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in Duarte, CA
Duarte sits in a unique spot where home prices can swing from modest ranches to hillside estates. That price range is exactly where conventional loan limits end and jumbo territory begins.
The difference between these two loans isn't just about loan size. Approval standards, down payments, and rates all shift once you cross the conforming limit line.
Conventional loans are what most lenders prefer to write. They follow Fannie Mae and Freddie Mac guidelines, which means predictable underwriting and competitive pricing.
You can put down as little as 3% on some conventional loans. Credit requirements start around 620, though better scores unlock lower rates. PMI drops off once you hit 20% equity.
Jumbo loans kick in when your loan amount exceeds what Fannie and Freddie will buy. That means lenders hold the risk themselves, so they tighten the screws on approval.
Expect to put down 10-20% minimum. Credit scores below 700 make approval tough. You'll need cash reserves covering 6-12 months of payments, and your debt ratios get scrutinized harder.
The conforming loan limit is the hard line between these two products. In Los Angeles County, that limit runs higher than most of the country, but Duarte's pricier hillside properties still push past it.
Jumbo loans demand more documentation and stricter debt ratios. Where conventional might accept 43-50% DTI, jumbo lenders often cap you at 43% or lower. Rates vary by borrower profile and market conditions, but jumbos sometimes price competitively when you bring strong credit and equity.
If your Duarte home falls under the conforming limit, conventional is the easier path. Lower down payments, more flexible underwriting, and simpler approval make it the default choice for most buyers.
Jumbo becomes necessary when you're buying above the limit. The tougher requirements aren't negotiable. If you can't show strong reserves, low debt ratios, and solid credit, you'll struggle to get approved regardless of how much you want the property.
Los Angeles County uses a higher limit than the baseline national figure. Your specific property and whether it's a single-family home or multi-unit determines the exact cap.
No. If the purchase price pushes your loan amount above the conforming limit, it's a jumbo loan. Down payment size doesn't change the loan category.
Not always. Strong borrowers with 20%+ down sometimes get competitive jumbo pricing. Rates vary by borrower profile and market conditions.
Not perfect, but strong. Most jumbo lenders want 700+ scores, though some will go to 680 with compensating factors like larger down payments.
Some lenders allow it with excellent credit and strong reserves. Most prefer 15-20% down for more comfortable approval.