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in San Jose, CA
San Jose real estate is expensive. Most properties here push buyers past conforming loan limits fast.
Knowing which loan fits your purchase price is the first decision. Get it wrong and you're either over-qualified or under-financed.
Conventional loans follow FHFA conforming limits. In Santa Clara County, that cap determines exactly how much you can borrow without going jumbo.
These loans work well for buyers with strong W-2 income and clean credit. Rates are competitive, and underwriting is predictable.
Jumbo loans kick in when your purchase price exceeds the conforming limit. In San Jose, that covers a large share of the market.
Lenders hold these loans on their own books. That means stricter standards — think 700+ credit, 12 months reserves, and larger down payments.
The biggest split is loan size. Conventional stays under the conforming cap. Jumbo goes above it — no ceiling.
HousingWire flagged that the 30-year fixed hit 6.57% recently, with applications dropping 10.4% week-over-week. Jumbo borrowers felt this harder — their rates don't track Fannie/Freddie benchmarks the same way. Rates vary by borrower profile and market conditions.
Reserves are another key gap. Conventional loans may require 2-6 months. Jumbo lenders commonly want 12. That's real cash staying liquid.
Buying under the conforming limit? Conventional is almost always the cleaner path. Lower reserves, easier qualification, more lender competition.
Buying above that line in San Jose — which happens constantly here — jumbo is your only option. The key is being prepared: strong credit, solid reserves, and documented income.
We shop jumbo across 200+ wholesale lenders. Pricing varies widely on these loans. Don't take the first offer.
Santa Clara County qualifies for high-cost area limits set by FHFA. Loans above that threshold require jumbo financing.
Some lenders allow 10% down on jumbo loans. Expect stricter credit and reserve requirements at lower down payment levels.
Not always. Jumbo rates can be competitive with conventional rates for top-tier borrowers. Rates vary by borrower profile and market conditions.
Conventional loans typically close faster. Jumbo underwriting involves more documentation and manual review, which adds time.
Yes. Most jumbo lenders want 700 or above. Conventional loans can go as low as 620 depending on the program.
Yes, but documentation rules are strict. Lenders typically want 2 years of reported rental income on tax returns.