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Montebello sits in the sweet spot for conventional financing. Most properties fall under conforming limits, which means better rates.
The city's mix of single-family homes and condos works well with conventional underwriting. Lenders like stable Los Angeles County values.
Conventional loans dominate here because most buyers can meet credit and down payment standards. FHA makes sense only if you're borderline on credit or cash.
Conventional Loans in Montebello
You need 620 minimum credit, but 740+ unlocks the best rates. Income matters less than debt ratios — keep total debt under 43% of gross income.
Down payment starts at 3% for first-time buyers, 5% for repeat buyers. Expect PMI below 20% down, but it drops off automatically at 78% loan-to-value.
Lenders verify two years of stable income. W-2 earners sail through. Self-employed borrowers need two years of tax returns showing consistent earnings.
Local decision guide
Use this guide to connect conventional loans eligibility, lender expectations, and local market factors before comparing payment options in Montebello.
Montebello sits in the sweet spot for conventional financing. Most properties fall under conforming limits, which means better rates.
The city's mix of single-family homes and condos works well with conventional underwriting. Lenders like stable Los Angeles County values.
Conventional loans dominate here because most buyers can meet credit and down payment standards. FHA makes sense only if you're borderline on credit or cash.
Over 200 wholesale lenders offer conventional loans, but pricing varies wildly. Credit unions sometimes beat wholesale by 0.125%, but their underwriting takes longer.
Portfolio lenders give you flexibility on debt ratios if compensating factors exist. Think high assets or big down payment offsetting higher debt load.
Brokers access tiered pricing that direct lenders can't match. A 760 score might price 0.25% better than 720, which saves $50 monthly on a $500K loan.
Most Montebello buyers overpay PMI because they don't know about lender-paid options. You can take a slightly higher rate and eliminate the monthly PMI charge.
Conventional appraisals in Los Angeles County move fast, but some neighborhoods appraise conservatively. Budget for a potential gap between contract and appraised value.
Buying a condo? Get the HOA documents to your lender early. Non-warrantable projects kill deals at the finish line when buyers assume all condos qualify.
FHA requires just 580 credit but charges lifetime PMI on loans over 90% LTV. Conventional PMI disappears, saving you $200+ monthly once you hit 20% equity.
Jumbo loans kick in above $832,750 in Los Angeles County. If you're close to that line, conventional conforming pricing beats jumbo by 0.25-0.50% typically.
VA loans beat conventional if you're a veteran — zero down, no PMI. But conventional wins for everyone else who has decent credit and some savings.
Montebello's proximity to downtown LA and Commerce keeps property values steady. Lenders view this as a low-risk area, which translates to standard pricing tiers.
The city's older housing stock sometimes triggers appraisal repair requirements. Peeling paint or old roofs flag underwriting, even if the house is structurally sound.
Tax assessments in Los Angeles County stay low until sale due to Prop 13. New buyers should budget for the jump to market-rate property taxes after closing.
Minimum is 620, but you'll pay premium pricing. Get to 740+ for the best rates and lowest fees.
First-time buyers can put down 3%. Repeat buyers need 5% minimum for a primary residence.
Yes, through lender-paid PMI or piggyback loans. Both have tradeoffs worth discussing with your broker.
Most do, but the HOA must be warrantable. Get those documents reviewed early to avoid surprises.
Typical is 21-30 days with all documents ready. Appraisals in LA County usually take 7-10 days.
Conventional if your credit is 680+. FHA only makes sense for borderline credit or minimal down payment.