Question 1

What's the exact loan limit for Covina?

Accepted Answer

$832,750 for single-family homes in Los Angeles County. Anything above requires jumbo financing with different underwriting standards.

Question 2

Can I get a jumbo loan with 10% down?

Accepted Answer

Yes, but expect higher rates and stricter requirements. 20% down gets you significantly better pricing from most lenders.

Question 3

Do jumbo loans always have higher rates?

Accepted Answer

Usually by 0.25-0.50%, though spreads vary by market. Strong credit and large down payments narrow the gap considerably.

Question 4

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

Accepted Answer

Not on most conventional loans. You'll pay PMI until you hit 20% equity through payments or appreciation.

Question 5

How many months of reserves do jumbo lenders require?

Accepted Answer

Typically 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts demand more reserves.

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