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in Palmdale, CA
Palmdale buyers above the 2026 conforming limit of $1,249,125 face a real choice: stretch into jumbo territory or stay conventional.
Conventional loans max out at $1,249,125 in Los Angeles County this year. Anything above that requires jumbo financing. Both paths work in Palmdale's market, but they move differently when the purchase price climbs.
Conventional loans are the standard path for most Palmdale buyers. They cap at $1,249,125 in 2026. If your purchase price stays at or below that, conventional keeps you in the mainstream lending market with competitive rates and predictable terms.
Down payment flexibility is conventional's strength. You can put down 3% to 20% depending on credit and income. PMI applies below 20% down but cancels once you hit 80% LTV through either payment or home appreciation.
Jumbo loans exist for purchases above $1,249,125. They're not exotic—they're just loans that exceed the conforming ceiling. Lenders price them individually, so rates and terms vary more than conventional.
Jumbo typically requires 10% to 20% down minimum, sometimes higher depending on the lender. There's no mortgage insurance on jumbo loans. Instead, the rate itself reflects the lender's risk.
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 Palmdale.
Palmdale buyers above the 2026 conforming limit of $1,249,125 face a real choice: stretch into jumbo territory or stay conventional.
Conventional loans max out at $1,249,125 in Los Angeles County this year. Anything above that requires jumbo financing. Both paths work in Palmdale's market, but they move differently when the purchase price climbs.
Conventional loans are the standard path for most Palmdale buyers. They cap at $1,249,125 in 2026. If your purchase price stays at or below that, conventional keeps you in the mainstream lending market with competitive rates and predictable terms.
The clearest split: conventional stops at $1,249,125; jumbo starts there. If you're buying a $1,300,000 home in Palmdale, conventional won't work. If you're at $1,200,000, jumbo is overkill. That's the hard boundary.
Down payment expectations shift. Conventional lets you start at 3% down with PMI. Jumbo wants 10% to 20% minimum. The gap between those two is real money on a high-priced purchase.
Rate pricing differs. Conventional rates are published and competitive across lenders. Jumbo rates are quoted per application. A 0.25% to 0.5% spread between conventional and jumbo is typical, though it narrows when rates rise overall.
Conventional is right if your purchase price stays at or below $1,249,125. You have flexibility on down payment. Your credit score is 680 or higher. You want the fastest close and widest lender choice.
Jumbo makes sense when you're buying above $1,249,125 and have substantial savings for a larger down payment. You have strong credit (740+) and stable income. You're willing to wait a few extra weeks for manual underwriting.
Jumbo rates typically run 0.25% to 0.5% higher than conventional. The exact gap depends on your credit, down payment, and the lender. Rates are quoted individually for jumbo, so shop multiple lenders to find the best price.
Most jumbo lenders require 10% down minimum. Some will go to 5% if you have excellent credit and income, but expect fewer options and a higher rate. Conventional at 5% down is more standard and cheaper overall.
No. Jumbo loans skip mortgage insurance entirely. The higher rate and larger down payment protect the lender instead. That's one real advantage of jumbo—your payment doesn't include an insurance premium.
Conventional typically closes in 30 to 40 days. Jumbo takes 40 to 50 days because each file gets manual underwriting. If speed matters, conventional is the safer bet.
Conventional: 620 minimum, though 680+ gets better rates. Jumbo: 740+ is standard. Jumbo lenders are stricter because the loan amount is larger and their risk is higher.