Loading
in Cudahy, CA
Most Cudahy buyers use conventional loans because homes here rarely hit jumbo territory. But if you're eyeing a rare high-value property or planning major renovations, a jumbo loan might be your only path forward.
The line between these two loans sits at the conforming loan limit—$806,500 in Los Angeles County for 2025. Cross that threshold and you're in jumbo territory, where rules change fast.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% and avoid PMI once you hit 20% equity.
Credit requirements start around 620, though 740+ gets you the best rates. Income limits don't apply, and you can use the loan for primary homes, second homes, or investment properties.
These loans offer the most flexibility in Los Angeles County. Lenders compete hard on pricing because Fannie and Freddie buy the loans, creating a liquid secondary market.
Jumbo loans finance anything above $806,500 in Los Angeles County. Banks hold these on their own books, so they set stricter rules than conventional loans.
Expect to put down 10-20% minimum. Credit scores typically need to be 700+, and some lenders want 740 for the sharpest rates.
You'll also face reserve requirements—usually 6-12 months of mortgage payments sitting in the bank after closing. Debt-to-income ratios max out around 43%, sometimes lower depending on the lender.
The biggest split is down payment and reserves. Conventional loans let you slide in with 3% down and minimal savings. Jumbo lenders want 10-20% down plus a fat cushion in the bank.
Rates used to run higher on jumbos, but that gap has closed. Sometimes jumbos price better than conventional, especially for borrowers with stellar credit and big down payments.
Conventional loans get sold to Fannie and Freddie, creating uniform underwriting. Jumbo loans stay with the lender, so each bank writes its own playbook. That means more negotiating room but less predictability.
If your Cudahy purchase stays under $806,500, conventional wins on flexibility and lower barriers to entry. Most buyers here won't need a jumbo unless they're building custom or buying multiple properties.
Jumbo becomes necessary when you cross the conforming limit. Even then, you might split the loan—put $806,500 on a conventional first and finance the rest with a second lien or HELOC to avoid full jumbo pricing.
Run the numbers both ways. We shop across 200+ lenders, so we can model conventional vs jumbo and hybrid structures to find the cheapest total cost.
$806,500 for single-family homes. Anything above that requires a jumbo loan.
Yes. If the purchase price minus your down payment stays under $806,500, you stay conventional.
Not anymore. Jumbos sometimes price better for high-credit borrowers with 20%+ down.
No. Jumbo loans require 10-20% down minimum, depending on the lender.
Most lenders want 6-12 months of mortgage payments in liquid accounts after closing. Conventional loans rarely require this.
Sometimes. We model both structures to see which saves more over the loan term.