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in Downey, CA
Downey sits in a price sweet spot where some buyers hit conventional loan limits while others sail under them. The line between these two loan types matters because it changes your rate, down payment, and reserve requirements.
Most Downey properties fall under the 2025 conforming limit of $806,500 for Los Angeles County. Cross that threshold and you're in jumbo territory, where lenders set their own rules.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% on a primary residence, though you'll pay PMI until you hit 20% equity.
These loans max out at the conforming limit, which works fine for most Downey buyers. Credit requirements start at 620 for many programs, but 680+ gets you better pricing.
Jumbo loans finance anything above conforming limits. Each lender sets its own guidelines since Fannie and Freddie don't buy these loans.
Expect stricter requirements: 10-20% down minimums, 700+ credit scores, and 6-12 months of reserves. Rates fluctuate more than conventional because lenders hold the risk themselves.
The biggest split is underwriting strictness. Conventional loans follow published standards. Jumbos vary by lender and market conditions.
Down payment requirements differ too. You can get into a conventional loan with 3% down. Jumbo lenders want 10-20%, though some go lower for strong borrowers. Cash reserves matter more on jumbos—most lenders want proof you can cover 6-12 months of payments.
You don't choose between these—the purchase price decides for you. Buying under $806,500 in Downey? You're using conventional. Above that number? Jumbo is your only option.
Where you do have control: if you're close to the limit, staying under it opens up easier qualification. A $795,000 purchase beats $815,000 in underwriting simplicity, even if the extra $20,000 buys more house.
$806,500 for 2025 in Los Angeles County. Anything above that requires a jumbo loan.
Yes, but you need 20% down. Below that, PMI applies until you reach 20% equity through payments or appreciation.
Not always. Strong borrowers sometimes get jumbo rates close to or below conventional, but it varies by lender and market conditions.
Most lenders want 6-12 months of mortgage payments in liquid assets after closing. Requirements increase with loan size.
Yes, but expect 15-25% down and higher rates than owner-occupied. The $806,500 limit still applies.