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in Etna, CA
Most Etna buyers use conventional loans because property prices rarely hit jumbo territory. Jumbo loans kick in when you exceed conforming limits — currently $806,500 for Siskiyou County single-family homes.
The choice hinges on purchase price and how much you're putting down. Conventional loans offer easier qualification and lower rates for amounts under the limit.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with credit scores starting at 620, though 5-10% down gets better rates.
These loans cap at $806,500 in Siskiyou County. PMI drops off automatically at 78% loan-to-value, and you can cancel it at 80% with an appraisal.
Rates stay competitive because lenders can sell these loans to Fannie or Freddie. Most Etna properties fall well within conventional limits, making this the default choice.
Jumbo loans handle purchases above conforming limits. In Etna, you'd need one for properties over $806,500 — typically larger ranch properties or premium mountain homes.
Expect stricter requirements: 10-20% down, credit scores above 700, and debt-to-income ratios under 43%. Lenders hold more risk since they can't sell these loans to Fannie or Freddie.
You'll need 6-12 months of reserves in the bank after closing. Documentation runs deeper — expect full income verification and detailed asset sourcing.
Down payment separates these loans fast. Conventional accepts 3% down; jumbo demands 10-20%. That's $24,000 versus $80,000-$160,000 on an $800,000 property.
Credit standards differ sharply. Conventional approves 620 scores with compensating factors. Jumbo lenders want 700+ with clean credit history and strong reserves.
Rates typically favor conventional loans by 0.25-0.75% because of their government-sponsored backing. Jumbo rates reflect higher lender risk and less liquidity in the secondary market.
Most Etna buyers don't face this choice — your purchase price decides for you. Under $806,500 means conventional. Above that threshold triggers jumbo requirements automatically.
If you're near the limit, consider whether staying under $806,500 makes sense. The rate savings and easier qualification on conventional loans often outweigh getting a slightly bigger property.
Jumbo buyers need serious financial firepower: excellent credit, substantial down payment, and deep reserves. If you're stretching to hit these marks, reconsider the purchase price.
The conforming limit is $806,500 for single-family homes. Anything above that amount requires a jumbo loan with stricter qualification standards.
Some lenders approve 10% down on jumbo loans, but expect higher rates and stricter requirements. Most prefer 15-20% down for best pricing.
Typically yes, by 0.25-0.75%. Rates vary by borrower profile and market conditions, but jumbo loans usually cost more due to higher lender risk.
Conventional loans start at 620. Jumbo loans typically require 700+ with clean credit history and strong financial reserves.
Only by keeping your purchase under $806,500. No way around jumbo requirements once you cross that threshold in Siskiyou County.
Plan for 6-12 months of housing payments in liquid assets after closing. Higher loan amounts often require reserves at the upper end.