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in Mountain House, CA
Mountain House homes increasingly push past conventional loan limits. When your purchase price crosses $806,500 in San Joaquin County, you're shopping for a jumbo loan whether you planned to or not.
The difference isn't just loan size. Jumbo loans demand stronger financials and carry different rate structures than conventional mortgages, even when your credit is excellent.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with strong credit, though PMI applies below 20% equity.
Rates stay competitive because these loans sell easily on the secondary market. Most Mountain House buyers use conventional financing for properties under $800,000.
Credit requirements start at 620, but you'll want 680+ for the best rates. Debt-to-income ratios can stretch to 50% with compensating factors like cash reserves.
Jumbo loans cover purchase prices above $806,500 in San Joaquin County. They're portfolio loans, meaning lenders keep them rather than selling to Fannie or Freddie.
Expect stricter requirements across the board. Most lenders want 700+ credit and 10-20% down, though some programs allow less with strong compensation.
Rate pricing varies wildly between lenders on jumbo products. Shopping across multiple wholesale channels often saves borrowers 0.25-0.50% on rate, which compounds significantly on larger loan amounts.
The loan limit draws the hard line. Below $806,500, you qualify for conventional financing with easier approval standards and typically better rates.
Above that threshold, jumbo underwriting kicks in. You'll need larger reserves, lower debt ratios, and cleaner credit profiles than conventional borrowers.
Rates aren't always higher on jumbo loans. When the market inverts, jumbo rates sometimes beat conventional pricing, especially for borrowers with 740+ credit and 25% down.
Your purchase price makes the decision for you most of the time. Shopping for a home under $800,000 in Mountain House? Conventional financing gives you more flexibility and easier approval.
Buying above the conforming limit means jumbo territory. Make sure your credit is 700+, you have 6-12 months reserves, and your debt ratios stay under 43% to get approved without hassle.
One strategy: If you're borderline on the limit, a larger down payment can keep you in conventional territory. Putting down $100,000 instead of $50,000 on a $850,000 home drops your loan to $750,000 and opens up conventional financing.
Jumbo loans start above $806,500 in San Joaquin County. That's the 2025 conforming loan limit for this area.
Not always. Jumbo rates sometimes price better than conventional, especially for borrowers with strong credit and large down payments.
Some lenders allow 10% down on jumbo loans with 720+ credit and strong reserves. Most prefer 15-20% down for best pricing.
Yes. Most jumbo lenders want 700+ credit, while conventional loans start at 620 minimum.
Expect to show 6-12 months of full housing payments in liquid reserves. Higher loan amounts require more reserves.