Question 1

What is the conforming loan limit in Santa Clara County?

Accepted Answer

The FHFA sets Santa Clara County's limit at $1,089,300 for a single-family home. Anything above that requires jumbo financing.

Question 2

Do jumbo loans always have higher rates than conventional?

Accepted Answer

Not always. Jumbo rates depend heavily on the lender and your profile. Rates vary by borrower profile and market conditions.

Question 3

How much do I need in reserves for a jumbo loan?

Accepted Answer

Most jumbo lenders want 12 months of mortgage payments in liquid reserves. Some require more for higher loan amounts.

Question 4

Can I put 10% down on a jumbo loan in Cupertino?

Accepted Answer

Some lenders allow 10% down on jumbo loans. Expect stricter credit and reserve requirements at that down payment level.

Question 5

Is PMI required on a jumbo loan?

Accepted Answer

Jumbo loans don't use traditional PMI. Lenders may price the risk into the rate or require a larger down payment instead.

Question 6

Which loan closes faster in Cupertino?

Accepted Answer

Conventional loans typically close faster. Jumbo underwriting is more involved and can add time to the process.

Conventional vs Jumbo Loans in Cupertino, CA