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in Lynwood, CA
Most Lynwood buyers use conventional loans because they work for homes under the LA County conforming limit. Jumbo loans step in when you're buying above that ceiling—common in higher-end pockets or when upgrading from smaller properties.
The choice hinges on your purchase price and down payment. Conventional loans offer easier qualification and lower rates for conforming amounts, while jumbos unlock access to pricier inventory with stricter requirements.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3%, though you'll pay PMI until you hit 20% equity. Credit score minimums start at 620, but 740+ gets you the best pricing.
These loans cap at the LA County conforming limit—currently $1,149,825 for single-family homes. Rates tend to run lower than jumbos because lenders can sell the loan to Fannie or Freddie, reducing their risk.
Jumbo loans finance amounts above the conforming limit. Lenders hold these loans in portfolio, so they price for more risk. Expect rates 0.25% to 0.75% higher than conventional, depending on loan size and your profile.
Most jumbo lenders want 10-20% down, though some go as low as 5% for strong borrowers. Credit score minimums sit around 680, but 720+ is the sweet spot. You'll also need bigger reserves—six to twelve months of mortgage payments in the bank.
Rate difference is the first split. Conventional loans carry lower rates because they conform to Fannie Mae standards. Jumbos price higher due to lender portfolio risk—sometimes half a point more, which adds up over thirty years.
Underwriting gets tighter with jumbos. Lenders scrutinize income docs harder, want more reserves, and cap debt-to-income ratios lower than conventional loans. You might qualify for $800K conventional but struggle at $1.2M jumbo even with the same income.
If your Lynwood purchase stays under $1,149,825, conventional wins on rate and flexibility. Even if you have jumbo-level income, there's no advantage paying a higher rate unless you need the bigger loan amount.
Go jumbo when you're buying above the conforming limit or planning to upgrade soon. Make sure you have the down payment, reserves, and credit profile to qualify—otherwise you'll waste time on approvals that don't close.
$1,149,825 for single-family homes. Anything above that requires a jumbo loan.
No. You'll pay PMI until you reach 20% equity through payments or appreciation.
Yes. Most jumbo lenders want 680 minimum, but you'll get better pricing at 720 or higher.
Plan for six to twelve months of mortgage payments in liquid assets after closing.
Usually. Jumbos price 0.25% to 0.75% higher because lenders keep them in portfolio.