Question 1

What is the conforming loan limit in Santa Clara County?

Accepted Answer

Santa Clara County qualifies for a high-cost conforming limit set by the FHFA. Any loan above that limit requires jumbo financing.

Question 2

Are jumbo rates higher than conventional rates?

Accepted Answer

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.

Question 3

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

Accepted Answer

Most jumbo lenders want 6 to 12 months of mortgage payments in liquid reserves. Some programs push that higher on larger loan amounts.

Question 4

Can I get a jumbo loan with less than 20% down?

Accepted Answer

Some lenders allow 10–15% down on jumbo loans. Expect tighter credit requirements and higher rates at those down payment levels.

Question 5

Which loan closes faster in Los Gatos?

Accepted Answer

Conventional loans typically close faster. Jumbo underwriting involves more documentation and manual review, which adds time.

Question 6

Do both loans allow self-employed borrowers?

Accepted Answer

Yes, but jumbo lenders scrutinize self-employed income more closely. Two years of full returns and year-to-date P&L statements are standard.

Conventional vs Jumbo Loans in Los Gatos, CA