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in Agoura Hills, CA
Agoura Hills straddles a tricky price point. Some properties fall within conventional loan limits, but many exceed them.
Knowing which loan type you need saves time and shapes your house hunt. The difference is bigger than just loan size.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer predictable terms and lower down payment options for qualified buyers.
You can put down as little as 3% with strong credit. PMI drops off once you hit 20% equity, which saves you money over time.
Rates stay competitive because these loans get sold to government-sponsored enterprises. Lenders price them consistently across the market.
Jumbo loans finance properties above $806,500 in Los Angeles County. Lenders keep these loans in portfolio instead of selling them to Fannie or Freddie.
Because lenders hold the risk, they scrutinize your finances harder. Expect stricter credit requirements and larger reserves.
Down payments typically start at 10% to 20% depending on loan amount. The higher the purchase price, the more lenders want you to invest upfront.
Credit standards separate these loans most. Conventional allows 620 credit scores; jumbo lenders want 700 or better in most cases.
Cash reserves matter more with jumbo loans. Lenders want proof you can handle payments if income drops—often 12 months of reserves for higher loan amounts.
Interest rates run close on both loan types right now. Jumbo rates sometimes beat conventional rates because wealthy borrowers default less often.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and debt ratios affect pricing on both products.
If you're buying under $806,500, stick with conventional. You'll face easier approval standards and more flexible terms.
Above that threshold, jumbo is your only option through traditional lending. Make sure you have strong credit and solid reserves before shopping in that price range.
Some buyers stretch budgets to stay under the conforming limit. That works if you find the right property, but don't sacrifice location to save on loan terms.
Loans above $806,500 are considered jumbo in Los Angeles County. That's the 2025 conforming loan limit for this area.
Not always. Jumbo rates often match or beat conventional rates because borrowers default less frequently at higher price points.
Yes, but expect stricter credit and income requirements. Most lenders prefer 15-20% down on larger loan amounts.
Typically 6-12 months of mortgage payments in liquid assets. Higher loan amounts require more reserves.
Usually yes. Conventional loans offer more flexible underwriting and lower reserve requirements below $806,500.