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in Lancaster, CA
Lancaster's housing market sits in an interesting zone. Most homes stay under conforming limits, but luxury properties in newer developments push past $766,550.
The loan you pick depends on your purchase price. Cross that conforming threshold and you're shopping jumbo rates with tighter approval requirements.
Conventional loans work for most Lancaster buyers. You need 620+ credit and 3% down minimum, though 20% down skips mortgage insurance.
These loans follow Fannie Mae and Freddie Mac guidelines. Lenders compete hard on these, so you'll see the tightest rate spreads and lowest fees.
Jumbo loans finance homes above $766,550 in Los Angeles County. Lenders take more risk, so they want 700+ credit and 10-20% down depending on the amount.
Expect stricter debt ratios and bigger cash reserves. Most jumbo lenders want 6-12 months of mortgage payments sitting in your accounts after closing.
The conforming limit is the hard line. Buy at $750,000 and you're conventional. Buy at $800,000 and you're shopping jumbo rates.
Jumbo loans cost more to originate and carry more risk for lenders. Rates run 0.25-0.75% higher than conventional, though the gap shrinks with strong credit and big down payments.
Documentation gets pickier on jumbos. Two years of tax returns, full asset verification, and employment verification right before closing. Conventional loans are more forgiving on borderline ratios.
If your Lancaster purchase stays under $766,550, conventional wins. Better rates, easier approval, and you can put down as little as 3% with solid credit.
Cross into jumbo territory and you need strong financials. Think 720+ credit, stable W-2 income, and enough reserves to cover a year of payments. Self-employed borrowers face extra scrutiny on jumbo apps.
Some buyers split the difference with an 80-10-10 structure: conventional first, HELOC second, 10% down. Works if you want to avoid jumbo pricing but lack 20% cash.
$766,550 for Los Angeles County. Anything above that requires jumbo financing with different approval standards.
Yes, but expect higher rates and stricter approval. Most lenders prefer 20% down on jumbo loans to offer competitive pricing.
Usually, yes. The rate premium runs 0.25-0.75% higher, though strong credit and big down payments narrow the gap.
Conventional allows 620 minimum. Jumbo lenders typically want 700+, with best pricing at 740 or higher.
You can structure an 80-10-10: conventional first at $613,240, HELOC for $76,655, and 10% down. Keeps you under conforming limits.