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in Santa Clarita, CA
Santa Clarita's housing market spans starter condos to estate homes in Valencia and Stevenson Ranch. That range matters because loan type depends entirely on purchase price.
Cross the conforming loan limit and you're in jumbo territory. The difference isn't just loan size—it's underwriting standards, rates, and what lenders require from you.
Conventional loans follow FHFA conforming limits—$806,500 in Los Angeles County for single-family homes in 2025. These loans get sold to Fannie Mae or Freddie Mac, which keeps rates competitive.
You can put down as little as 3% with strong credit. PMI applies under 20% down but drops off once you hit that equity threshold. Credit scores as low as 620 qualify, though 740+ gets the best pricing.
Jumbo loans finance properties above conforming limits—anything over $806,500 in Santa Clarita. Banks hold these loans in portfolio instead of selling them, so they set their own rules.
Expect 10-20% down minimums and credit score requirements around 700-720. Reserves matter more here—lenders want to see 6-12 months of payments in the bank after closing. Debt ratios get scrutinized harder too.
The loan limit is the obvious split. But the real difference is risk tolerance. Conventional loans follow standardized guidelines. Jumbo lenders price for the fact they're stuck with the loan.
Rate spreads vary by market conditions. Sometimes jumbos price lower for ultra-qualified borrowers. Other times you'll pay 0.25-0.75% more. Documentation is heavier on jumbos—expect full asset verification and income deep dives.
If your Santa Clarita purchase is under $806,500, conventional wins. Lower down payments, easier qualification, and better PMI options. No reason to overcomplicate it.
Above that limit, jumbo is your only conforming option. Make sure you have solid credit, meaningful reserves, and clean income documentation. We shop jumbo across 20+ portfolio lenders to find competitive pricing.
$806,500 for single-family homes in 2025. Anything above requires a jumbo loan.
Not always. Borrowers with 760+ credit and 25% down sometimes get jumbo rates below conventional pricing.
No, but PMI drops off automatically at 78% loan-to-value. On jumbos you'd need 20% down or accept portfolio pricing.
Typically 6-12 months of mortgage payments in liquid assets after closing. Some portfolio lenders require more for higher loan amounts.
Conventional loans have lower credit minimums and standardized guidelines. Jumbo approval requires stronger overall financial positioning.