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in Bradbury, CA
Bradbury sits at the expensive end of Los Angeles County real estate. Many homes here push past the conforming loan limit, which is where conventional loans stop and jumbo loans start.
The line between these two loan types matters more than you'd think. It affects your rate, down payment, and approval odds—especially in a city where price tags run high.
Conventional loans work up to the FHFA conforming limit. In Los Angeles County, that's $806,500 for a single-family home—well below most Bradbury listings.
These loans typically require 3-20% down depending on your profile. You'll need solid credit, steady income, and clean financials. Lenders price these aggressively because Fannie Mae and Freddie Mac back the risk.
If you're buying a condo or less expensive property in the area, conventional loans offer the lowest rates available. The approval process is standardized, which means faster closings when your file is clean.
Jumbo loans start where conventional loans stop. Anything over $806,500 requires a jumbo product, which most Bradbury buyers need given the local price range.
These loans aren't backed by Fannie or Freddie, so lenders hold the risk. That means stricter approval standards—expect 10-20% down minimum, higher credit score requirements, and more documentation.
Jumbo rates have tightened significantly over the past few years. In many cases, they now match or beat conventional rates for strong borrowers. But the underwriting process digs deeper into reserves, assets, and income stability.
The down payment gap is real. Conventional loans can close with as little as 3% down if you meet lender criteria. Jumbo loans almost always require 10% minimum, often 20% for the best pricing.
Credit standards diverge too. Most conventional loans approve at 620-640 credit scores. Jumbo lenders want 700 minimum, preferably 720+ for competitive rates.
Debt-to-income ratios get scrutinized harder on jumbo loans. Where conventional loans allow up to 50% DTI in some cases, jumbo lenders prefer 43% or lower. They also require larger cash reserves—often 6-12 months of payments in the bank after closing.
Your purchase price makes the first cut. If you're buying under $806,500, conventional wins on flexibility and pricing. Above that threshold, you're in jumbo territory by default.
Financial strength determines your experience. Strong credit, significant assets, and low debt ratios make jumbo loans straightforward. Thinner profiles should expect more documentation requests and potentially higher rates.
Down payment availability matters too. If you're stretching to buy in Bradbury with minimal down payment, you'll need a loan amount under the conforming limit. Jumbo lenders won't approve 3-5% down purchases on million-dollar homes.
Anything over $806,500 requires a jumbo loan in Los Angeles County. Most Bradbury homes exceed this threshold given local pricing.
Not necessarily. Jumbo rates for well-qualified borrowers often match or beat conventional rates. Your profile determines actual pricing.
Yes, but expect higher rates than 20% down scenarios. Some lenders require 15-20% minimum depending on loan amount and credit profile.
Sometimes. Jumbo underwriting involves more documentation review and larger loan amounts require additional verification steps throughout the process.
Most lenders want 700 minimum. You'll get best pricing at 720+ with strong income documentation and significant cash reserves.