Question 1

What is the conforming loan limit in Sonoma County?

Accepted Answer

The FHFA sets conforming limits annually. Sonoma County qualifies as a high-cost area, so limits are higher than the national baseline. Check current FHFA figures before assuming.

Question 2

Are jumbo loan rates always higher than conventional?

Accepted Answer

Not always. Jumbo rates vary by lender and borrower profile. Shopping across multiple lenders is critical — the spread can be significant.

Question 3

How much do I need in reserves for a jumbo loan?

Accepted Answer

Most jumbo lenders want 12 months of housing payments in reserves after closing. Some require more for larger loan amounts.

Question 4

Can I use a jumbo loan for a second home in Sebastopol?

Accepted Answer

Yes, but expect stricter terms. Second-home jumbo loans typically require larger down payments and higher credit scores than primary residence jumbo loans.

Question 5

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional lenders require a 620 minimum. To get the best pricing, you want 740 or higher.

Question 6

Is PMI required on jumbo loans?

Accepted Answer

Jumbo loans typically don't require PMI. But lenders offset risk through tighter credit, income, and reserve requirements instead.

Conventional vs Jumbo Loans in Sebastopol, CA