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in Lomita, CA
Lomita sits in a price zone where many buyers face a critical choice. You're either shopping within conventional loan limits or crossing into jumbo territory.
The difference isn't just loan size. Requirements, rates, and approval standards shift dramatically once you exceed conforming limits set by federal regulators.
Conventional loans max out at $806,500 for single-family homes in Los Angeles County. These loans get sold to Fannie Mae or Freddie Mac, which keeps rates competitive.
You can put down as little as 3% with acceptable credit. PMI applies below 20% down, but you can cancel it once you hit that equity threshold.
Most conventional approvals happen with 620+ credit and debt ratios under 50%. The guidelines are standardized, so lenders have less flexibility on exceptions.
Jumbo loans start where conventional limits end. In Los Angeles County, that means anything over $806,500 requires jumbo financing.
Expect tougher approval standards. Most lenders want 700+ credit, 10-20% down minimum, and debt ratios below 43%.
You're also looking at larger reserve requirements. Six to twelve months of payments in the bank after closing is common, especially on higher loan amounts.
Rates vary by borrower profile and market conditions. Strong credit and larger down payments can sometimes land jumbo rates that match or beat conventional.
The loan limit is the obvious divider. But qualification standards create the real gap between these products.
Conventional loans follow federal guidelines with room for automated approval. Jumbo underwriting involves more manual review and documentation scrutiny.
Down payment differences matter too. Conventional allows 3% down. Jumbo typically requires 10% minimum, often 20% for the best rates and terms.
Reserve requirements separate cautious buyers from those with deep cash positions. Conventional might need two months reserves. Jumbo lenders often want six to twelve months sitting in verified accounts.
Your purchase price makes the first cut. Buying under $806,500 means conventional is an option. Above that number, you're shopping jumbo programs.
If your price sits near the limit, running both scenarios makes sense. Sometimes splitting the difference with a slightly lower purchase keeps you in conventional territory with easier approval.
Financial strength determines jumbo viability. You need documented income, solid credit, low debt ratios, and significant reserves. Conventional works for borrowers still building those metrics.
Rates vary by borrower profile and market conditions. Strong jumbo candidates sometimes get better pricing than marginal conventional borrowers paying PMI and higher rates for risk.
The limit is $806,500 for single-family homes. Anything above requires jumbo financing with different qualification standards.
Some lenders allow 10% down on jumbo loans. Expect higher rates and stricter requirements compared to 20% down programs.
Not always. Strong credit and large down payments can yield jumbo rates that match or beat conventional. Rates vary by borrower profile and market conditions.
Most lenders want 6-12 months of mortgage payments in verified accounts after closing. Higher loan amounts typically require more reserves.
No. PMI applies on conventional loans below 20% down. You can cancel it once you reach 78% loan-to-value through payments or appreciation.
Most jumbo lenders require 700+ credit scores. Some programs accept 680 with compensating factors like larger down payments or lower debt ratios.