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Manhattan Beach commands some of the highest price points in Los Angeles County. Most purchases here exceed conforming limits, making conventional loans work mainly for refinances or lower-priced condos.
The beach proximity and walkability premiums push many buyers toward jumbo products. Conventional loans still dominate the refi market when borrowers want to drop PMI or tap equity.
Investment properties near the strand often use conventional financing with 20-25% down. Second homes qualify too, but lenders price the risk higher than primary residences.
Conventional Loans in Manhattan Beach
You need 620 minimum credit for conventional approval, but Manhattan Beach deals typically require 680+ to get competitive pricing. Debt ratios max at 50% with strong compensating factors.
Down payment starts at 3% for primary homes, though most Manhattan Beach buyers put 20% down to avoid PMI. Investment properties require 20% minimum, second homes need 10%.
Lenders verify two years of income and employment. Self-employed borrowers provide tax returns. Reserves matter more here—expect lenders to want 6-12 months PITI saved.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Manhattan Beach.
Manhattan Beach commands some of the highest price points in Los Angeles County. Most purchases here exceed conforming limits, making conventional loans work mainly for refinances or lower-priced condos.
The beach proximity and walkability premiums push many buyers toward jumbo products. Conventional loans still dominate the refi market when borrowers want to drop PMI or tap equity.
Investment properties near the strand often use conventional financing with 20-25% down. Second homes qualify too, but lenders price the risk higher than primary residences.
We shop your loan across 200+ wholesale lenders who compete on rate and overlays. Some lenders price Manhattan Beach higher due to coastal exposure concerns, while others treat it like any LA County location.
Rate-and-term refinances price better than cash-out refis. Expect 0.125-0.25% higher rates if you pull equity. Investment property rates add another 0.50-0.75% over owner-occupied pricing.
Condos require warrantable status and acceptable HOA financials. Many Manhattan Beach buildings have no Fannie/Freddie issues, but some older complexes need manual review.
Manhattan Beach buyers often assume they need jumbo loans, but conventional works perfectly for condos under $832,750. The rate difference between conforming conventional and jumbo can save $200-400 monthly.
Borrowers with 15-19% down should compare conventional with PMI against waiting to hit 20%. Current PMI rates run 0.30-0.80% annually depending on credit and LTV, often cheaper than delaying the purchase.
We see investors use conventional financing on rental properties near the beach. The 20% down requirement beats portfolio loans requiring 25-30%, and you get better rates.
FHA loans allow 3.5% down but require upfront and monthly mortgage insurance that never drops off. Conventional PMI cancels at 78% LTV, saving thousands long-term.
Jumbo loans handle amounts above $832,750 but require 10-20% down and stricter debt ratios. If you're under conforming limits, conventional rates beat jumbo by 0.25-0.75%.
ARMs offer lower initial rates but reset after 5-7 years. Fixed conventional loans lock your payment for 30 years—better stability in an expensive market where you plan to stay.
Manhattan Beach appraisals can surprise buyers. Beachfront premiums don't always match list prices, causing value gaps. Conventional loans require the appraisal to support the purchase price or you bring more cash.
HOA fees in coastal buildings run $400-1,200 monthly and count against your debt ratio. High HOAs can push otherwise qualified borrowers over the 50% DTI threshold.
Earthquake insurance isn't required but recommended. Lenders don't mandate it for conventional loans, but most Manhattan Beach buyers carry it given proximity to the Newport-Inglewood fault zone.
Minimum is 620, but you need 680+ for competitive rates. Most Manhattan Beach borrowers have 720+ scores and get best pricing.
3% minimum for primary homes, but 20% avoids PMI. Investment properties require 20%, second homes need 10% down.
Yes, if the building is warrantable and HOA financials check out. Most Manhattan Beach complexes qualify without issues.
Absolutely. You need 20% down and accept rates 0.50-0.75% higher than primary residence pricing.
Automatically at 78% LTV through regular payments. You can request cancellation at 80% LTV with an appraisal.
Conforming limit is $1,249,125 for 2026. Above that, you need a jumbo loan with different requirements.