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in San Fernando, CA
San Fernando home prices vary widely from affordable starter homes to higher-value properties. The loan that works depends entirely on your purchase price and how much cash you bring to closing.
Conventional loans handle most purchases under $766,550. Above that limit, you need a jumbo loan with stricter requirements and different pricing.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% with mortgage insurance or 20% to avoid it entirely.
Credit requirements start at 620 for most programs, though you'll get better rates at 740 or higher. Maximum debt-to-income ratio typically caps at 50% with strong compensating factors.
Jumbo loans finance anything above $766,550 in Los Angeles County. These aren't sold to Fannie or Freddie, so lenders set their own rules and take more risk.
Expect to put down at least 10-20% depending on the lender and loan amount. Most require 700+ credit and want to see significant reserves—often 6-12 months of payments in the bank.
The main split happens at $766,550. Below that number, conventional loans offer easier approval and lower down payments. Above it, you're in jumbo territory with tighter standards.
Jumbo rates used to run higher than conventional, but that gap has narrowed. The real difference shows up in qualification—jumbos demand stronger credit, bigger down payments, and proof you can handle the payments long-term.
Buying under $766,550? Conventional makes the most sense for nearly everyone. You get more flexible guidelines and can close with less cash down.
Above that threshold, jumbo is your only option unless you make a massive down payment to stay under the limit. Make sure you have strong credit, stable income documentation, and enough reserves to satisfy underwriting.
A larger down payment keeps you in conventional territory with easier approval. Most borrowers prefer this route if they have the cash available.
Some lenders allow it with excellent credit and strong reserves. Expect stricter income verification and higher rates than a 20% down scenario.
Not always. Rates vary by borrower profile and market conditions—sometimes jumbo rates compete closely with conventional pricing.
Conventional loans typically close quicker due to standardized guidelines. Jumbo loans need more documentation review and larger reserve verification.
Yes, put down 20% or more. Below that threshold, you'll pay monthly mortgage insurance until you reach 20% equity.