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in Sonora, CA
Most Sonora buyers use conventional loans for properties under conforming limits. Jumbo loans kick in when you're financing above those thresholds—common in Tuolumne County's higher-end mountain properties.
The split matters because jumbo loans face stricter requirements and different rate structures. Your choice depends on purchase price and how much scrutiny you can handle during underwriting.
Conventional loans work for most Sonora home purchases under conforming limits. You get standardized guidelines, competitive rates, and predictable approval criteria across hundreds of lenders.
Down payments start at 3% for first-time buyers, 5% for repeat buyers. You'll need at least 620 credit, though 740+ unlocks better pricing. PMI applies under 20% down but drops off once you hit that equity mark.
Jumbo loans finance properties above conforming limits set by the FHFA. These loans don't get sold to Fannie Mae or Freddie Mac, so lenders keep them in portfolio and set their own rules.
Expect 10-20% down minimum depending on loan amount. Credit requirements start around 700, though most lenders prefer 720+. You'll face tighter debt ratios and need substantial reserves—often 6-12 months of payments in the bank.
The conforming loan limit draws the line between these two. Stay under that threshold and you access conventional financing with lower credit bars and smaller down payments. Cross it and jumbo underwriting kicks in with stricter standards.
Rates vary by borrower profile and market conditions. Jumbo rates sometimes beat conventional when you have strong credit and big down payments—lenders reward low-risk profiles. Weaker credit always pays more on jumbo loans since there's no secondary market to absorb risk.
If your Sonora purchase stays under conforming limits, conventional makes sense. You get lower down payments, easier credit requirements, and more lender options competing for your business.
Jumbo becomes necessary above those limits—you don't choose it, your purchase price does. If you're there, focus on boosting credit above 740 and parking extra reserves in the bank. Strong profiles get competitive jumbo rates that sometimes match conventional pricing.
Limits vary by county and change annually. Tuolumne County follows standard limits—check current FHFA numbers since they adjust each year based on home prices.
No. If the loan amount exceeds conforming limits, it's jumbo regardless of down payment size. Putting 50% down on a $2 million home still means a jumbo loan.
Not always. Borrowers with 760+ credit and 25%+ down often see jumbo rates match or beat conventional. Rates vary by borrower profile and market conditions.
Most require 6-12 months of mortgage payments in liquid accounts after closing. Higher loan amounts push toward the 12-month end of that range.
Some lenders go to 10% down on jumbo loans. Expect higher rates and stricter credit requirements—most want 740+ scores for low-down jumbo approvals.