Question 1

What's the loan limit where I switch from conventional to jumbo?

Accepted Answer

In San Mateo County, conventional loans cap at $806,500 as of February 2026. Anything above that requires jumbo financing.

Question 2

Can I avoid PMI with less than 20% down on either loan?

Accepted Answer

No on conventional — you pay PMI until 78% LTV. Jumbo never charges PMI but requires larger down payments and compensates with higher rates.

Question 3

Which loan type has stricter income requirements?

Accepted Answer

Jumbo loans cap debt ratios around 43% and scrutinize income sources heavily. Conventional allows 50% DTI and accepts varied income types more easily.

Question 4

Do jumbo loans always have higher interest rates?

Accepted Answer

Usually, yes. Lenders hold jumbo loans in portfolio instead of selling them, which increases their risk and pushes rates up 0.25-0.75% typically.

Question 5

How much cash should I have saved for a jumbo loan?

Accepted Answer

Expect to show 6-12 months of mortgage payments in reserves after closing. That's on top of your down payment and closing costs.

Question 6

Can I use a conventional loan for a high-priced South San Francisco condo?

Accepted Answer

Only if the purchase price stays under $806,500. Most condos here push past that limit, forcing jumbo financing even on smaller units.

Conventional vs Jumbo Loans in South San Francisco: Which Fits Your Budget?