Question 1

What is the 2026 conforming loan limit in Los Angeles County?

Accepted Answer

The conforming limit is $1,249,125. Conventional, FHA, and VA loans follow this cap. Jumbo financing applies above it.

Question 2

Do I need 20% down to buy in Rancho Palos Verdes?

Accepted Answer

No. Conventional loans accept 3% to 5% down with PMI. FHA allows 3.5% down with a 580+ credit score. VA and USDA offer zero-down options.

Question 3

What credit score do I need?

Accepted Answer

Conventional loans typically require 620+. FHA accepts 580+ for the 3.5% down program. Most lenders prefer 620+ across all programs.

Question 4

How much does PMI cost annually?

Accepted Answer

PMI ranges from 0.3% to 1.5% per year based on down payment and credit. It cancels automatically at 78% LTV. You can request removal at 80% LTV.

Question 5

Is Rancho Palos Verdes in an FHA high-cost area?

Accepted Answer

Yes. Los Angeles County is designated an FHA high-cost area for 2026. This affects FHA loan limits and qualification requirements.

Question 6

Can I use a VA loan as a surviving spouse?

Accepted Answer

Yes. Surviving spouses of service members who died in service can use VA benefits. You'll need a Certificate of Eligibility from the VA.

Question 7

What's the VA funding fee on zero-down?

Accepted Answer

The funding fee is 2.15% of the loan amount on first-time VA use at zero down. It rolls into the loan. A 10%+ disability rating exempts you.

Question 8

Does FHA mortgage insurance last forever?

Accepted Answer

No. If you put down 10% or more, FHA MIP cancels after 11 years. With less than 10% down, MIP runs for the loan's life.

Question 9

How does LAUSD's budget crisis affect home prices here?

Accepted Answer

LA County placed LAUSD under heightened fiscal oversight due to budget concerns. This uncertainty may pressure home prices and buyer confidence. School performance directly impacts buyer demand.

Question 10

What's the difference between conventional and jumbo?

Accepted Answer

Conventional loans cap at $1,249,125. Jumbo loans exceed that and typically require 20% down, 700+ credit, and 6-12 months reserves. Rates run 0.125% to 0.5% higher.

Question 11

Can I refinance FHA into conventional?

Accepted Answer

Yes. Once you reach 80% LTV, you can refinance to conventional and drop FHA MIP. This saves money if rates stay favorable.

Question 12

What income do I need for a USDA loan?

Accepted Answer

USDA caps household income at the area-specific threshold for this county, scaled by family size. Los Angeles County's median is $87,760.

Question 13

How long does closing take?

Accepted Answer

Most loans close in 30 to 45 days. FHA and VA loans may take longer due to appraisal requirements. Jumbo loans often need 45 to 60 days.

Question 14

What closing costs should I expect?

Accepted Answer

Closing costs typically run 2% to 5% of the loan amount. This includes appraisal, title, underwriting, and lender fees. Your loan estimate breaks down exact charges.

Question 15

Do I need to be a first-time buyer for FHA?

Accepted Answer

No. FHA loans are available to repeat buyers. You need 3.5% down, a 580+ credit score, and income qualification.

Rancho Palos Verdes mortgage FAQ