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in Cotati, CA
Most Cotati buyers start with conventional loans, but Sonoma County's price points can push you into jumbo territory fast. The difference isn't just loan size—it's how lenders underwrite the deal.
Conventional loans max out at $806,500 in 2025 for Sonoma County. Anything above that? You're shopping jumbo rates and facing stricter approval standards.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3%, though most lenders prefer 5-10% to avoid PMI hassles.
Credit requirements are reasonable—most lenders approve at 620, though rates improve significantly at 740+. These loans price consistently because they're backed by the GSEs.
Two-unit properties in Cotati work fine with conventional financing. The standard documentation—W-2s, tax returns, pay stubs—gets most deals through underwriting in 3-4 weeks.
Jumbo loans handle anything above $806,500 in Sonoma County. Lenders hold these on their own books, so each institution sets its own rules.
Expect to put down 10-20% minimum. Credit scores below 700 make approval difficult—most competitive rates start at 740. Cash reserves matter more here than with conventional.
Lenders want to see 6-12 months of reserves after closing. That's mortgage payments, property taxes, and insurance sitting in your account. The extra scrutiny adds 5-10 days to typical closing timelines.
The loan limit draws the clearest line. Under $806,500, conventional wins on flexibility and pricing. Above it, you're shopping jumbo whether you like it or not.
Down payments shift dramatically. Conventional allows 3-5% down for qualified buyers. Jumbo lenders want 10-20%, and they check your reserves more carefully.
Rate pricing behaves differently. Conventional rates follow the GSEs—predictable, competitive, transparent. Jumbo rates vary by lender appetite and your specific borrower profile.
Underwriting intensity increases with jumbo loans. Lenders scrutinize income sources, employment stability, and asset seasoning more thoroughly because they're keeping the loan risk in-house.
If your Cotati purchase stays under $806,500, conventional makes the most sense. Lower down payment, easier approval, better rate consistency. No reason to complicate it.
Above that threshold, jumbo is your only option—but shop it aggressively. We see rate spreads of 0.50% or more between lenders on the same borrower profile.
Your reserve situation matters for jumbo deals. If you're stretching to make the down payment, lenders will push back. They want to see liquidity beyond the minimum required.
Credit scores below 720 face material rate hits on jumbo loans. If you're borderline, consider waiting 6-12 months to improve your score before shopping Sonoma County's higher-priced homes.
Sonoma County's conforming limit is $806,500. Loans above that amount require jumbo financing with different underwriting standards.
Yes, some lenders approve jumbo loans with 10-15% down. Expect higher rates and stricter reserve requirements below 20%.
Not always. Strong borrower profiles sometimes get competitive jumbo rates. Shop multiple lenders—pricing varies significantly.
Most lenders require 6-12 months of mortgage payments, taxes, and insurance in liquid reserves after your down payment and closing costs.
Yes, conventional loans work for 2-4 unit properties. Loan limits increase with unit count, and down payment requirements may adjust.