Loading
in Palmdale, CA
Palmdale sits in a sweet spot where most homes fall under conforming loan limits, but some neighborhoods push into jumbo territory. The difference between these loan types affects your rate, down payment, and approval odds.
Conventional loans cap at $806,500 in Los Angeles County for 2025. Above that number, you need a jumbo loan with stricter requirements and often higher rates.
Conventional loans give you the most options in Palmdale. You can put down as little as 3% with decent credit, though 20% avoids PMI and gets better rates.
These loans follow Fannie Mae and Freddie Mac guidelines, which means predictable underwriting. Lenders compete hard for this business, so rates stay competitive across our 200+ lending partners.
Jumbo loans kick in above $806,500 in Los Angeles County. Lenders take more risk without Fannie Mae backing, so they demand stronger borrower profiles and bigger down payments.
Expect to put down at least 10-20% depending on the lender. Most want 700+ credit scores and 6-12 months of reserves sitting in the bank after closing.
The biggest split is loan amount. Under $806,500 you get conventional flexibility. Above that threshold, underwriting tightens and rates often tick up 0.25-0.75%.
Jumbo loans scrutinize income harder. A $900k purchase needs bulletproof documentation and lower debt ratios. Conventional loans forgive more on the margins with 43-50% DTI limits versus 38-43% for jumbos.
If your Palmdale home costs under $806,500, conventional wins on flexibility and cost. You get lower rates, smaller down payments, and easier approval standards across the board.
Jumbo loans make sense only when you need them for properties above conforming limits. Bring strong credit, significant reserves, and stable income. If you're borderline on qualifying, consider homes that keep you in conventional territory.
$806,500 for single-family homes in Los Angeles County. Loans above this amount require jumbo financing with stricter requirements.
Most jumbo loans don't require PMI since you're putting down 10-20% minimum. Lenders price the risk directly into the interest rate instead.
Usually yes, by 0.25-0.75% depending on your profile. Lenders price in extra risk without government backing, though strong borrowers sometimes see comparable rates.
Conventional loans start at 620 credit. Jumbo lenders want 700+ for competitive rates, with some programs accepting 680 for strong borrowers.
Most lenders require 6-12 months of mortgage payments in liquid reserves after closing. Conventional loans rarely ask for more than 2-6 months.