Question 1

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

Accepted Answer

The 2026 conforming limit is $1,249,125. FHA and VA loans also cap at $1,249,125. Loans above that amount require jumbo financing.

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 automatically at 78% LTV or on request at 80% LTV.

Question 3

What credit score do I need for a conventional loan?

Accepted Answer

Most lenders require 620+ FICO for conventional loans. Stronger scores (740+) qualify for better rates. Some programs accept lower scores with compensating factors.

Question 4

How much down payment do FHA loans require?

Accepted Answer

FHA loans require a minimum 3.5% down payment with 580+ FICO. Upfront mortgage insurance (MIP) is 1.75% of the loan amount. Annual MIP continues for life if down payment is under 10%.

Question 5

Can I get a VA loan with zero down if I'm eligible?

Accepted Answer

Yes — eligible veterans, active duty, and surviving spouses can use VA loans with zero down. There's no PMI, but a funding fee applies (2.15% at zero down for first use). VA disability rating of 10% or higher exempts you from the funding fee.

Question 6

Is Hermosa Beach in an FHA high-cost area?

Accepted Answer

Yes. Los Angeles County is an FHA high-cost area. FHA loan limits match the conforming limit of $1,249,125 here.

Question 7

Is Los Angeles County a VA high-cost area?

Accepted Answer

Yes. VA loan limits in Los Angeles County are $1,249,125 for 2026. VA buyers can finance up to that amount with zero down.

Question 8

What does LAUSD's fiscal oversight mean for Hermosa Beach buyers?

Accepted Answer

LA County placed LAUSD under heightened fiscal oversight due to budget concerns. This may affect school funding and property values. Factor in potential school district changes when deciding.

Question 9

How does the studio merger affect the local job market?

Accepted Answer

The Paramount-Skydance merger could affect approximately 2,495 jobs in LA County's entertainment sector. Some positions may relocate or be eliminated. Consider local employment stability when buying.

Question 10

What's the difference between a jumbo loan and a conforming loan?

Accepted Answer

Conforming loans cap at $1,249,125 in Los Angeles County. Jumbo loans exceed that limit. Jumbo rates typically run 0.125% to 0.5% higher and require 700+ FICO and 20%+ down.

Question 11

Can I use USDA financing in Hermosa Beach?

Accepted Answer

USDA loans are available only in USDA-designated rural areas. Hermosa Beach is an urban coastal community and does not qualify. Conventional, FHA, or VA loans are your primary options.

Question 12

How long does it take to close on a home in Hermosa Beach?

Accepted Answer

Most conventional loans close in 30-45 days. FHA and VA loans may take 45-60 days due to additional requirements. Jumbo loans can extend to 45-60 days depending on the lender.

Question 13

What are typical closing costs in Los Angeles County?

Accepted Answer

Closing costs typically range from 2% to 5% of the purchase price. This includes appraisal, title, escrow, and lender fees. FHA and VA loans may have slightly different structures.

Question 14

Can I buy before selling my current home?

Accepted Answer

Yes. You can buy before selling if you qualify for both mortgages. However, lenders will count both payments toward your debt-to-income ratio. Selling first simplifies qualification.

Question 15

What's the minimum down payment for a first-time buyer?

Accepted Answer

FHA allows 3.5% down with 580+ FICO. Conventional loans start at 3% down but require 620+ FICO and PMI. VA and USDA (if eligible) offer zero down.

Hermosa Beach mortgage questions answered