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in Beverly Hills, CA
Beverly Hills home prices routinely exceed conforming loan limits. Most buyers here need jumbo financing to close.
Understanding when you cross into jumbo territory determines your rate, down payment, and approval requirements. The line sits at $806,500 for single-family homes in Los Angeles County.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They work for properties up to $806,500 in Los Angeles County.
You can put down as little as 3% with strong credit. Rates are typically lower because these loans trade on the secondary market.
Approval focuses on credit score, debt ratios, and documentation. PMI drops off at 20% equity, unlike government loans where it sticks around.
Jumbo loans finance properties above conforming limits. In Beverly Hills, that covers most of the market.
Expect stricter approval standards. Lenders want 700+ credit scores and lower debt ratios since they hold the risk themselves.
Down payments typically start at 10-20%, though some lenders offer lower with compensating factors. Rates run 0.25-0.75% higher than conforming loans, depending on your profile.
The loan limit divides these products. Below $806,500, conventional wins on rate and flexibility. Above that amount, jumbo is your only option.
Jumbo lenders scrutinize reserves more carefully. Many want 6-12 months of payments in the bank after closing, not just enough to cover down payment and costs.
Conventional loans allow higher debt ratios with automated underwriting approval. Jumbo underwriters manually review every file and apply tighter standards to back-end ratios.
Purchase price dictates your path. Properties under $806,500 get conventional financing with better rates and easier approval. Anything above that threshold requires jumbo.
If you're shopping near the limit, consider whether a smaller down payment on a conventional loan beats the higher rate on a jumbo. Running both scenarios shows the real cost difference.
Strong financial profiles make jumbo loans work smoothly. If your credit sits below 700 or reserves are tight, buying under the conforming limit saves money and stress.
$806,500 for single-family homes in Los Angeles County. Anything above requires jumbo financing.
Typically yes, by 0.25-0.75%. Borrowers with excellent credit and large down payments sometimes get competitive pricing.
Some lenders allow it with strong compensating factors. Most require 10-20% down for Beverly Hills properties.
Most lenders want 700 minimum. 740+ gets you the best rates and approval odds.
Typically 6-12 months of payments after closing. Higher loan amounts often require more reserves.