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in Cerritos, CA
Cerritos sits in a sweet spot where some buyers need conventional loans and others need jumbo financing. The difference comes down to loan size limits and how much home you're buying.
Both loans work for strong borrowers, but they have different credit requirements and rate structures. Knowing the split point helps you plan your down payment and closing strategy.
Conventional loans follow conforming limits set by the Federal Housing Finance Agency. In Los Angeles County, that's $832,750 for a single-family home in 2026.
You can put down as little as 3% with strong credit, though you'll pay PMI under 20% down. These loans move fast because lenders know the underwriting rules cold.
Jumbo loans kick in above $832,750 in this market. You're borrowing outside the conforming box, so lenders price for extra risk.
Most jumbos require 10-20% down minimum. Credit standards run higher — usually 700+ to get decent pricing. No PMI regardless of down payment, which saves money long-term.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Cerritos.
Cerritos sits in a sweet spot where some buyers need conventional loans and others need jumbo financing. The difference comes down to loan size limits and how much home you're buying.
Both loans work for strong borrowers, but they have different credit requirements and rate structures. Knowing the split point helps you plan your down payment and closing strategy.
Conventional loans follow conforming limits set by the Federal Housing Finance Agency. In Los Angeles County, that's $832,750 for a single-family home in 2026.
The rate spread matters. Jumbo rates sometimes beat conventional rates when the market favors portfolio lending. Other times they run 0.25-0.50% higher.
Underwriting gets stricter on jumbos. Lenders verify reserves — usually 6-12 months of payments in the bank after closing. Debt-to-income limits tighten to 43% or lower in most cases.
If you're buying under $832,750 in Cerritos, conventional wins on flexibility and speed. You get lower down payment options and more forgiving credit thresholds.
Above that limit, jumbo is your only path unless you make a huge down payment. The good news: if you qualify, jumbo terms often beat what borrowers expect. No PMI offsets the rate difference over time.
$832,750 for a single-family home. Anything above that requires jumbo financing in Los Angeles County.
No. Conventional loans require PMI when you put down under 20%. Jumbo loans never require PMI regardless of down payment.
Not always. Market conditions shift. Sometimes jumbo rates beat conventional rates when portfolio lenders compete aggressively.
Usually 6-12 months of mortgage payments in liquid assets after closing. Requirements vary by loan size and credit profile.
No. The loan amount would be $700,000, which falls under the limit. You'd use a conventional loan in that scenario.