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in Rohnert Park, CA
Most Rohnert Park buyers face a simple split: properties under the conforming limit get conventional loans, properties above need jumbo financing. The line between them determines your rate, down payment, and how picky lenders get about your finances.
Sonoma County prices push many buyers into jumbo territory faster than they expect. Knowing which loan you'll need before you start shopping saves time and prevents surprises at approval.
Conventional loans follow federal limits set annually by the FHFA. They offer the easiest approval path for properties below that threshold, with down payments as low as 3% for first-time buyers and 5% for repeat buyers.
You'll get the best rates with 20% down to avoid PMI. Credit scores start at 620, but expect better pricing above 740. Two years of stable income history keeps underwriting straightforward.
Jumbo loans cover purchases above conforming limits. Lenders price them individually since Fannie and Freddie won't buy the loans. That means stricter underwriting and higher reserves required at closing.
Expect 10-20% down depending on credit strength. Most lenders want 700+ scores, 12 months reserves, and debt ratios under 43%. Documentation gets scrutinized harder than conventional deals.
The conforming limit is the hard line. Below it, you get conventional pricing backed by government agencies. Above it, you're in portfolio lending territory where each bank sets its own rules.
Jumbo loans cost more to close due to reserve requirements. Rates can run 0.25-0.75% higher depending on your profile. Approval takes longer because underwriters manually review everything conventional loans automate.
Your purchase price makes this decision for you. If the property costs less than the conforming limit, conventional wins on rate and ease. Above that number, jumbo is your only option.
Some buyers split the difference by increasing down payments to stay under conforming limits. Putting 25% down instead of 10% can save thousands annually in interest if it keeps you in conventional territory. Run the math both ways before deciding how much house to buy.
Limits adjust annually by county. Sonoma County typically qualifies for high-cost area adjustments above the baseline national limit. Check current year limits before shopping.
Yes, but expect 10% minimum with excellent credit above 740. Lower down payments mean higher rates and stricter debt ratio requirements from most lenders.
Usually, but strong borrowers sometimes see competitive pricing. Rates vary by borrower profile and market conditions. Shop multiple lenders for jumbo quotes.
Most lenders require 12 months of mortgage payments in liquid reserves. Some accept less with larger down payments or exceptional credit profiles.
No, the loan amount determines the type, not home value. If your balance drops below conforming limits through paydown, you could refinance to conventional terms.