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in Bellflower, CA
Most Bellflower buyers use conventional loans because they stay under the conforming limit. Jumbo loans kick in when you exceed those caps, which happens less often here than in coastal LA markets.
The loan you need depends on purchase price and down payment size. Understanding the threshold between these two determines your rate, requirements, and lender options.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with PMI, or 20% to avoid it entirely.
Credit score minimums start at 620, though you'll get better rates above 740. These loans offer the most lender competition, which keeps rates sharp.
Jumbo loans finance amounts above conforming limits, which is $806,500 in Los Angeles County for 2024. Lenders set their own rules since Fannie and Freddie don't back these loans.
Expect stricter requirements: 700+ credit scores, 10-20% down minimums, and larger cash reserves. Rates run close to conventional, sometimes even lower depending on your profile.
Credit standards tighten with jumbos. A 680 score might work for conventional, but jumbo lenders want 700 minimum and prefer 740+ for best pricing.
Down payment flexibility shrinks too. Conventional allows 3% down programs; jumbo starts at 10% and many lenders require 15-20% for competitive rates. Cash reserves matter more on jumbos—expect to show 6-12 months of payments in the bank after closing.
If your purchase price stays under $806,500, conventional wins. You'll have more lender options, easier qualification, and lower down payment requirements.
Above that threshold, jumbo is your only conforming option. Focus on credit score first—every 20 points above 700 improves your rate. Plan for larger reserves and be ready to document income thoroughly since underwriting gets more detailed.
$806,500 for a single-family home in Los Angeles County. Anything above requires a jumbo loan.
Yes, some lenders approve 10-15% down on jumbos. You'll pay a higher rate and need stronger credit to qualify.
Not always. Borrowers with 740+ credit and 20% down often see jumbo rates match or beat conventional pricing.
Typically 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts may require more.
Yes, but most lenders require you to contribute some of your own funds. Expect at least 5% from your own accounts.