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in Davis, CA
Davis is a college town with real estate prices that push past conforming loan limits. That line is where conventional loans end and jumbo loans begin.
Choosing the wrong loan type costs you money. Knowing the difference upfront changes how you shop, qualify, and close.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. They're not government-backed, but they're the most common loan in Davis.
Most lenders require a 620 credit score minimum. Put 20% down and you skip private mortgage insurance entirely.
Loan amounts must stay at or below the FHFA conforming limit for Yolo County. Go a dollar over and you're in jumbo territory.
Jumbo loans cover amounts above the conforming limit. They're privately held by lenders, so every lender sets their own rules.
Expect stricter requirements across the board. Most lenders want a 700+ credit score, 12 months of reserves, and full income documentation.
Rates vary more than conventional. A strong file can still land a competitive rate — but qualification standards leave less room for error.
The biggest split is qualification. Conventional loans follow uniform Fannie/Freddie standards. Jumbo lenders write their own playbook.
HousingWire flagged the 30-year fixed hitting 6.57% recently — that matters more on a jumbo balance. A rate difference of 0.25% on a $1.2M loan is real money. Rates vary by borrower profile and market conditions.
Down payment minimums differ too. Conventional allows as low as 3% down. Most jumbo lenders want at least 10-20% on a high-value Davis property.
If your purchase price stays within the Yolo County conforming limit, conventional wins. Easier to qualify, more lender options, and faster closings.
If you're buying above the limit — which happens fast in Davis — jumbo is your only path. Make sure your credit is clean and your reserves are documented.
We work with 200+ wholesale lenders. That means we can find you a jumbo program that fits, even if your profile doesn't match the big bank checklist.
The FHFA sets this limit and it changes annually. Any loan amount above that threshold in Yolo County requires jumbo financing.
Some lenders allow 10% down on jumbo loans. Expect stricter credit and reserve requirements at lower down payment amounts.
Not always — but the gap matters more on large balances. Rates vary by borrower profile and market conditions.
Most conventional lenders require a 620 minimum. A score above 740 gets you the best pricing.
Most jumbo lenders want 12 months of mortgage payments in reserve. Some programs require more on larger loan amounts.
Yes. Put 20% down and PMI goes away. Some lenders also offer lender-paid PMI options at a slightly higher rate.