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in Mount Shasta, CA
Mount Shasta home buyers face a clear fork: conventional loans work for most properties here, while jumbo loans handle the occasional high-value mountain estate or acreage deal. The loan you need depends entirely on your purchase price.
Conventional loans cap at $806,500 in Siskiyou County for 2025. Anything above that requires jumbo financing, which brings stricter qualification and often higher rates.
Conventional loans give you the lowest rates and most flexible terms when buying within conforming limits. You can put down as little as 3% with strong credit, though you'll pay PMI until you hit 20% equity.
These loans work through Fannie Mae and Freddie Mac guidelines. Minimum credit score sits at 620, but competitive rates start around 680. You'll need income documentation and debt-to-income below 50%.
Jumbo loans finance properties above $806,500 in Siskiyou County. These portfolios loans aren't sold to Fannie or Freddie, so lenders set their own rules and carry more risk.
Expect 10-20% down minimum and credit scores above 700 for decent rates. Most lenders want 6-12 months reserves and will scrutinize your income more carefully than conventional deals.
The loan limit creates the hard line. Conventional rates typically run 0.25-0.50% lower than jumbo rates because they carry government backing. Jumbo lenders price for portfolio risk.
Down payment requirements hit harder on jumbo deals. Where conventional accepts 3-5%, jumbo starts at 10% and many lenders want 15-20%. Cash reserves matter more too—conventional might ask for 2 months, jumbo wants 6-12.
Your purchase price makes the decision for you. Buying under $806,500? Go conventional—better rates, lower down payment, easier qualification. Only consider jumbo if you're purchasing above that threshold.
If you're right at the conforming limit, keep your purchase price below it. The savings on rate and down payment far outweigh an extra $20-30k in home value. I've seen buyers negotiate down $10k to stay conventional and save $200/month.
$806,500 for 2025 in Siskiyou County. Anything above requires jumbo financing regardless of property type.
No. The loan limit applies to loan amount, not purchase price. A $900k home needs jumbo even with $200k down.
Almost always, by 0.25-0.50%. Jumbo loans carry more risk for lenders since they can't sell them to Fannie or Freddie.
Conventional typically closes in 25-30 days. Jumbo takes 30-40 days due to extra underwriting scrutiny and reserve verification.
Yes. Conventional starts at 620 credit, but jumbo lenders want 700+ for competitive rates and smoother approval.