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in Long Beach, CA
Long Beach straddles the line between affordable beach neighborhoods and luxury waterfront estates. That split means some buyers need conventional loans while others hit jumbo territory fast.
The line between these loans isn't about quality—it's about loan size. Cross the conforming limit and your rate, down payment, and approval standards all shift.
Conventional loans stay within conforming limits set by the FHFA. In Los Angeles County, that's currently $766,550 for a single-family home.
These loans offer the most flexibility. You can put down as little as 3% with strong credit. Rates are competitive because lenders can sell these to Fannie Mae or Freddie Mac.
Most Long Beach condos and single-family homes fall in this range. You'll find the widest variety of loan programs and the smoothest approval process here.
Jumbo loans exceed conforming limits. In Long Beach, that means anything above $766,550—common for waterfront properties in Belmont Shore or Naples.
Lenders hold these loans on their books or sell them to private investors. That means stricter standards. Expect to show 20% down minimum, credit scores above 700, and serious cash reserves.
The upside is you can finance luxury properties that conventional loans won't touch. The downside is higher scrutiny on every part of your financial profile.
The conforming limit is the hard line. Below $766,550 you're conventional. Above it you're jumbo. That shift changes everything about approval.
Conventional loans allow 3-5% down with PMI. Jumbo loans want 20% minimum—sometimes 30% on high-end properties. That's $150,000 versus $500,000 down on a $2.5 million Naples waterfront home.
Credit standards tighten on jumbos. A 680 score might fly for conventional with conditions. Jumbo lenders want 700 minimum, often 720+ for best pricing. They'll also want 12-24 months of reserves in the bank.
Rate differences depend on your profile. Strong jumbo borrowers sometimes get better rates than marginal conventional borrowers. Shop both if you're near the limit.
Your purchase price decides this for you. If the property is under $766,550, you're getting a conventional loan. If it's above that, you need jumbo.
The decision point comes when you're shopping. In Long Beach, conventional limits cover most single-family homes east of Redondo Avenue and nearly all condos. Waterfront, new construction in Belmont Heights, and Naples estates push you into jumbo range.
If you're close to the limit, consider whether stretching into jumbo territory makes sense. That extra $100,000 in purchase price might require $50,000 more down and stricter approval. Sometimes the smaller conventional loan is the smarter play.
$766,550 for single-family homes in Los Angeles County. Anything above that requires a jumbo loan.
Some lenders allow 10-15% down on jumbo loans, but you'll pay higher rates. Most competitive pricing starts at 20% down.
Not always. Strong jumbo borrowers with 25%+ down and 760+ credit sometimes get better rates than conventional borrowers. It depends on your profile.
Stay under $766,550 if you can. Crossing into jumbo territory means stricter approval and larger down payment for marginal price increase.
Typically 6-12 months of mortgage payments in liquid assets. High-balance jumbos may require 24 months of reserves depending on the lender.