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in Porterville, CA
Most Porterville buyers stick with conventional loans because they work for homes under $806,500. That's the 2025 conforming limit for Tulare County.
Jumbo loans kick in when you're buying above that threshold. They carry different rules, stricter standards, and often higher rates.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with credit scores starting at 620.
These loans offer the best rates because they're backed by government-sponsored enterprises. PMI drops off automatically at 78% loan-to-value.
Most Porterville borrowers qualify with standard W-2 income documentation. Rates vary by borrower profile and market conditions.
Jumbo loans finance properties above $806,500 without government backing. Lenders take on more risk, so they demand stronger borrower profiles.
You'll need at least 10% down, often 20% to avoid higher rates. Credit scores typically start at 700, with most competitive rates at 740-plus.
These loans require larger cash reserves—usually six to twelve months of mortgage payments in the bank after closing. Documentation standards are stricter across the board.
The loan limit creates the clearest split. Under $806,500, conventional wins on rate and flexibility. Above it, jumbo is your only non-portfolio option.
Credit and reserve requirements separate these programs. Conventional approves at 620 with minimal reserves. Jumbo wants 700-plus credit and substantial liquid assets.
Rate pricing flips based on loan size. Conventional rates bottom out with standard Fannie/Freddie pricing. Jumbo rates run 0.25-0.75% higher depending on your profile and down payment.
If your Porterville purchase stays under $806,500, use conventional. You'll get better rates, easier approval, and more lender competition.
Jumbo becomes necessary only when you're buying above conforming limits. Even then, make sure you have 20% down and strong credit to access competitive pricing.
Some buyers split the difference with an 80-10-10 structure—conventional first, piggyback second, 10% down. That works if you want to avoid jumbo pricing on an $850,000 purchase.
Jumbo loans start at $806,501 in Tulare County. Anything at or below $806,500 qualifies as conforming conventional.
No. Jumbo loans require minimum 10% down, with 20% down needed for the best rates and terms.
Usually, yes. Jumbo rates run 0.25-0.75% higher than conventional, though strong borrowers sometimes see competitive pricing.
Conventional loans typically close quicker due to automated underwriting. Jumbo loans require more manual review and documentation.
Yes, if your balance drops below $806,500 through paydown or appreciation. You'll access better conventional rates when you refinance.