Question 1

What's the exact cutoff between conventional and jumbo in Cerritos?

Accepted Answer

$806,500 for a single-family home. Anything above that requires jumbo financing in Los Angeles County.

Question 2

Can I avoid PMI with less than 20% down on a conventional loan?

Accepted Answer

No. Conventional loans require PMI when you put down under 20%. Jumbo loans never require PMI regardless of down payment.

Question 3

Do jumbo loans always have higher rates?

Accepted Answer

Not always. Market conditions shift. Sometimes jumbo rates beat conventional rates when portfolio lenders compete aggressively.

Question 4

How much reserves do I need for a jumbo loan?

Accepted Answer

Usually 6-12 months of mortgage payments in liquid assets after closing. Requirements vary by loan size and credit profile.

Question 5

Can I use a conventional loan for a $900,000 home if I put $200,000 down?

Accepted Answer

No. The loan amount would be $700,000, which falls under the limit. You'd use a conventional loan in that scenario.

Conventional vs Jumbo Loans in Cerritos: Which Fits Your Budget?