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in La Habra Heights, CA
La Habra Heights sits in the hills above the LA basin where home prices often push past conforming loan limits. That's when conventional loans hit a ceiling and jumbo loans become your only option.
The line between these two loan types is sharp: $806,500 for a single-family home in Los Angeles County in 2025. Above that number, you're in jumbo territory with different rules on everything from credit scores to reserves.
Conventional loans work for homes priced under $806,500. You can put down as little as 3% with private mortgage insurance, and most borrowers qualify with a 620 credit score.
These loans follow Fannie Mae and Freddie Mac guidelines, which means consistent underwriting across lenders. You'll find the most competitive rates here because the loans get bundled and sold on the secondary market.
Down payments under 20% trigger PMI, which costs 0.3% to 1.5% of your loan amount annually. That insurance drops off once you hit 20% equity through payments or appreciation.
Jumbo loans cover purchase prices above $806,500 with no upper limit. Lenders keep these loans on their books instead of selling them, so underwriting gets stricter.
Expect to put down at least 10%, though many lenders want 20% on purchases over $1 million. Credit score minimums hover around 680 to 700, and you'll need 6 to 12 months of reserves in the bank after closing.
Rates on jumbos used to run higher than conventional, but that gap has narrowed. Some borrowers even get lower jumbo rates when they bring strong credit and hefty down payments.
The biggest split is flexibility. Conventional loans forgive more on credit, down payment, and cash reserves because Fannie and Freddie guarantee the loans. Jumbo lenders take direct risk, so they screen harder.
Documentation requirements tighten on jumbos. You'll provide full tax returns even as a W-2 earner, plus complete asset statements. Conventional loans often skip tax returns for salaried borrowers with clean files.
Rate pricing flips based on your profile. Strong borrowers with 20%+ down might pay less on a jumbo than a conventional. But if you're stretching on down payment or credit, conventional wins on rate every time.
If your purchase price stays under $806,500, conventional is the clear choice. You get better flexibility on down payment, easier qualification standards, and the option to avoid reserves if your file is clean.
Above that limit, jumbo is your only path. Focus on building your credit above 700 and stacking 12 months of reserves before you shop. Strong jumbo borrowers often get excellent terms, but you need a solid financial profile to unlock them.
Some borrowers split the difference with an 80-10-10 structure: conventional first at $806,500, 10% second lien, and 10% down. That avoids jumbo underwriting but adds complexity. We shop both routes to find your best cost.
$806,500 for a single-family home in Los Angeles County. Anything above that requires a jumbo loan.
Yes, but expect higher rates and stricter credit requirements. Most lenders prefer 20% down on purchases over $1 million.
No. Jumbo loans don't use PMI, but lenders require larger down payments and reserves instead.
It depends on your profile. Strong borrowers often get lower jumbo rates, but conventional wins if your credit or down payment is tight.
Typically 6 to 12 months of mortgage payments sitting in the bank after closing. Higher loan amounts require more reserves.
Yes, with an 80-10-10 structure: conventional first plus a second lien. We'll model both options to see which costs less long-term.