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in Gardena, CA
Gardena sits at an interesting price point in Los Angeles County—low enough that most buyers use conventional loans, but rising values mean some properties now need jumbo financing. The line between these two loan types matters because it affects your rate, down payment, and approval odds.
Conventional loans follow FHFA limits and typically offer lower rates with easier qualification. Jumbo loans cover anything above those limits but require stronger financials and larger down payments.
Conventional loans are backed by Fannie Mae or Freddie Mac, which means lenders follow standardized guidelines. You can put down as little as 3% if you're a first-time buyer, though 5-20% is more common for Gardena properties.
These loans max out at $806,500 in Los Angeles County for 2024. Credit score requirements start at 620, but you'll get better rates at 740 or higher. PMI applies below 20% down but drops off once you hit that equity threshold.
Jumbo loans kick in above $806,500 in LA County. Lenders take on more risk without government backing, so they demand stronger borrower profiles and bigger down payments—usually 10-20% minimum depending on the property price.
Expect stricter debt-to-income limits, often capped at 43%. Most lenders want to see 6-12 months of cash reserves after closing. Credit scores below 700 make approval tough, and rates typically run higher than conventional options.
The biggest split is loan limits—conventional caps at $806,500, jumbo covers everything above. Rate differences usually favor conventional by 0.25-0.75%, though competitive jumbo rates exist for strong borrowers with 20%+ down.
Down payment flexibility differs sharply. Conventional allows 3-5% down for qualified buyers. Jumbo lenders rarely go below 10%, and many require 15-20% for loans over $1.5 million. Reserve requirements also jump with jumbo loans—expect to show significant cash after closing.
If your Gardena purchase stays under $806,500, conventional wins on flexibility and cost. You'll qualify easier, put less down, and likely lock a better rate. Most Gardena properties fall in this range, making conventional the default choice.
Jumbo makes sense only when your target property exceeds conventional limits. You'll need stronger credit, more cash, and higher income to qualify. If you're buying a higher-end Gardena home or moving up from a smaller property, jumbo financing becomes necessary rather than optional.
Jumbo loans start above $806,500 in Los Angeles County for 2024. Anything at or below that amount qualifies as conventional financing.
Some lenders allow 10% down on jumbo loans, but most prefer 15-20% for stronger approval odds. Your credit and reserves matter as much as down payment size.
Typically yes, by 0.25-0.75%. Strong borrowers with 20%+ down can sometimes find competitive jumbo rates that approach conventional pricing.
Yes. Conventional loans start at 620 credit, while jumbo lenders strongly prefer 700+. Some jumbo programs require 720 or higher for best terms.
Yes, but expect different qualification requirements. Your lender will re-run numbers for jumbo guidelines, which means higher scrutiny on income, assets, and credit.