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in San Dimas, CA
San Dimas sits in a price range where many buyers hit the conforming loan limit. Properties above $806,500 require jumbo financing with stricter requirements.
The choice between conventional and jumbo isn't just about loan size. It affects your rate, down payment, and how much scrutiny your finances will face.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with solid credit, though you'll pay PMI below 20%.
These loans cap at $806,500 in Los Angeles County. That covers most single-family homes in San Dimas but not the higher-end properties near the foothills.
Approval focuses on standard metrics: credit score, DTI ratio, and employment verification. Most conventional loans close in 25-35 days with clean underwriting.
Jumbo loans fund purchases above the conforming limit. They're portfolio loans, meaning lenders hold the risk instead of selling to Fannie or Freddie.
Expect stricter requirements across the board. Most lenders want 10-20% down minimum, 700+ credit scores, and lower debt-to-income ratios than conventional loans allow.
Cash reserves matter more here. Lenders typically require 6-12 months of mortgage payments in savings after closing, especially on properties above $1 million.
The down payment gap is real. Conventional allows 3% down while jumbo typically starts at 10%. On an $850,000 home, that's $25,500 versus $85,000.
Jumbo rates used to run higher than conventional, but competition has tightened that spread. The bigger cost difference now is the cash you need at closing.
Underwriting timelines stretch longer with jumbo loans. Extra documentation reviews and appraisal scrutiny add 1-2 weeks to the process versus conventional.
If your San Dimas purchase stays under $806,500, conventional wins on flexibility. Lower down payment, easier approval, and no reserve requirements make it accessible.
Above that limit, you're in jumbo territory whether you like it or not. Focus on building a strong application: high credit score, low DTI, and ample reserves.
Some buyers stretch to keep purchases under the conforming limit to avoid jumbo requirements. That works if you find the right property, but don't sacrifice location or condition just to hit a loan category.
$806,500 for single-family homes in Los Angeles County. Anything above requires jumbo financing.
Yes, some lenders allow 10-15% down on jumbo loans. You'll face stricter credit and reserve requirements at lower down payments.
Not always. Competition among jumbo lenders has narrowed the rate gap, sometimes even matching conventional rates for strong borrowers.
Most lenders require 6-12 months of mortgage payments in liquid assets after closing. Higher loan amounts demand more reserves.
Jumbo loans don't have PMI like conventional loans. However, you'll still need substantial down payment and reserves to qualify.