Question 1

What is the conforming loan limit in Santa Clara County?

Accepted Answer

Santa Clara County qualifies for high-cost area limits set by the FHFA. Anything above that limit requires jumbo financing.

Question 2

Are jumbo rates higher than conventional rates?

Accepted Answer

Not always. Strong borrowers sometimes get jumbo rates at or below conforming. 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 payments in verified assets. Some require more depending on loan size.

Question 4

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

Accepted Answer

Some lenders allow 10% down on jumbo loans. Expect stricter credit and reserve requirements at lower down payments.

Question 5

Which loan is faster to close in Milpitas?

Accepted Answer

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

Question 6

Do both loan types offer adjustable rates?

Accepted Answer

Yes. Both conventional and jumbo loans offer ARM options. Jumbo borrowers sometimes prefer ARMs when fixed rates run high.

Conventional vs Jumbo Loans in Milpitas, CA