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in Lakewood, CA
Lakewood sits in a price range where many buyers face a choice: stick with conventional financing or move into jumbo territory. The conforming loan limit for 2024 in Los Angeles County is $766,550 for a single-family home.
Cross that threshold and you're shopping jumbo loans with different rules. Most Lakewood properties fall under the limit, but newer construction and larger homes push buyers into jumbo range.
Conventional loans are backed by Fannie Mae or Freddie Mac, which means lenders follow standardized underwriting. You can put down as little as 3% with strong credit, though you'll pay PMI until you hit 20% equity.
These loans offer the most flexibility on property types and debt-to-income ratios. Rates are competitive because the loans get sold to the secondary market immediately.
Jumbo loans exceed conforming limits and stay on lender balance sheets. Because lenders hold the risk, they scrutinize income, assets, and credit more carefully than they do with conventional files.
You'll typically need 10-20% down and reserves to cover 6-12 months of payments. Credit scores below 700 make approval difficult. The upside: no PMI regardless of down payment size.
The biggest split is loan amount. Under $766,550 you're shopping conventional. Above that threshold you're in jumbo territory with tighter approval standards and often higher rates.
Conventional loans require less cash to close and accept higher debt ratios. Jumbo loans demand bigger down payments and deeper reserves but skip PMI entirely. I've seen rate differences range from identical to 0.5% higher on jumbos depending on the lender and borrower profile.
If your Lakewood purchase is under $766,550, conventional wins on cost and flexibility. You'll qualify easier and close with less cash. Shopping above that limit puts you in jumbo range whether you like it or not.
For homes just over the conforming limit, consider a larger down payment to stay conventional. On a $800,000 purchase, putting down $50,000 instead of $40,000 keeps you under the threshold and saves thousands in higher jumbo costs. Run the math on both scenarios before committing.
The 2024 conforming limit for Los Angeles County is $766,550 for a single-family home. Anything above that requires jumbo financing.
Yes. Jumbo loans don't require PMI at any down payment level, unlike conventional loans which charge PMI below 20% equity.
Not always. Rate differences depend on your credit profile and lender. I've seen identical rates and spreads up to 0.5% higher on jumbos.
Most jumbo lenders require 6-12 months of mortgage payments in liquid reserves after closing. Higher loan amounts demand more reserves.
Yes, but expect higher rates and at least 15% down. Jumbo investment property loans require 20-30% down with strict qualification.