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in Covina, CA
Covina sits in a sweet spot where some homes fall under conventional loan limits while others push into jumbo territory. Understanding which loan type you need matters because it affects your rate, down payment, and approval odds.
The dividing line is $806,500 for Los Angeles County in 2025. Properties above that number require jumbo financing with stricter requirements.
Conventional loans work for most Covina buyers because they're backed by Fannie Mae and Freddie Mac. You can put down as little as 3% with good credit, though you'll pay PMI until you hit 20% equity.
Rates typically beat jumbo products by 0.25-0.50%. Underwriting follows standard guidelines with credit scores as low as 620 accepted, though you'll get better pricing at 740+.
Jumbo loans cover properties above $806,500 in Los Angeles County. Banks hold these loans in portfolio instead of selling them, so they set tougher standards to protect themselves.
Expect to put down 10-20% minimum with credit scores above 700. Lenders scrutinize reserves harder, often requiring 6-12 months of payments in the bank after closing.
The loan limit is the obvious split, but jumbo loans also demand more documentation. You'll need two appraisals on most jumbo purchases, and lenders verify employment right before closing without exception.
Debt-to-income limits tighten on jumbos. Conventional loans allow up to 50% DTI in some cases, while jumbo lenders cap you at 43-45%. Cash reserves matter more because lenders want proof you can handle payments if income drops.
If your Covina purchase is under $806,500, conventional wins on price and flexibility. The lower down payment and relaxed credit requirements make qualification easier for most W-2 earners.
Above that limit, you have no choice but jumbo. Focus on building reserves and cleaning up credit before applying. A 740+ score and 20% down gets you the best jumbo pricing we see across lenders.
$806,500 for single-family homes in Los Angeles County. Anything above requires jumbo financing with different underwriting standards.
Yes, but expect higher rates and stricter requirements. 20% down gets you significantly better pricing from most lenders.
Usually by 0.25-0.50%, though spreads vary by market. Strong credit and large down payments narrow the gap considerably.
Not on most conventional loans. You'll pay PMI until you hit 20% equity through payments or appreciation.
Typically 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts demand more reserves.