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in Claremont, CA
Claremont sits where affordable meets luxury in LA County. Half the market moves with conventional loans, the other half needs jumbo financing.
The line between these loans matters more here than in most cities. Cross the conforming limit and your rate, down payment, and approval odds all shift.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. In LA County, that means financing up to $1,149,825 for single-family homes in 2024.
You can put down as little as 3% with decent credit. PMI drops off at 20% equity, and rates stay competitive because lenders can sell these loans to the agencies.
Most Claremont buyers start here. The approval process moves faster than government loans, and you avoid VA or FHA restrictions on property condition.
Jumbo loans finance anything above the conforming limit. In Claremont's hillside neighborhoods, that's most single-family homes with any land.
Lenders take on more risk without Fannie or Freddie backing the loan. They price that risk into rates and require stronger financial profiles to approve.
Expect 10-20% down depending on the lender. Some portfolio lenders we work with go lower, but you pay for it in rate. Credit standards sit around 680-700 minimum.
The conforming limit draws a hard line. Below $1,149,825, conventional gives you better rates and easier approval. Above it, jumbo is your only non-government option.
Conventional caps at 50% debt-to-income in most cases. Jumbo lenders often want 43% or lower, especially on larger loan amounts. They also scrutinize assets more carefully.
Rate difference varies by market conditions. Right now we see jumbo running 0.25-0.50% higher for strong borrowers. Rates vary by borrower profile and market conditions.
PMI works differently too. Conventional has clear PMI drop-off rules. Many jumbo lenders build the insurance cost into the rate instead, which you can't remove later.
You don't choose between these loans. Your purchase price chooses for you. Stay under $1,149,825 and conventional wins on rate and approval odds every time.
Above that limit, jumbo is the play. Focus on finding the right lender rather than the loan type. Some jumbo lenders price aggressively for doctors or tech workers. Others specialize in investment properties.
If you're close to the limit, consider structuring differently. A larger down payment to stay conventional can beat the rate increase from going jumbo. Run both scenarios with actual numbers before deciding.
$1,149,825 for single-family homes in LA County. That's the 2024 high-cost area limit set by FHFA.
Yes. If you can bring enough cash to keep the loan under $1,149,825, conventional almost always costs less over time.
Not always. We have lenders who go to 10-15% down on jumbo loans, though you'll pay a rate premium for it.
Conventional typically closes in 21-30 days. Jumbo takes 30-45 days due to stricter underwriting and appraisal requirements.
Yes, but expect 20-25% down minimum and higher rates than primary residence jumbo loans. Debt-to-income standards get tighter too.