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in Maywood, CA
Most Maywood buyers use conventional loans because they're buying below the conforming loan limit. Jumbo loans kick in when you exceed that threshold, which is rare here but happens with certain properties.
The choice between these loans isn't about preference—it's about your purchase price. Once you cross into jumbo territory, you're playing by different underwriting rules with stricter requirements.
Conventional loans cover most Maywood purchases. You can put down as little as 3% with decent credit. PMI drops off once you hit 20% equity.
These loans offer predictable underwriting. Lenders want to see two years of work history, steady income, and debt ratios under 50%. Rates vary by borrower profile and market conditions, but you're tapping into the most competitive part of the market.
Jumbo loans finance anything above the conforming limit. In LA County, that line sits higher than most places—currently over $1 million for a single-family home.
Expect tougher standards across the board. Most jumbo lenders want 700+ credit, 10-20% down minimum, and 6-12 months of reserves sitting in your accounts. They're pricing risk on loans Fannie and Freddie won't touch.
Loan limits create the hard line between these options. Conventional loans stay within conforming boundaries. Cross that threshold and you're shopping jumbo lenders only.
Jumbo underwriting digs deeper into everything. Your credit needs to be cleaner, your reserves larger, your income more stable. Conventional loans follow standard Fannie and Freddie guidelines with room for compensating factors.
Your purchase price makes this decision for you. Buying under the conforming limit? You're using conventional. Exceed that number and jumbo is your only path forward.
If you're close to the line, staying under the conforming limit saves you money and headaches. The difference in requirements is significant enough that stretching into jumbo territory costs more than just a bigger loan amount.
LA County is a high-cost area with conforming limits over $1 million for single-family homes. The exact number adjusts annually based on home price trends.
No. Jumbo lenders typically require 10-20% down minimum. Low down payment programs only apply to conventional conforming loans.
Usually yes, by 0.25-0.75%. Jumbo lenders price for higher risk since these loans can't be sold to Fannie or Freddie.
Conventional loans accept 620 credit. Jumbo lenders want 700 minimum, with better rates at 740+.
Expect 6-12 months of mortgage payments sitting in liquid accounts. Conventional loans often need just 2 months or none at all.