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in Ripon, CA
Most Ripon buyers use conventional loans because they fit within conforming limits. But if you're buying above $806,500 in 2025, you need a jumbo loan.
The jump from conventional to jumbo changes everything: rates, down payments, credit requirements. We'll show you exactly where the line falls and what it costs to cross it.
Conventional loans in Ripon work for properties up to $806,500. You can put down as little as 3% if you're a first-time buyer, though 5-20% is standard.
These loans get sold to Fannie Mae or Freddie Mac, which means lenders follow standardized guidelines. Minimum credit score is 620, but you'll get better rates above 740.
PMI costs 0.3-1.5% annually if you put down less than 20%. You can drop it once you hit 20% equity through payments or appreciation.
Jumbo loans cover anything above $806,500 in San Joaquin County. Most lenders want 10-20% down, though some allow 10% on strong profiles.
Because these loans don't get sold to Fannie or Freddie, each lender sets their own rules. Expect minimum 700 credit scores and clean financials.
You'll need 6-12 months of reserves in the bank after closing. Income verification is stricter than conventional—no exceptions for borderline debt ratios.
The biggest split is down payment and reserves. Conventional lets you in at 3-5% down with minimal reserves. Jumbo demands 10-20% down plus half a year of mortgage payments sitting in savings.
Rates on jumbos run 0.25-0.75% higher than conventional, though the gap shrinks when you put 20%+ down. Credit scores matter more—a 680 might fly on conventional but kills your jumbo rate.
Debt-to-income ratios cap at 43% for conventional through automated underwriting. Jumbo lenders often want 36-38% or lower, especially if you're near the minimum down payment.
If you're buying under $806,500 in Ripon, conventional wins every time. Lower rates, easier approval, less cash needed upfront. No reason to complicate it.
Above that limit, jumbo is your only conforming option. Make sure you have 20% down and strong credit to get competitive rates. Rates vary by borrower profile and market conditions.
Some borrowers use a conventional first at $806,500 and a second mortgage for the difference. That works if you want to avoid jumbo underwriting, but you'll pay higher rates on the second lien.
The limit is $806,500 for single-family homes. Anything above that requires a jumbo loan unless you use a second mortgage.
Yes, put down 20% or more at purchase. You can also drop PMI later once you reach 20% equity through payments or appreciation.
Usually yes, by 0.25-0.75%. But with 20%+ down and 760+ credit, the gap shrinks and sometimes jumbos price competitively.
Most lenders require 700 minimum. You'll see the best rates at 740 or higher with strong reserves and low debt ratios.
Yes, this avoids jumbo underwriting. You keep the conventional first at $806,500 and add a second lien for the rest at a higher rate.
Expect 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts and lower down payments push reserves toward 12 months.