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in San Gabriel, CA
San Gabriel sits in the heart of LA County, where home prices push many buyers past conventional loan limits. Once you cross that threshold, you're shopping for a jumbo loan whether you planned to or not.
The line between these two options is drawn by the Federal Housing Finance Agency at $806,500 for 2025 in LA County. Below that number, you're conventional. Above it, you're jumbo with different rules and pricing.
Conventional loans top out at $806,500 in Los Angeles County. They follow Fannie Mae and Freddie Mac guidelines, which means standardized underwriting and competitive rates.
You can put down as little as 3% if you're a first-time buyer, though most pay 5-20%. PMI applies below 20% down but drops off once you hit that equity threshold.
Credit score matters more than documentation creativity here. Most lenders want 620 minimum, but you'll see better pricing at 740+.
Jumbo loans finance anything above $806,500 in LA County. Banks hold these on their own books instead of selling them to Fannie or Freddie, so they set their own rules.
Expect stricter requirements across the board. Most lenders want 10-20% down minimum, 700+ credit scores, and deeper cash reserves after closing.
Rates vary by borrower profile and market conditions. You'll sometimes see jumbo rates beat conventional pricing when banks compete for high-quality borrowers.
The loan limit is the obvious divider, but underwriting rigor separates them more than price does. Conventional loans follow fixed Fannie/Freddie rules. Jumbo lenders evaluate the full financial picture and adjust terms based on what they see.
Down payment minimums shift hard at the jumbo threshold. That 3% conventional option disappears. You're looking at 10% minimum for most jumbo programs, 15-20% for the best rates.
Reserve requirements tell the real story. Conventional loans rarely ask for more than 2 months reserves. Jumbo lenders want 6-12 months of housing payments sitting in the bank after you close.
If your purchase price sits below $806,500, conventional wins on flexibility and lower barriers to entry. You'll access the most competitive rates and the widest range of down payment options.
Above that limit, you're shopping jumbo by necessity. Focus on finding a lender who actually wants jumbo business rather than one who tolerates it. Rate differences between lenders widen dramatically in the jumbo space.
Strong financial profiles sometimes get better jumbo rates than conventional ones. If you're putting 25%+ down with 760+ credit and solid reserves, jumbo pricing can surprise you.
$806,500 for Los Angeles County. Anything above that requires jumbo financing regardless of property type.
Yes, though 15-20% down gets you better rates. Expect higher reserves and credit requirements at 10% down.
Not always. Strong borrowers with large down payments sometimes get better jumbo pricing when banks compete for their business.
Most want 6-12 months of full housing payments in the bank after closing. Reserves include all mortgage costs, not just principal and interest.
Yes, by putting 20% down or using lender-paid PMI. The latter trades higher rates for no monthly mortgage insurance.