Loading
in Culver City, CA
Culver City home prices regularly push past conforming loan limits. That's when conventional loans hit their ceiling and jumbo financing takes over.
The line between these two options sits at $806,500 for single-family homes in Los Angeles County. Above that number, you're in jumbo territory with different rules.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. They offer the most flexibility for purchase amounts up to $806,500.
You can put down as little as 3% on a primary residence. Credit scores starting at 620 qualify, though better rates kick in at 740-plus.
Rates stay competitive because these loans get sold to the secondary market. Lenders price them aggressively since they're easy to package and resell.
Jumbo loans finance properties above conforming limits. In Culver City, that covers most single-family homes and higher-end condos.
Expect stricter underwriting than conventional. Most lenders want 700-plus credit and 10-20% down minimum, though some programs go lower.
Rates run close to conventional now, sometimes even lower. The jumbo rate premium has mostly disappeared as portfolio lenders compete for this business.
The loan limit creates the hard split. Below $806,500, conventional wins on flexibility and lower down payments. Above it, jumbo is your only option.
Jumbo loans demand stronger financials across the board. Lenders want bigger reserves, lower debt ratios, and more income documentation.
Conventional allows higher debt-to-income ratios, up to 50% in some cases. Jumbo lenders typically cap DTI at 43%, sometimes 45% with compensating factors.
Both loan types require full income verification and appraisals. The difference shows up in how much cushion lenders require on reserves and ratios.
If you're buying under $806,500, conventional gives you better terms. Lower down payments, easier qualification, and more flexibility on credit and reserves.
Above that limit, jumbo is your path. Focus on building strong reserves and keeping debt ratios conservative before you apply.
Some buyers split the difference with a conventional first and second lien combo. This works when you want to avoid jumbo underwriting but need more than $806,500.
Your actual rate depends on credit score, down payment, and property type. We shop both conventional and jumbo across 200+ lenders to find your best pricing.
$806,500 for single-family homes in Los Angeles County. Anything above that requires jumbo financing.
Not anymore. Jumbo rates now track closely with conventional, sometimes even lower depending on your profile.
Yes, several lenders offer 10% down jumbo programs. You'll need strong credit and reserves to qualify.
Not typically. Most jumbo lenders don't charge PMI regardless of down payment size.
Most lenders want 700 minimum. You'll get best pricing at 740 and above.