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in Lathrop, CA
Lathrop sits in San Joaquin County where home prices span a wide range. The loan you need depends entirely on your purchase price and how much you're putting down.
Conventional loans work for most buyers here. Jumbo loans kick in when your mortgage exceeds the conforming loan limit, which happens faster than many Lathrop buyers expect.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. These loans cap at the conforming limit, currently $806,500 for single-family homes in San Joaquin County.
You can put down as little as 3% with conventional financing. Credit requirements start at 620, though you'll get better rates with 700 or higher. PMI applies when you put down less than 20%.
Rates on conventional loans run lower than jumbo because lenders can sell them to Fannie and Freddie. That backing makes them less risky, which translates to savings for you.
Jumbo loans cover anything above $806,500. Lenders hold these loans on their own books instead of selling them, which means stricter requirements across the board.
Expect to put down at least 10%, though most lenders prefer 20% to avoid higher rates. Credit scores typically need to hit 700 minimum, and some lenders want 720 or better.
You'll also face tighter debt-to-income limits and larger cash reserve requirements. Most jumbo lenders want to see 6-12 months of mortgage payments sitting in your account after closing.
The conforming loan limit creates a hard line between these two programs. Buy a $750,000 home with 10% down and you're conventional. Buy an $850,000 home with the same down payment and you're jumbo.
Jumbo rates usually run 0.25% to 0.75% higher than conventional, though the gap narrows with strong credit and larger down payments. Rates vary by borrower profile and market conditions.
Documentation requirements get heavier with jumbo loans. You'll provide more bank statements, asset verification, and income documentation. Lenders scrutinize jumbo files harder because they're keeping the risk.
Your purchase price and down payment make this decision for you most of the time. If your loan amount stays under $806,500, conventional financing saves you money and hassle.
Jumbo becomes necessary when you're buying above that threshold. Focus on boosting your credit score and building reserves before you shop. A 740 score and 20% down unlock significantly better jumbo rates.
Some Lathrop buyers try to stay under the conforming limit by making larger down payments. Run the numbers both ways. Sometimes paying PMI on a conventional loan costs less than the rate premium on a jumbo.
Jumbo loans start at $806,501 in San Joaquin County. Anything at or below $806,500 qualifies as conventional.
Jumbo rates typically run 0.25% to 0.75% higher. The gap shrinks with excellent credit and 20% or more down.
Yes, putting more down keeps your loan amount under the conforming limit. This often saves money even with a larger upfront payment.
Most jumbo lenders skip PMI entirely. They handle lower down payments through higher rates or second mortgages instead.
Most lenders want 700 minimum, with 720 or higher unlocking better rates. Conventional loans start at 620.