Question 1

What is the conforming loan limit in Los Angeles County for 2026?

Accepted Answer

The 2026 conforming limit is $1,249,125. This applies to conventional, FHA, and VA loans. Loans above this amount are jumbo.

Question 2

Do I need 20% down to avoid PMI on a conventional loan?

Accepted Answer

Yes — 20% down (80% LTV) eliminates PMI entirely. Below 20% down, PMI applies. PMI cancels at 78% LTV.

Question 3

Is Los Angeles County an FHA high-cost area?

Accepted Answer

Yes. Los Angeles County is designated a high-cost area for FHA lending. This affects loan limits at higher purchase prices.

Question 4

What credit score do I need for an FHA loan?

Accepted Answer

FHA requires a minimum 580 FICO score for 3.5% down. Scores of 620+ open more lender options and better terms.

Question 5

How much does FHA mortgage insurance cost?

Accepted Answer

FHA upfront MIP is 1.75% of the loan amount. Annual MIP runs for life if down payment is under 10%. With 10%+ down it cancels after 11 years.

Question 6

Can I use a VA loan with zero down in Downey?

Accepted Answer

Yes — eligible veterans, active duty, and surviving spouses with a Certificate of Eligibility can buy with zero down. The VA funding fee replaces PMI.

Question 7

What is the VA funding fee and when is it waived?

Accepted Answer

The VA funding fee is 2.15% at zero down for first use. It's waived only for veterans with a 10% or higher VA disability rating.

Question 8

Do jumbo loans require 20% down?

Accepted Answer

Yes. Jumbo loans typically require 20% down minimum. Lenders also want 6-12 months reserves and usually 700+ FICO. Rates run 0.125% to 0.5% above conforming.

Question 9

How does LAUSD's fiscal situation affect my home purchase in Downey?

Accepted Answer

LAUSD's oversight status may influence school-related property values and buyer sentiment. Review the district's recovery plan if schools matter to your decision.

Question 10

What does Los Angeles County's median household income tell me?

Accepted Answer

Los Angeles County's median household income is $87,760. This benchmark helps lenders assess income-qualifying loans and local purchasing power.

Question 11

Can I get a jumbo loan above $1,249,125 in Downey?

Accepted Answer

Yes. Jumbo loans exceed the $1,249,125 conforming limit. Expect stricter credit, larger down payment, and rates above conventional.

Question 12

What is the difference between FHA and VA loans in this county?

Accepted Answer

Both cap at $1,249,125 in Los Angeles County for 2026. VA offers zero down with no PMI; FHA requires 3.5% down with mortgage insurance.

Question 13

How long does it take to close a home loan in California?

Accepted Answer

Typical closing takes 30-45 days from application to funding. Jumbo and complex files may run 45-60 days. Clear title and fast appraisals help.

Downey mortgage questions answered