Question 1

What is the conforming loan limit in San Luis Obispo County?

Accepted Answer

Conforming loan limits vary by county and change annually. Contact SRK CAPITAL for current limits in San Luis Obispo County to determine whether you need conventional or jumbo financing.

Question 2

Can I get a jumbo loan with less than 20% down?

Accepted Answer

Yes, some lenders offer jumbo loans with 10% down. However, larger down payments typically secure better rates and terms. Your credit score and financial reserves also impact approval.

Question 3

Do jumbo loans always have higher interest rates?

Accepted Answer

Not always. Rates vary by borrower profile and market conditions. Well-qualified jumbo borrowers sometimes receive rates comparable to or better than conventional loan rates.

Question 4

Can I avoid PMI on a conventional loan?

Accepted Answer

Yes, putting 20% or more down eliminates private mortgage insurance on conventional loans. Some lenders also offer lender-paid PMI options with slightly higher rates.

Question 5

How much in reserves do jumbo lenders require?

Accepted Answer

Most jumbo lenders want 6-12 months of mortgage payments in liquid reserves after closing. Requirements vary by loan amount, down payment, and credit profile.

Conventional vs Jumbo Loans in San Luis Obispo: Which Mortgage Fits Your Budget?