Question 1

What are the current conforming loan limits in Santa Clara County?

Accepted Answer

Conforming limits change annually and vary by county. Contact a local mortgage broker for current Santa Clara County limits, as they're higher than standard limits due to area home prices.

Question 2

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

Accepted Answer

Some lenders offer jumbo loans with 10-15% down for highly qualified borrowers. Expect stricter requirements and potentially higher rates with smaller down payments.

Question 3

Are jumbo loan interest rates higher than conventional rates?

Accepted Answer

Not always. Rates vary by borrower profile and market conditions. Strong borrowers often secure competitive jumbo rates comparable to or even below conventional rates.

Question 4

Do both loan types require private mortgage insurance?

Accepted Answer

Conventional loans require PMI below 20% down. Jumbo loans typically don't have PMI but may have higher rates or require larger down payments instead.

Question 5

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

Accepted Answer

Jumbo lenders typically require 6-12 months of reserves covering principal, interest, taxes, and insurance. The exact amount depends on loan size and lender requirements.

Conventional vs Jumbo Loans in Saratoga: Financing Your Santa Clara County Home