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in Manhattan Beach, CA
Manhattan Beach real estate pushes most buyers into jumbo territory fast. A median-priced home here will blow past conforming loan limits.
The question isn't whether you need a jumbo — it's whether you qualify for one or should hunt below the threshold. Let's break down what separates these two options.
Conventional loans follow FHFA conforming limits. For 2024, that's $766,550 for a single-family home in Los Angeles County.
You can put down as little as 3% with a 620 credit score. Most lenders prefer 5% down and 680+ credit for competitive rates.
These loans sell to Fannie Mae or Freddie Mac, which keeps rates lower. You'll pay PMI under 20% down, but it drops off once you hit that equity mark.
Jumbo loans start where conforming loans stop — anything above $766,550. In Manhattan Beach, that covers most single-family homes.
Lenders hold these loans in portfolio, so they set their own rules. Expect stricter standards: 700+ credit, 10-20% down minimum, and 6-12 months reserves.
Rates vary by borrower profile and market conditions. Strong credit and 20%+ down can get you rates competitive with conforming loans.
Credit matters more with jumbos. A 680 score might work for conventional, but jumbo lenders want 700-720 for their best pricing.
Down payment jumps too. You can squeak by with 3-5% on conventional. Jumbo lenders typically want 10% minimum, 20% for no PMI.
Reserves separate the two most. Conventional loans might ask for 2 months of payments in the bank. Jumbos often require 6-12 months, especially on higher loan amounts.
Shop below $766,550 if you're borderline on credit or cash. A conventional loan opens doors that jumbo underwriting might slam shut.
Go jumbo when you need it and qualify cleanly. If you have 20% down, strong credit, and solid reserves, rates won't punish you.
Manhattan Beach properties cluster above conforming limits. Most buyers here end up in jumbo programs whether they planned for it or not.
$766,550 for single-family homes in Los Angeles County. Anything above that requires jumbo financing.
Not always. Borrowers with 20%+ down and 740+ credit often see jumbo rates match or beat conforming rates.
Yes, with 20% down payment. Below that, you'll pay PMI until you reach 20% equity through payments or appreciation.
Most want 6-12 months of mortgage payments in liquid assets. Higher loan amounts push toward the 12-month end.
Only if you find a property under $766,550. That limits you to condos or fixer-uppers in most cases.