Question 1

What is the conforming loan limit for Santa Clara County?

Accepted Answer

Santa Clara County qualifies for high-cost area limits set by the FHFA. Loans above that threshold are jumbo and follow different guidelines.

Question 2

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Jumbo rates depend on the lender's portfolio appetite. Some lenders price jumbo below conforming for borrowers with 760+ credit. Rates vary by borrower profile and market conditions.

Question 3

Can I put less than 20% down on a jumbo loan?

Accepted Answer

Some lenders allow 10-15% down on jumbo loans. Expect higher reserves and stricter credit requirements at those LTV levels.

Question 4

Which loan is easier to qualify for?

Accepted Answer

Conventional loans have more flexibility on DTI and credit. Jumbo approval demands stronger overall financial profiles across the board.

Question 5

Is PMI required on jumbo loans?

Accepted Answer

Most jumbo products don't require PMI. Lenders manage risk through larger down payments and reserve requirements instead.

Question 6

Can I use gift funds for a jumbo down payment?

Accepted Answer

Some jumbo lenders allow gift funds, but many require at least part of the down payment to come from your own assets. It depends on the lender.

Conventional vs Jumbo Loans in Campbell, CA