Question 1

What credit score do I need for a conventional loan in Hillsborough?

Accepted Answer

Minimum is 620, but you need 700+ to get approved on high-balance amounts. Rates improve significantly above 740, which saves thousands annually on million-dollar loans.

Question 2

How much down payment is required?

Accepted Answer

Conventional loans allow 3% down, but Hillsborough buyers typically put 20-30% to avoid PMI and secure better rates. Jumbo lenders above conforming limits expect at least 20%.

Question 3

Do I need a jumbo loan for Hillsborough real estate?

Accepted Answer

Most properties here exceed the conforming loan limit around $806,500. Anything above that requires jumbo conventional financing, which has stricter credit and reserve requirements.

Question 4

How long does conventional loan approval take?

Accepted Answer

Expect 30-45 days from application to closing. Appraisals take 3-4 weeks in Hillsborough due to limited comparable sales, so start the process early.

Question 5

Should I choose a fixed rate or ARM in this market?

Accepted Answer

ARMs save 0.375-0.5% on rates compared to 30-year fixed. A 7/1 ARM works well if you plan to move or refinance within seven years, which most Hillsborough buyers do.

Question 6

Can self-employed borrowers get conventional loans?

Accepted Answer

Yes, with two years of tax returns showing stable income. If your returns don't reflect full earnings, bank statement programs exist but cost 1-1.5% more in rate.

Conventional Loans in Hillsborough: Premium Financing for High-Value Properties