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in Hermosa Beach, CA
Hermosa Beach sits right where most buyers cross from conventional into jumbo territory. The median home price here pushes many borrowers past the $766,550 conforming limit.
This comparison matters because the loan type determines your rate, down payment, and approval odds. Most beach buyers need to know both options cold before they make an offer.
Conventional loans max out at $766,550 in Los Angeles County for 2024. You can put down as little as 3% with good credit, though 20% skips PMI and gets better rates.
These loans work if you're buying a condo or smaller home near the beach. Lenders price them aggressively because Fannie and Freddie guarantee the paper. Credit score minimums start at 620, but you want 740+ for top pricing.
Jumbo loans cover anything above $766,550 with no upper limit. Most Hermosa Beach single-family homes fall into jumbo territory given local pricing.
You'll need 10-20% down depending on the lender and loan amount. Credit requirements run stricter—most want 700 minimum, 740 for competitive rates. Expect tougher income verification and larger cash reserves.
The rate gap used to be massive, but jumbos now price within 0.125-0.375% of conventional on strong deals. The real difference shows up in underwriting—jumbos demand more documentation and reserves.
Conventional loans forgive more credit dings and accept higher debt ratios. Jumbo lenders want 6-12 months reserves and scrutinize every deposit. If you're self-employed or have complex income, that documentation burden matters more than the rate difference.
If you're buying under $766,550, conventional wins every time. Lower down payment, easier approval, better rates. Most condos and townhomes in Hermosa Beach still fit this limit.
Above that threshold, you're in jumbo territory whether you like it or not. Focus on building a clean file—strong credit, documented income, solid reserves. The difference between a messy jumbo approval and a clean one is often 0.5% in rate, which costs real money on a $1.5M loan.
Anything above $766,550 is jumbo in LA County. That threshold covers most single-family homes here given current pricing.
No. Once you cross $766,550, it's jumbo regardless of down payment. You can't shrink your way back into conventional limits.
Not always. Some lenders go to 10% down on jumbos, though 20% unlocks better rates and easier approval.
Conventional typically beats jumbo by 0.125-0.375%. Strong borrowers see smaller gaps. Rates vary by borrower profile and market conditions.
Yes, if the price stays under $766,550. Most condos and smaller properties still fit. Single-family homes usually require jumbo.