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in Windsor, CA
Windsor sits in a price range where some buyers fit conventional limits while others need jumbo financing. The line between these two loan types matters because it affects your rate, down payment, and approval requirements.
Your loan choice hinges on your purchase price relative to Sonoma County conforming limits. Most Windsor buyers shop both options before deciding which makes financial sense.
Conventional loans follow limits set by the FHFA and get sold to Fannie Mae or Freddie Mac. These loans offer the most competitive rates and flexible down payment options starting at 3% for qualified buyers.
You'll need a 620 minimum credit score, though 740+ unlocks the best pricing. The loan tops out at the conforming limit, which changes annually and varies by county.
Jumbo loans exceed conforming limits and stay in portfolio rather than selling to Fannie or Freddie. Lenders price these loans based on their own risk appetite, which typically means stricter requirements but still competitive rates.
Expect to put down 10-20% minimum depending on the lender. Credit scores need to hit 700 at minimum, with most competitive pricing reserved for borrowers above 740.
The conforming loan limit creates a hard line between these products. In Sonoma County, conventional loans cap out at the local conforming limit while jumbos start where conventional loans stop.
Jumbo loans demand stronger financials across the board. You'll face stricter debt-to-income requirements, larger reserve requirements, and more documentation scrutiny than conventional loans require.
Rate differences used to be dramatic but have narrowed considerably. Today, jumbo rates often run within 0.125% to 0.50% of conventional rates, sometimes even matching them for well-qualified borrowers.
Your purchase price makes this decision for you in most cases. If your Windsor home costs less than the conforming limit, conventional wins on flexibility and down payment options.
Above that threshold, jumbo becomes your only choice unless you make a massive down payment. The good news: if you can afford a jumbo purchase price, you likely meet the stricter qualification standards.
Some borrowers near the limit consider buying below it to access conventional financing. This works if the rate and down payment savings outweigh the property compromise.
Limits change annually based on home prices. Check current Sonoma County limits with your broker since they differ from standard conforming limits in lower-priced counties.
Yes. If you put enough down to keep your loan amount below conforming limits, you can use conventional financing regardless of purchase price.
Not necessarily. Well-qualified borrowers with 20%+ down and excellent credit often see jumbo rates competitive with or matching conventional rates.
Most lenders require 6-12 months of mortgage payments in reserves. Higher loan amounts often demand more reserves to offset lender risk.
Some lenders offer it, but most jumbo loans require 20% down to avoid mortgage insurance entirely. Pricing improves significantly at that threshold.