Loading
in Huntington Park, CA
Most Huntington Park buyers finance with conventional loans, which follow FHFA conforming limits. When you're buying above $806,500 in LA County, you need a jumbo loan instead.
The difference isn't just loan size. Jumbo loans require stronger credit, bigger down payments, and more cash reserves than conventional financing.
Conventional loans follow FHFA guidelines, meaning lenders can sell them to Fannie Mae or Freddie Mac. That backing lets lenders offer competitive rates and flexible terms.
You can put down as little as 3% on a conventional loan. PMI applies below 20% down, but you can cancel it once you hit that equity threshold.
Credit requirements start at 620, though you'll get better rates at 740+. Most conventional loans in Huntington Park finance single-family homes and condos under the conforming limit.
Jumbo loans exceed conforming limits set by FHFA. In Los Angeles County, that's anything over $806,500 for a single-family home.
Without government backing, lenders take on more risk. They offset that with stricter requirements: typically 700+ credit scores, 10-20% down, and 6-12 months of reserves.
Jumbo rates used to run higher than conventional, but that gap has narrowed. Strong borrowers often get competitive pricing, especially on larger loan amounts.
The conforming loan limit divides these options. Below $806,500, conventional makes sense for most buyers. Above that threshold, jumbo is your only choice.
Credit standards differ significantly. Conventional loans work at 620 credit with higher rates. Jumbo lenders want 700+ and won't budge much below that.
Down payment flexibility separates them too. Conventional allows 3% down on primary homes. Jumbo typically requires 10% minimum, with 20% down getting you the best terms and rates.
Your purchase price makes this decision for you most of the time. Buying under $806,500 in Huntington Park? Conventional financing gives you better flexibility and lower barriers to entry.
Above the conforming limit, jumbo is required. Make sure you have strong credit, substantial reserves, and at least 10% down before you start shopping in that price range.
Some buyers qualify for both on properties near the limit. In those cases, conventional usually wins on cost and requirements, unless you're putting down 20%+ anyway.
Jumbo loans start at $806,501 in Los Angeles County. Anything at or below $806,500 qualifies for conventional financing.
Yes, some lenders allow 10% down on jumbo loans. You'll get better rates and terms with 20% down, and you'll need strong credit either way.
Not necessarily. Rates vary by borrower profile and market conditions, but qualified jumbo borrowers often get competitive rates similar to conventional loans.
Conventional loans start at 620 credit. Jumbo lenders typically require 700+ for approval and best pricing.
Most jumbo lenders want 6-12 months of reserves covering your mortgage payment. Higher loan amounts may require more reserves.