Question 1

What's the exact jumbo loan limit in Morro Bay?

Accepted Answer

San Luis Obispo County uses the standard $806,500 conforming limit. Anything above requires a jumbo loan.

Question 2

Can I avoid jumbo with a bigger down payment?

Accepted Answer

No. If the purchase price exceeds $806,500, you need jumbo regardless of down payment size.

Question 3

Do jumbo loans work for coastal properties?

Accepted Answer

Yes. Lenders underwrite Morro Bay coastal homes regularly. Flood insurance and geology matter more than loan type.

Question 4

Which loan type offers better rates right now?

Accepted Answer

Conventional rates run lower, but jumbo rates at 760+ credit come within 0.125%. Rates vary by borrower profile and market conditions.

Question 5

How much reserves do I need for each loan?

Accepted Answer

Conventional typically requires 2-6 months. Jumbo lenders want 6-12 months post-closing reserves as standard.

Conventional vs Jumbo Loans in Morro Bay: Which Fits Your Coastal Property Purchase?