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in Vallejo, CA
Vallejo sits in an interesting price zone where many buyers could qualify for either loan type. The line between conventional and jumbo matters because it changes your rate, down payment, and reserve requirements.
In Solano County, conforming loan limits max out at $806,500 for single-family homes in 2025. Above that threshold, you're in jumbo territory with different approval standards.
Conventional loans up to $806,500 follow standardized underwriting. You can put down as little as 3% with PMI, and most lenders approve these faster because Fannie Mae and Freddie Mac set clear guidelines.
Rates run lower because these loans get sold to the secondary market. Lenders compete hard on conventional pricing, especially for borrowers with 740+ credit and 20% down.
You need steady income documentation and a 620 minimum credit score. Debt-to-income ratios can stretch to 50% in some cases, giving W-2 earners flexibility.
Jumbo loans fund anything above $806,500 without a government backstop. Lenders hold these loans on their books, so they set their own rules and price for the added risk.
You're looking at 10-20% down minimum, though some portfolio lenders go lower for strong profiles. Expect to show 6-12 months of reserves and document every income source thoroughly.
Credit standards tighten at the jumbo level. Most lenders want 700+ scores, and your DTI typically caps at 43%. The upside: competitive rates for well-qualified borrowers buying waterfront or hillside properties.
The down payment gap matters most to Vallejo buyers. Conventional lets you start at 3%, while jumbo lenders want 10-20% upfront. On an $850,000 home, that's $25,500 versus $85,000 minimum.
Rates favor conventional loans by 0.25-0.50% in most market conditions. Jumbo pricing varies more between lenders because each bank prices its own risk. Shopping jumbo rates across our 200+ lenders typically saves borrowers $15,000-$30,000 over the loan term.
Approval speed differs too. Conventional loans close in 21-30 days with automated underwriting. Jumbo files need manual review, adding 7-10 days and requiring more documentation rounds.
Your purchase price decides this for you in most cases. Buying under $806,500 means conventional wins on rate, down payment, and approval speed. Above that limit, jumbo is your only non-government option.
Some buyers with large down payments choose jumbo loans even under the limit to avoid PMI and get portfolio lending flexibility. This works if you're self-employed or have complex income that doesn't fit conventional boxes.
For homes near the $806,500 line, run numbers both ways. A conventional loan with PMI at 10% down sometimes beats a jumbo loan at the same down payment, depending on your credit profile and current rate spreads.
$806,500 for single-family homes in Solano County. Anything above that requires a jumbo loan.
Yes, by putting down 20% or more. Below that, you'll pay PMI until you reach 20% equity.
Usually, but the gap narrows for borrowers with 760+ credit and 25% down. Shop multiple lenders to find competitive jumbo pricing.
Most lenders require 6-12 months of mortgage payments in liquid reserves. Higher loan amounts may need 18-24 months.
Some lenders allow it for borrowers with 740+ credit and strong income. Expect higher rates and stricter reserve requirements.