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in Rosemead, CA
Rosemead sits in a unique spot where some properties stay under conforming limits while others push into jumbo territory. The difference between these two loan types comes down to size, not quality.
Conventional loans follow federal limits set by the FHFA. Jumbo loans start where those limits end. Both work well for qualified buyers—you just need to know which bracket your purchase falls into.
Conventional loans stay within conforming limits, currently $806,500 in Los Angeles County for single-family homes. These mortgages follow Fannie Mae and Freddie Mac guidelines, which means standardized underwriting.
You can put down as little as 3% with strong credit. Rates tend to be competitive because these loans can be sold on the secondary market. Most Rosemead properties under $800k fit this category perfectly.
Jumbo loans finance anything above $806,500 in LA County. These are portfolio loans that lenders hold themselves, which means stricter requirements across the board.
Expect to put down 10-20% minimum. Lenders want to see substantial reserves—often 12 months of payments in the bank after closing. The tradeoff is access to financing that conventional loans simply can't provide for higher-priced homes.
The loan limit is the obvious divider—under $806,500 goes conventional, above goes jumbo. But underwriting standards shift dramatically. Jumbo lenders scrutinize debt-to-income ratios more carefully and require larger cash reserves.
Rates vary by borrower profile and market conditions. Jumbo rates sometimes beat conventional rates for well-qualified borrowers because wealthy buyers represent lower default risk. Down payment flexibility matters too—conventional allows 3% down while jumbo typically starts at 10%.
Your purchase price makes this decision for you in most cases. Shopping in Rosemead under $800k? Conventional wins every time—easier approval, lower down payment, more flexibility.
Looking above $806,500? Jumbo is your only option unless you make a massive down payment to bring the loan amount under the limit. Get your financial house in order first: boost reserves, document all income sources, and expect lenders to verify everything twice.
$806,500 for single-family homes. Anything above that requires a jumbo loan.
Yes, but expect higher rates and stricter requirements. Most lenders prefer 20% down for best pricing.
Not always. Well-qualified borrowers sometimes get better jumbo rates than conventional rates due to lower default risk.
Conventional typically requires 620 minimum. Jumbo lenders usually want 700 or higher for competitive rates.
Most want 6-12 months of mortgage payments in the bank after closing. Some require more for higher loan amounts.