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in Montebello, CA
Montebello sits in a sweet spot where you'll find both single-family homes under conforming limits and properties that push into jumbo territory. The loan type you need depends entirely on your purchase price.
Most buyers here start with conventional financing and solid rates. But if you're looking at higher-end properties or multi-unit buildings, you'll cross into jumbo loan territory fast.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. In Los Angeles County, that means financing up to $832,750 for single-family homes in 2025.
You can put down as little as 3% with strong credit. PMI drops off automatically at 78% loan-to-value. Rates stay competitive because these loans get sold to the secondary market.
Credit requirements start at 620, but you'll want 680+ for decent pricing. DTI ratios max out around 50% with compensating factors. Income documentation follows standard W-2 and tax return protocols.
Jumbo loans finance anything above $832,750 in Los Angeles County. These don't get sold to Fannie or Freddie, so lenders set their own rules and hold more risk.
Expect stricter underwriting across the board. Most lenders want 10-20% down minimum. Credit scores typically need to hit 700+, and some require 720 for best pricing.
Cash reserves matter more with jumbos. Lenders often want 6-12 months of mortgage payments in the bank after closing. DTI limits tighten to 43-45% in most cases.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Montebello.
Montebello sits in a sweet spot where you'll find both single-family homes under conforming limits and properties that push into jumbo territory. The loan type you need depends entirely on your purchase price.
Most buyers here start with conventional financing and solid rates. But if you're looking at higher-end properties or multi-unit buildings, you'll cross into jumbo loan territory fast.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. In Los Angeles County, that means financing up to $832,750 for single-family homes in 2025.
The biggest split is loan limits. Under $832,750, you use conventional. Above that number, you need jumbo financing. This makes the choice simple based on purchase price alone.
Down payments vary significantly. Conventional allows 3% down with PMI. Jumbo lenders want at least 10%, often 20% to avoid higher rates and overlays.
Credit standards tighten with jumbos. A 680 score works fine for conventional. Jumbo lenders prefer 720+ and scrutinize credit history more carefully. Rates vary by borrower profile and market conditions.
Reserve requirements separate the two clearly. Conventional might need 2 months reserves. Jumbo lenders routinely ask for 6-12 months of payments sitting in accounts post-closing.
Your purchase price makes this decision for you most of the time. Buying under $832,750 in Montebello? You're using conventional financing. Looking at properties above that threshold? You need jumbo.
If you're right at the limit, consider your down payment strategy. Putting 20% down on an $850,000 property drops your loan to $680,000, keeping you in conventional territory with better terms.
Jumbo makes sense when you want a higher-value property and have the financial profile to support it. Strong income, excellent credit, and solid reserves open up competitive jumbo rates. Otherwise, staying under conforming limits saves headaches.
$832,750 for single-family homes in Los Angeles County. Anything above that requires jumbo financing.
Yes, but expect higher rates and stricter credit requirements. Most lenders prefer 20% down for best jumbo pricing.
Not always. Strong borrowers with 20%+ down often get competitive jumbo rates. Rates vary by borrower profile and market conditions.
Most lenders want 6-12 months of mortgage payments in liquid assets after closing. Conventional typically requires 2-6 months.
Absolutely. If you're buying an $850,000 home, putting down 20% drops your loan to $680,000, keeping you conventional.