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in Exeter, CA
Most Exeter buyers start with conventional loans, but some properties push past conforming limits. That's when jumbo financing enters the conversation.
The choice hinges on your purchase price and financial profile. Conventional loans cap at $806,500 in Tulare County, while jumbo loans cover everything above that threshold.
Conventional loans work for most Exeter properties. You can put down as little as 3% with strong credit, though 20% eliminates mortgage insurance entirely.
Rates stay competitive because Fannie Mae and Freddie Mac back these loans. Lenders follow standardized guidelines, which means faster approvals and clearer expectations.
You need a 620 credit score minimum, but 740+ gets you the best pricing. Debt-to-income ratios max out around 50% with compensating factors like cash reserves.
Jumbo loans finance Exeter properties above $806,500. They're portfolio products, meaning each lender sets its own rules rather than following Fannie Mae standards.
Expect stricter requirements. Most lenders want 680+ credit scores and 10-20% down minimum, with better rates at higher down payments.
Cash reserves matter more here. Lenders typically require 6-12 months of mortgage payments sitting in the bank after closing, proving you can weather financial disruptions.
The rate gap narrowed in recent years. Jumbo rates sometimes beat conventional rates because these borrowers pose less default risk to lenders despite the larger loan amounts.
Underwriting gets more thorough with jumbos. Lenders scrutinize income sources, asset documentation, and employment stability more carefully than conventional guidelines require.
Down payment flexibility separates them. Conventional allows 3% down with PMI, while jumbo loans rarely go below 10% and never carry mortgage insurance at any loan-to-value ratio.
Your purchase price decides this for you. Below $806,500, conventional makes sense unless you want to avoid mortgage insurance with a jumbo product at lower down payments.
Above that threshold, jumbo is your only option. Focus on building reserves and documentation rather than shopping rates, since approval depends more on your financial depth than rate shopping.
Some buyers blend both. Put 10% down on an $850,000 home with a conventional loan at $806,500 and a second jumbo loan for the remainder, avoiding single-loan jumbo requirements.
$806,500 for single-family homes in Tulare County. Anything above requires jumbo financing.
No. Jumbo rates often match or beat conventional rates because borrowers typically have stronger credit and larger down payments.
Only with jumbo loans. Conventional loans require PMI below 20% down, but some jumbo products waive it at 10-15% down.
Typically 6-12 months of mortgage payments in liquid assets after closing. Conventional loans rarely require more than 2 months.
Conventional allows 620 minimum. Jumbo lenders typically want 680-700+ for approval and competitive rates.