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in Monterey Park, CA
Monterey Park sits in a price zone where many buyers face a choice: conventional or jumbo. The difference comes down to loan limits set by the FHFA, which change annually.
In Los Angeles County, conforming loan limits are higher than most of the country. But plenty of local properties still push past that ceiling, triggering jumbo territory.
Conventional loans stay within conforming limits, currently $806,500 for single-family homes in high-cost areas like LA County. These mortgages can be sold to Fannie Mae or Freddie Mac, which keeps rates competitive.
You can put down as little as 3% with conventional financing. PMI applies if you're under 20% down, but you can cancel it once you hit that equity mark. Credit score minimums typically start at 620, though stronger profiles unlock better pricing.
Jumbo loans handle purchase amounts above conforming limits. These aren't backed by Fannie or Freddie, so lenders hold more risk and set stricter standards.
Expect to put down at least 10%, though 20% is common to avoid higher rates. Credit scores typically need to be 700 or above. Lenders also scrutinize reserves—many want 6-12 months of payments in the bank after closing.
The loan limit is the first split. If your purchase needs $807,000, you're in jumbo land. If it's $806,000, you qualify for conventional. One thousand dollars can shift your entire rate structure and approval odds.
Rates vary by borrower profile and market conditions, but jumbos often price close to conventional now—sometimes even lower. The catch is approval standards. Jumbo underwriting digs deeper into income stability, reserves, and credit history. You'll need stronger financials across the board.
If your loan amount stays under $806,500, conventional wins on flexibility. Lower down payments, easier qualification, and removable PMI make it the default for most Monterey Park buyers.
Go jumbo if you're financing above that cap and have strong credit plus solid reserves. The rates can surprise you—sometimes better than conventional. Just know lenders will verify every income source and expect proof you can weather a few rough months without missing payments.
$806,500 for single-family homes. Anything above that requires a jumbo loan.
Yes, by putting down 20% or more. PMI also cancels once you reach 20% equity through payments or appreciation.
Not always. Rates vary by borrower profile and market conditions, and jumbos sometimes price lower for well-qualified buyers.
Not always, but it helps. Many lenders allow 10% down, though 20% typically unlocks better rates and easier approval.
Conventional starts at 620. Jumbo lenders typically want 700 or higher for competitive pricing.
Larger loans mean bigger risk. Lenders want proof you can cover 6-12 months of payments if income drops unexpectedly.