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in Paramount, CA
Most Paramount buyers stay under the $806,500 conforming limit and use conventional financing. Jumbo loans kick in above that threshold, requiring stricter approval standards but opening access to higher-priced properties.
The choice between these two loan types comes down to purchase price and qualification strength. Conventional loans offer easier approval and lower rates, while jumbo loans provide the firepower for premium Los Angeles County real estate.
Conventional loans follow Fannie Mae and Freddie Mac guidelines, capping at $806,500 in Los Angeles County. You can put down as little as 3% with strong credit, though 20% down eliminates mortgage insurance.
Most Paramount buyers qualify with 620-640 credit and standard documentation. Rates run lower than jumbo because these loans get sold to government-sponsored entities, spreading lender risk across the secondary market.
Debt-to-income limits stretch to 50% on strong files. You'll need two years of stable income and standard tax returns for approval.
Jumbo loans cover amounts above $806,500, funding higher-end properties without loan limit restrictions. Lenders hold these loans in portfolio instead of selling them, so underwriting gets significantly tighter.
Expect minimum 680-700 credit and 10-20% down depending on loan size. Most jumbo lenders want 6-12 months of reserves sitting in the bank after closing to cover future mortgage payments.
Income verification runs stricter than conventional. Self-employed borrowers face extra scrutiny on tax returns and business financials.
The rate gap matters more than most buyers realize. Jumbo loans typically run 0.25-0.75% higher than conventional, adding $200-$600 monthly on a $1 million loan.
Reserve requirements separate qualified buyers from funded deals. Conventional loans rarely ask for reserves, while jumbo lenders want proof you can weather six months of payments without income.
Credit score thresholds jump significantly. A 640 score works for many conventional loans but gets rejected outright on jumbo financing.
If you're buying under $806,500 in Paramount, conventional wins on rate, flexibility, and approval odds. No reason to use a jumbo loan when you qualify for conforming financing.
Above the conforming limit, you don't have a choice—jumbo is your only option unless you increase down payment to bring the loan amount under $806,500. Make sure you have the credit, reserves, and documentation before house hunting in that price range.
Some borrowers split the difference by putting more down to stay conventional. On an $850,000 purchase, adding $43,500 to your down payment keeps you at the conforming limit and saves thousands in interest.
Jumbo loans start at $806,501 in Los Angeles County. Anything at or below $806,500 qualifies as a conventional conforming loan.
Some lenders allow 10% down on jumbo loans under $1.5 million with strong credit and reserves. Expect stricter approval requirements than 20% down scenarios.
Yes, jumbo rates typically run 0.25-0.75% higher because lenders hold the risk instead of selling to Fannie or Freddie. Strong credit can narrow the gap.
Most jumbo lenders require 6-12 months of mortgage payment reserves after closing. Higher loan amounts often push toward the 12-month requirement.
Absolutely. If your loan amount lands just above $806,500, putting more down keeps you in conventional territory and saves on rate.