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in Vacaville, CA
Vacaville sits in a pricing sweet spot where some homes need conventional financing and others require jumbo loans. The difference comes down to loan limits, not property quality.
Most Solano County buyers use conventional loans because they stay under federal limits. But if you're buying above those thresholds, you'll need a jumbo loan with stricter requirements.
Conventional loans work for most Vacaville buyers because they handle properties below conforming limits. You can put down as little as 3% with private mortgage insurance until you hit 20% equity.
These loans offer the most flexibility on rate shopping since nearly every lender offers them. Credit requirements start at 620, though better rates kick in above 740.
You'll find the best pricing on conventional loans between $200K and the conforming limit. That covers the majority of single-family homes and townhomes across Vacaville.
Jumbo loans finance properties above conforming limits, which means larger loan amounts with no federal backing. Lenders take more risk, so they want stronger borrowers.
Expect to put down at least 10%, though 20% gets you better pricing. Credit scores below 700 make approval difficult, and you'll need significant cash reserves after closing.
These loans work well for high-income W-2 earners buying luxury homes or properties in premium neighborhoods. Self-employed borrowers face tougher documentation requirements than with conventional financing.
The bright line is purchase price. Conventional loans max out at conforming limits while jumbo loans start where conventional stops.
Jumbo loans demand higher credit scores, bigger down payments, and more reserves. Conventional loans offer more flexibility on all three factors, especially for first-time buyers.
Rate differences shift with market conditions. Sometimes jumbos price better than conventional loans, but underwriting stays consistently stricter on jumbo products.
Your purchase price decides this for you. If you're buying below conforming limits, use a conventional loan for better flexibility and lower barriers to entry.
Once you cross into jumbo territory, strengthen your financial profile before applying. Lenders want to see excellent credit, substantial reserves, and clean income documentation.
Some Vacaville buyers on the borderline can adjust their purchase price to stay conventional. Avoiding jumbo requirements might save more money than buying a slightly larger home.
Conforming limits change annually and vary by county. Contact us for current Solano County limits to determine if you need conventional or jumbo financing.
Yes, with 20% down payment or through lender-paid mortgage insurance options. Jumbo loans typically require 20% down to get optimal pricing.
Not always. Strong borrowers sometimes get better jumbo rates than conventional rates, though qualification requirements stay stricter regardless of pricing.
Conventional loans start at 620 credit. Jumbo loans realistically need 700+ for competitive approval, with best rates above 740.
Most jumbo lenders want 6-12 months of mortgage payments in reserves after closing. Conventional loans may require little to no reserves depending on down payment.
Yes, but expect two years of tax returns and detailed income documentation. Jumbo underwriting scrutinizes self-employment income more closely than conventional loans.