jumbo loans. Expect higher rates and stricter credit requirements than 20% down.
Usually, yes. Jumbo rates run 0.25-0.75% higher because lenders hold the risk instead of selling to Fannie or Freddie.
Conventional starts at 620, but 740+ gets best pricing. Jumbo typically requires 700 minimum with most lenders.
Yes. Put enough down to keep the loan amount under $806,500 and you stay in conventional territory with better rates.
No. Jumbo loans don't use PMI, but the higher rates and down payment requirements offset that benefit.