Question 1

What's the conforming loan limit in Palo Alto?

Accepted Answer

$806,500 for 2025. Any loan above that amount is considered jumbo and follows different underwriting rules.

Question 2

Do jumbo loans always have higher rates?

Accepted Answer

Not anymore. Strong borrowers with 20%+ down often see jumbo rates match or beat conventional rates from competing lenders.

Question 3

Can I avoid jumbo requirements on a $1M home?

Accepted Answer

Yes, with 20% down. Finance $800K as conventional, skip PMI, and avoid jumbo underwriting standards entirely.

Question 4

What credit score do I need for a jumbo loan?

Accepted Answer

Most lenders want 700+, though some approve at 680 with strong compensating factors like high income or large reserves.

Question 5

How much should I have in reserves for a jumbo loan?

Accepted Answer

Expect 12+ months of mortgage payments in liquid assets. Some lenders require more for loan amounts above $2 million.

Conventional vs Jumbo Loans in Palo Alto: Which Fits Your Price Range?