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in Dorris, CA
Most Dorris buyers use conventional loans because property values stay below conforming limits. Jumbo loans only come into play when you're financing above those thresholds.
The conforming limit in Siskiyou County determines which loan type you need. Cross that line and you're shopping jumbo rates and requirements, which play by different rules.
Conventional loans work for properties under the conforming limit—$766,550 in most of California for 2024. You can put down as little as 3% with PMI or 20% to avoid it.
These loans offer the most competitive rates because Fannie Mae and Freddie Mac buy them. Approval typically requires 620+ credit and debt-to-income under 50%.
You'll find the widest range of lenders competing for conventional business. That competition keeps rates sharp and closing costs reasonable for qualified borrowers.
Jumbo loans finance anything above conforming limits—rare in Dorris but necessary for high-value rural properties. These don't get sold to Fannie or Freddie, so lenders hold the risk.
Expect higher credit requirements, typically 700+ minimum. Most jumbo lenders want 10-20% down and reserves covering 6-12 months of payments.
Jumbo rates used to sit well above conventional. That gap has narrowed significantly—sometimes jumbo rates actually beat conventional when you have strong credit and assets.
The loan limit is the obvious divider. Conventional maxes out at $766,550 while jumbo starts there and goes as high as lenders will approve based on your profile.
Credit standards tighten with jumbo loans. A 620 score works for conventional, but jumbo lenders rarely approve below 700 and prefer 740+ for their best pricing.
Down payment flexibility differs significantly. Conventional allows 3% down with strong credit while jumbo typically starts at 10% and many lenders prefer 20% for properties in smaller markets.
Reserve requirements separate the two programs. Conventional might want 2 months reserves while jumbo often requires 6-12 months of payments sitting in the bank after closing.
Your property price makes this decision for you most of the time. Under $766,550 means conventional is available and usually your best option—better flexibility, lower barriers to entry.
Above that threshold you're shopping jumbo whether you like it or not. The good news: if you're buying that high in Dorris, you likely have the credit and assets jumbo lenders want to see.
Some buyers with large down payments actually get better jumbo rates than conventional. If you're putting down 25%+ with 760+ credit, run both scenarios before assuming conventional wins.
The 2024 conforming limit is $766,550 for single-family homes. Anything above that requires a jumbo loan regardless of property location.
Yes, some lenders approve jumbo loans with 10-15% down. You'll need exceptional credit and significant reserves to qualify at lower down payments.
Not anymore. Borrowers with 740+ credit and 25%+ down often see jumbo rates match or beat conventional rates depending on market conditions.
Conventional loans start at 620 credit. Jumbo loans typically require 700 minimum, with best rates reserved for 740+ scores.
Most jumbo lenders want 6-12 months of mortgage payments in liquid reserves after closing. Conventional loans typically require only 2 months.
Yes, your lender can shift loan programs if your price crosses the conforming limit. Expect different qualification requirements and documentation needs.