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 FHFA. Loans above that threshold require jumbo financing.

Question 2

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 payment levels.

Question 3

Are jumbo rates always higher than conventional?

Accepted Answer

Not always. Jumbo rates can be competitive with conventional rates for top-tier borrowers. Rates vary by borrower profile and market conditions.

Question 4

Which loan is faster to close in San Jose?

Accepted Answer

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

Question 5

Do jumbo loans require a higher credit score?

Accepted Answer

Yes. Most jumbo lenders want 700 or above. Conventional loans can go as low as 620 depending on the program.

Question 6

Can I use rental income to qualify for a jumbo loan?

Accepted Answer

Yes, but documentation rules are strict. Lenders typically want 2 years of reported rental income on tax returns.

Conventional vs Jumbo Loans in San Jose