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in Hawthorne, CA
Hawthorne sits in a pricing sweet spot where many buyers face a real choice between conventional and jumbo financing. The loan limit threshold determines which path you'll take—and it affects your rate, down payment, and approval odds.
Conventional loans cap at $806,500 in Los Angeles County for 2024. Anything above that requires jumbo financing, which plays by different underwriting rules.
Conventional loans follow Fannie Mae and Freddie Mac guidelines, which means standardized approval criteria and competitive rates. You can put down as little as 3% with strong credit, though most Hawthorne buyers aim for 5-10% to avoid mortgage insurance costs.
These loans work well for condos, single-family homes, and small multifamily properties under the conforming limit. Credit scores as low as 620 qualify, but you'll see your best pricing above 740.
Jumbo loans kick in when your purchase price exceeds $806,500—common for upgraded properties or prime Hawthorne locations. These aren't government-backed, so lenders set their own rules and price for the added risk.
Expect stricter requirements: most jumbo lenders want 20% down minimum, credit scores above 700, and debt-to-income ratios under 43%. You'll also need 6-12 months of reserves in the bank after closing.
The biggest split is down payment. Conventional loans let you start at 3-5%, while jumbo lenders rarely budge below 20%. That's a $161,000 difference on an $806,500 purchase—conventional needs $24,195, jumbo needs $185,300.
Rates sometimes favor jumbo loans for well-qualified borrowers, but underwriting takes longer and scrutinizes income sources more closely. Jumbo lenders verify everything twice and want to see stable employment history stretching back two years minimum.
If your Hawthorne purchase stays under $806,500, conventional is the straightforward choice—lower down payment, easier qualification, and you're done. The decision only gets interesting when you're buying above that threshold or have cash to put 20% down on a property that could go either way.
Buyers stretching to $850,000-900,000 sometimes find jumbo rates competitive enough to offset the higher down payment requirement. But if you're at $750,000 with 10% down and good credit, conventional wins every time. Run the numbers on both before you commit.
$806,500 for single-family homes in Los Angeles County. Anything above requires jumbo financing with different qualification standards.
Some lenders offer 10-15% down jumbo programs, but expect higher rates and stricter credit requirements. Most Hawthorne buyers need 20% to get competitive pricing.
Not always. Borrowers with 740+ credit and strong income sometimes see lower jumbo rates. It depends on your profile and current market conditions.
Most lenders want 6-12 months of mortgage payments in the bank after closing. That's on top of your down payment and closing costs.
Yes, up to four units. Loan limits increase for 2-4 unit properties—$1,032,000 for a duplex in LA County.