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in Los Gatos, CA
Los Gatos real estate runs expensive. Most buyers here face a quick choice: stay within conforming limits or go jumbo.
The wrong loan costs you money. Knowing the difference between conventional and jumbo is the first step to a smarter offer.
Conventional loans follow FHFA conforming limits. In Santa Clara County, that cap sits well above the national baseline — but still below many local list prices.
These loans offer strong rates for borrowers with good credit. Put 20% down and you skip private mortgage insurance entirely.
W-2 earners with clean tax returns close these fast. Underwriting is straightforward, and most lenders price them competitively.
Jumbo loans kick in above the conforming limit. In Los Gatos, that means most detached single-family purchases will land here.
Lenders hold these loans on their own books. That means tighter standards — typically 700+ credit, 12 months reserves, and full income docs.
Rates can run close to conventional, sometimes even below. But the qualification bar is meaningfully higher across the board.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Los Gatos.
Los Gatos real estate runs expensive. Most buyers here face a quick choice: stay within conforming limits or go jumbo.
The wrong loan costs you money. Knowing the difference between conventional and jumbo is the first step to a smarter offer.
Conventional loans follow FHFA conforming limits. In Santa Clara County, that cap sits well above the national baseline — but still below many local list prices.
The biggest gap is loan size. Conventional tops out at the conforming limit. Jumbo starts right above it — no overlap.
HousingWire flagged the 30-year fixed hitting 6.57% with application volume dropping 10.4% week-over-week as of early April 2026. Jumbo rates have tracked similarly. Rates vary by borrower profile and market conditions.
Reserves are the hidden hurdle on jumbo. Conventional lenders may ask for two months. Jumbo lenders routinely want six to twelve.
If the purchase price fits under the conforming limit, go conventional. You'll close faster and face fewer reserve hurdles.
Buying above the limit — which describes most Los Gatos transactions — means jumbo is your only path. Make sure your credit and reserves are solid before you apply.
Self-employed buyers with variable income should prep two years of returns and 12 months of bank statements before approaching any jumbo lender.
Santa Clara County qualifies for a high-cost conforming limit set by the FHFA. Any loan above that limit requires jumbo financing.
Not always. Jumbo rates can be close to or below conventional rates depending on the lender and your credit profile. Rates vary by borrower profile and market conditions.
Most jumbo lenders want 6 to 12 months of mortgage payments in liquid reserves. Some programs push that higher on larger loan amounts.
Some lenders allow 10–15% down on jumbo loans. Expect tighter credit requirements and higher rates at those down payment levels.
Conventional loans typically close faster. Jumbo underwriting involves more documentation and manual review, which adds time.
Yes, but jumbo lenders scrutinize self-employed income more closely. Two years of full returns and year-to-date P&L statements are standard.