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in Fort Jones, CA
Fort Jones sits in Siskiyou County where most properties fall comfortably under conforming loan limits. But if you're eyeing ranch land or a higher-end property, you'll cross into jumbo territory fast.
The difference between these loans isn't just loan size. Credit requirements, down payments, and rates all shift once you exceed conforming limits.
Conventional loans work for purchases up to $806,500 in this area. You can put down as little as 3% with strong credit, though 20% avoids PMI.
These loans come with standardized underwriting. Lenders follow Fannie Mae and Freddie Mac guidelines, which means predictable approval criteria across the board.
Rates stay competitive because these loans get sold to the secondary market. You'll typically see better pricing than jumbo loans at the same credit level.
Jumbo loans kick in above $806,500. In Fort Jones, that usually means larger ranch properties or high-end custom homes with acreage.
Expect stricter standards across the board. Most lenders want 10-20% down, credit scores above 700, and cash reserves covering 6-12 months of payments.
Rates run higher than conventional because lenders hold more risk. These loans don't get sold to Fannie or Freddie, so each lender sets their own guidelines.
Down payment flexibility separates these loans fast. Conventional allows 3% down with PMI, while jumbo lenders rarely go below 10% and often push for 20%.
Credit standards tighten on jumbos. A 620 score can work for conventional, but jumbo lenders want 700 minimum and prefer 740+ for best pricing.
Cash reserves matter more with jumbos. Conventional loans might ask for 2 months reserves, while jumbo underwriters want to see 6-12 months of mortgage payments sitting in the bank.
Debt ratios get scrutinized harder on jumbo loans. Where conventional might approve 50% DTI with compensating factors, jumbo lenders cap most deals at 43% and prefer lower.
If your purchase stays under $806,500, conventional wins every time. Lower down payment, easier approval, better rates. No reason to overcomplicate it.
Jumbo becomes your only option above that threshold. Properties with significant land or custom builds in Fort Jones can easily cross into jumbo range despite the rural setting.
Strong financial profile matters more with jumbos. If you're borderline on credit or reserves, consider a smaller purchase that fits conventional limits.
$806,500 for 2024. Anything above that requires a jumbo loan regardless of property type.
Some lenders allow it with strong credit and reserves. Most prefer 15-20% down for best approval odds and pricing.
Usually, yes. Rates vary by borrower profile and market conditions, but jumbos typically price 0.25-0.75% higher.
Conventional loans start at 620. Jumbo lenders want 700 minimum, with 740+ for best rates.
Expect 6-12 months of mortgage payments in liquid assets. Higher loan amounts push toward the 12-month end.