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in San Marino, CA
San Marino's luxury real estate market makes the conventional versus jumbo decision crucial. Most properties here exceed conforming loan limits, pushing buyers into jumbo territory whether they expect it or not.
The 2024 conforming limit sits at $766,550 in Los Angeles County. Anything above that requires jumbo financing, and San Marino homes routinely clear seven figures.
Conventional loans work for properties under $766,550. They follow Fannie Mae and Freddie Mac guidelines, which means standardized underwriting and competitive rates.
You can put down as little as 3% on a conventional loan. Credit score minimums start at 620, though you'll want 700+ for the best pricing.
These loans close faster because lenders know the rules cold. Every underwriter in the country follows the same playbook, so there's less guesswork and fewer surprises.
Jumbo loans finance properties above $766,550. Each lender sets their own rules since there's no government backing or secondary market standardization.
Expect to put down 10-20% minimum. Most jumbo lenders want 700+ credit, though 720-740 gets you into preferential pricing tiers.
Reserve requirements run higher on jumbos. Lenders typically want 6-12 months of payments in the bank after closing, depending on loan size and your debt-to-income ratio.
The down payment gap matters most. Conventional loans let you go as low as 3%, while jumbo lenders want 10-20% depending on property value and credit profile.
Jumbo rates used to run higher than conventional. That spread has compressed significantly, and sometimes jumbos price better for borrowers with strong profiles.
Underwriting gets stricter on jumbos. Lenders scrutinize income documentation more carefully, question large deposits, and drill into asset sources that conventional underwriters might skip over.
Your loan amount makes the initial decision. Under $766,550, you can choose conventional. Above that, you're in jumbo territory by default.
If you're borderline, sometimes putting more down to stay conventional makes sense. Run the numbers both ways before deciding that extra cash is worth avoiding jumbo underwriting.
San Marino buyers with strong financial profiles often find jumbo loans straightforward. The scrutiny increases, but the rates stay competitive and you're not fighting over appraisal value like you would at conforming limits.
$766,550 for single-family homes in 2024. Anything above requires jumbo financing regardless of down payment size.
No. The jumbo designation depends on loan amount, not purchase price. A $900,000 home needs jumbo financing even with 50% down.
Not anymore. Rate spread has compressed significantly. Borrowers with excellent credit and low debt ratios often see competitive jumbo pricing.
Most lenders want 6-12 months of payments after closing. Higher loan amounts and debt ratios push requirements toward the upper end.
Minimum 700 with most lenders. You'll see better pricing at 720-740 and above, especially on loans over $1.5 million.