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in Solana Beach, CA
Solana Beach straddles the line between conventional and jumbo loan territory. Most homes here push past the $806,500 conforming limit, forcing buyers to choose which financing path makes sense.
The right loan depends on your purchase price and how you want to structure your down payment. Each option carries different rates, requirements, and long-term costs that shift based on market conditions.
Conventional loans cap at $806,500 in San Diego County for 2024. You can put down as little as 3% with strong credit, though most brokers recommend 5% minimum to avoid PMI headaches.
These loans follow Fannie Mae and Freddie Mac guidelines. Approval is straightforward if you have W-2 income, 620+ credit, and debt ratios under 50%. Rates typically run 0.25-0.5% below jumbo rates.
The conforming loan structure means lenders can sell your mortgage easily. That liquidity keeps rates competitive and underwriting predictable for borrowers who fit the box.
Jumbo loans cover anything above $806,500. Most Solana Beach lenders want 10-20% down depending on loan size, with stricter guidelines kicking in above $2 million.
Credit requirements jump to 680-700 minimum for competitive rates. Lenders scrutinize reserves harder, typically requiring 6-12 months of payments in the bank after closing.
Jumbo rates carry a premium because lenders hold these loans in portfolio. But the gap has narrowed—sometimes you'll find jumbo rates only 0.125% higher than conforming with strong borrower profiles.
Down payment splits the two most clearly. Conventional allows 3-5% down while jumbo lenders push for 10-20%, especially on loans above $1.5 million. That's $40,000 versus $200,000 on a $1 million purchase.
Rate spreads fluctuate with market conditions. Right now the gap sits around 0.25-0.375% for strong borrowers. On a $900,000 loan, that's roughly $150-250 more per month for jumbo financing.
Reserve requirements matter more on jumbos. Conventional loans might ask for 2-3 months of payments banked. Jumbo underwriters want proof you can weather a job loss or market downturn with 6-12 months covered.
If your purchase price sits under $806,500, conventional wins on rate and flexibility. Put down 5%, avoid jumbo scrutiny, and keep more cash liquid for renovations or reserves.
Above that threshold, run the math on blended approaches. Some borrowers use conventional financing with a 10% down payment plus a second lien to avoid full jumbo underwriting. Others prefer one jumbo loan for simplicity.
For properties above $1.2 million, jumbo becomes your only path. Focus on building strong reserves and clean documentation. The rate premium matters less than structuring a loan that actually closes in Solana Beach's competitive market.
$806,500 for 2024 in San Diego County. Anything above that requires jumbo financing or creative loan structuring.
Yes, by putting 20% down and taking an $806,500 conventional first plus a second lien for the difference. Compare total costs against a straight jumbo loan.
Not always. Many lenders go to 10% down on loans under $1.5 million with strong credit and reserves. Expect higher rates below 20% down though.
Conventional loans typically close in 21-30 days. Jumbo loans take 30-45 days due to additional underwriting layers and reserve verification.
About 0.25-0.375% for well-qualified borrowers. Rates vary by borrower profile and market conditions, so lock timing affects your final rate.