Question 1

What's the conforming loan limit in Sierra Madre?

Accepted Answer

The 2024 limit is $832,750 for Los Angeles County. Borrow one dollar more and you're in jumbo territory with higher rates and stricter requirements.

Question 2

Can I buy a Sierra Madre fixer-upper with a conforming loan?

Accepted Answer

Standard conforming loans require the home to be habitable at closing. Major repairs need a renovation loan like Fannie Mae HomeStyle, which adds complexity and cost.

Question 3

How much does PMI cost on a conforming loan?

Accepted Answer

Expect 0.3% to 1.5% of your loan amount annually, depending on credit and down payment. On a $700,000 loan with 10% down, that's roughly $200-$500 monthly.

Question 4

Do conforming loans work for self-employed borrowers in Sierra Madre?

Accepted Answer

Yes, but you'll need two years of tax returns showing stable income. Lenders average your income across both years, so recent dips hurt your qualifying power.

Question 5

Can I use a conforming loan for a multi-family property?

Accepted Answer

Conforming loans cover 2-4 unit properties with different down payment rules. You'll need 15% down for a duplex versus 5% for a single-family home.

Question 6

How long does conforming loan approval take in Sierra Madre?

Accepted Answer

Expect 30-45 days from application to closing. Older homes requiring additional inspections or appraisal reviews can push timelines to 60 days.

Conforming Loans in Sierra Madre: Lower Rates for Homes Under the Limit