The Sacramento region has many beautiful homes that cost more to purchase than is possible to borrow using a conforming conventional loan.
Thankfully, you can borrow a higher amount using a jumbo mortgage, allowing you to move into your dream home.
What is a Jumbo Loan?
A jumbo loan is a type of conventional loan that does not conform to the Fannie Mae and Freddie Mac loan limits.
Do You Need a Jumbo Loan in California?
The key to figuring out whether you need to apply for a jumbo loan or a conforming loan is to look up what the Fannie Mae and Freddie Mac loan limits are for your county.
The conforming loan limits for most counties nationwide are:
To help more homeowners use conforming loans to purchase homes in high cost areas, the Fannie Mae and Freddie Mac loan limits are higher for certain counties.
Rancho Cordova is in Sacramento County, CA. Here are the conforming loan limits for Sacramento County:
There are other counties in CA that also have higher conforming loan limits to reflect the higher cost of housing in those counties.
Do You Qualify for a CA Jumbo Mortgage?
Here is what we will look at when determining whether you qualify to purchase a home with a jumbo mortgage:
- Your credit score
- Your debt-to-income (DTI) ratio
- Your employment history and status
- Your income
- Your down payment ability
- Your cash reserves
The requirements are more competitive for jumbo loans than they are for conforming loans since you are borrowing a higher amount of money. You also may need to get two appraisals.
Apply for a Jumbo Loan in Rancho Cordova or Beyond
Unsure whether you need a jumbo loan, or want to apply now? Please contact us today at (916) 669-1682 to schedule your consultation. We work with borrowers in Rancho Cordova, Gold River and throughout Sacramento, El Dorado, Placer, San Joaquin and Stanislaus Counties. We can also serve you anywhere in California.