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in Lodi, CA
Most Lodi buyers choose conventional loans because home prices fall well below the $806,500 conforming limit. Jumbo loans only matter when you're buying above that threshold.
San Joaquin County has pockets where larger properties push past conforming limits. Knowing which loan type applies saves time and sets realistic rate expectations.
Conventional loans work for any purchase up to $806,500 in Lodi. You need 620 minimum credit and 3% down, though 20% down avoids mortgage insurance.
Lenders sell these loans to Fannie Mae or Freddie Mac, which keeps rates competitive. Documentation is standard: pay stubs, W-2s, two months of bank statements.
Jumbo loans fund anything above the conforming limit. In Lodi that means properties over $806,500, which typically includes large acreage or waterfront estates.
Lenders keep jumbo loans on their books instead of selling them. That adds risk, so they charge higher rates and require bigger down payments—usually 10% to 20%.
The bright line is $806,500. Below that, you're shopping conventional rates. Above it, you're dealing with stricter credit requirements and less competitive pricing.
Jumbo lenders want proof you can weather financial stress. Expect to show 6-12 months of reserves and higher credit scores than conventional guidelines require.
If your Lodi purchase is under $806,500, conventional wins every time. Lower rates, easier approval, smaller down payment requirements.
Jumbo only makes sense when you're buying above the limit. In that case, shop multiple lenders—jumbo rate spreads vary more than conventional.
$806,500 for single-family homes in 2024. Any mortgage above that amount requires a jumbo loan with different underwriting standards.
No. Once your loan amount crosses $806,500, it's a jumbo loan regardless of down payment size or equity position.
Jumbo loans never have PMI. You either put 20% down or you pay a higher rate, but there's no separate insurance premium.
Conventional loans close faster. Jumbo underwriting takes longer due to additional asset verification and reserve requirements.
Yes, but you'll need 15-25% down and pay higher rates. Jumbo investment loans require 25-30% down with even stricter guidelines.