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in Tulare, CA
Most Tulare buyers stick with conventional loans because they stay under the 2025 conforming limit of $806,500. But if you're buying agricultural property, a larger estate, or land with a custom build, you'll cross into jumbo territory.
The difference isn't just loan size. Jumbo loans require stronger credit, larger down payments, and more cash reserves. Understanding where that line falls helps you budget correctly and choose the right lender.
Conventional loans work for any purchase under $806,500 in Tulare County. You can put down as little as 3% with PMI or 20% to avoid it. Credit requirements start at 620, though you'll get better rates at 740+.
These loans move fast because lenders sell them to Fannie Mae or Freddie Mac. That standardization means quicker underwriting and more lender options. For W-2 earners with clean credit, conventional is the default choice.
Jumbo loans start at $806,501 in Tulare. You'll need 10-20% down depending on loan amount and credit profile. Most lenders require 700+ credit, though some accept 680 with compensating factors.
Expect to show 6-12 months of reserves after closing. Lenders want proof you can handle payments if income drops. Jumbo rates sometimes beat conventional rates because these loans stay in portfolio or sell to private investors.
Credit matters more with jumbo. A 680 score works for conventional but barely qualifies for jumbo. Drop to 660 and conventional still approves while jumbo lenders walk. Reserves are optional for conventional but mandatory for jumbo.
Down payment flexibility separates the two. Conventional allows 3% down on purchases up to the limit. Jumbo starts at 10% and some lenders require 15-20% above $1.5 million. That's $80,000 versus $150,000 on a $1 million purchase.
If your Tulare purchase stays under $806,500, conventional wins. Lower down payment, easier approval, faster closing. Even if you have jumbo-level finances, there's no benefit to overcomplicating the loan.
Choose jumbo only when your purchase price requires it. That means larger properties, significant acreage, or custom builds. Build your reserves first—lenders won't approve without them. Expect 45-60 days to close versus 30-40 for conventional.
$806,500 for single-family homes. Anything above that amount requires a jumbo loan.
No. Jumbo loans require minimum 10% down, often 15-20% for larger amounts.
Not always. Jumbo rates sometimes beat conventional because lenders keep them in portfolio.
Reserves are cash equal to 6-12 months of mortgage payments. Lenders want proof you can handle payments during income disruption.
Yes. If you negotiate below $806,500, switch to conventional for easier approval and lower down payment.