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in Pico Rivera, CA
Most Pico Rivera buyers qualify for conventional financing. Jumbo loans kick in when your purchase exceeds $806,500 in Los Angeles County.
The line between these two isn't about loan quality. It's about conforming limits set by federal housing regulators.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You need 620+ credit for most programs, though 3% down options exist for first-timers.
These loans get sold to government-sponsored entities. That creates competitive pricing since hundreds of lenders compete for the same conforming paper.
Private mortgage insurance drops off at 20% equity. You can request removal once you hit that threshold through appreciation or paydown.
Jumbo loans can't be sold to Fannie or Freddie. Lenders hold them in portfolio or sell to private investors, which changes the underwriting.
Expect stricter requirements. Most jumbo programs want 700+ credit and 10-20% down, sometimes more for properties above $1.5 million.
Rates used to punish jumbo borrowers. Now they often match or beat conventional rates because wealthy buyers represent lower default risk.
The loan limit separates these two completely. A $750,000 Pico Rivera home gets conventional financing. An $850,000 property needs jumbo.
Jumbo underwriting digs deeper into your finances. Lenders want to see 6-12 months reserves after closing, not just enough cash to close.
Documentation standards tighten on jumbo deals. Expect full income verification even if you're self-employed, plus explanations for any large deposits.
Your purchase price decides this for you. Buying under $806,500 means conventional. Going above that limit requires jumbo financing.
Some buyers split the difference with combination loans. You take a conventional first mortgage to the limit, then add a second loan for the gap. This works when you want to preserve cash but avoid jumbo requirements.
Jumbo loans make sense when you have strong credit and income but want flexibility on down payment. Conventional wins when you're borderline on credit or need maximum leverage.
$806,500 for single-family homes in Los Angeles County. Anything above that requires jumbo financing or creative structuring.
Not anymore. Jumbo rates often match or beat conventional because lenders view high-net-worth borrowers as lower risk despite larger loan amounts.
No. Jumbo programs typically require 10-20% minimum down payment, sometimes more on properties exceeding $1.5 million in value.
Conventional approvals start at 620 credit. Jumbo lenders usually want 700+ minimum, with better terms at 740 and above.
Yes, through a combo loan. Take conventional financing to $806,500, then add a second mortgage for the remaining balance.