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in Simi Valley, CA
Simi Valley prices push many buyers past the conforming loan limit. That's the line separating conventional from jumbo financing.
Knowing which side of that line you're on changes your rate, your down payment, and your approval requirements.
Conventional loans stay at or below the FHFA conforming limit. In Ventura County, that limit applies to single-family homes.
These loans follow Fannie Mae and Freddie Mac guidelines. That means more lenders, more competition, and typically lower rates.
Jumbo loans cover purchase prices above the conforming limit. They're not sold to Fannie or Freddie, so lenders hold more risk.
That risk means lenders get stricter. Expect higher credit requirements, larger reserves, and more documentation.
Rates vary by borrower profile and market conditions. HousingWire flagged the 30-year fixed hitting 6.57% — jumbo rates often run close to conventional, but the spread widens when markets tighten.
Conventional loans close faster. Jumbo files go through manual review. Budget extra time for appraisals and income verification.
Jumbo has no mortgage insurance. On a large loan, that monthly savings can offset a slightly higher rate.
Stay conventional if your purchase price fits under the limit. Lower reserve requirements and easier approvals are worth it.
Go jumbo when the property demands it. Trying to split a purchase into two loans to avoid jumbo is rarely worth the hassle.
Strong W-2 income, 700+ credit, and 12 months of reserves? You'll likely qualify for both. Pick based on property price.
The FHFA sets conforming limits annually. Ventura County qualifies as a high-cost area, so the limit is above the national baseline.
Not always. Rates vary by borrower profile and market conditions. The gap between jumbo and conventional is often under 0.25%.
Some lenders allow 10% down on jumbo. Expect tighter credit requirements and higher reserves when going below 20%.
Conventional loans typically close faster. Jumbo files require manual underwriting and more thorough appraisal review.
Most jumbo products don't require PMI. That's a real monthly savings on a high loan amount.
Most jumbo lenders want 700 or above. Some go to 680, but expect fewer options and tighter terms below 700.