Loading
in Signal Hill, CA
Signal Hill sits in one of California's most expensive housing markets. Your loan type depends entirely on your purchase price and how much you're putting down.
Most buyers here start with a conventional loan. But once you cross the conforming limit, you're shopping jumbo territory with different rules.
Conventional loans work for properties under the conforming limit. In Los Angeles County, that's $806,500 for a single-family home in 2025.
You need 620 minimum credit, though 740+ gets you the best pricing. Put down 3% to avoid PMI hassles, or 20% to skip it entirely.
These loans get sold to Fannie Mae or Freddie Mac. That backing means lenders offer competitive rates and straightforward underwriting.
Jumbo loans start where conventional loans stop. Anything above $806,500 needs jumbo financing with stricter approval standards.
Expect to show 700+ credit and at least 10-20% down. Lenders want bigger reserves too—usually 6-12 months of payments in the bank.
No government backing here. The lender holds the risk, so they scrutinize income, assets, and debt ratios harder than conventional deals.
The conforming limit draws a hard line. Below it, you have access to cheaper money with easier approval. Above it, you pay for the privilege.
Jumbo rates run 0.25-0.75% higher on average. That spread widens if your credit isn't pristine or you're putting less than 20% down.
Documentation gets heavier on jumbo deals. Expect full income verification, detailed asset sourcing, and sometimes explanations for large deposits.
Conventional loans let you slide with 43% debt-to-income in most cases. Jumbo lenders often cap you at 38-40% depending on the file.
If you're buying under $806,500 in Signal Hill, stick with conventional. You'll save on rate and skip the extra underwriting hoops.
Shopping above that limit? Jumbo is your only option unless you make a massive down payment to bring the loan amount under conforming.
Some borrowers split the difference. Put down enough to keep the loan conventional, then pull equity later if needed. It's slower but cheaper upfront.
Anything above $806,500 for a single-family home in Los Angeles County qualifies as jumbo. That's the 2025 conforming limit for this area.
Some lenders allow it with strong credit and reserves. Most prefer 15-20% down to offset the higher risk on non-conforming loans.
Usually, but not always. Borrowers with 760+ credit and 25% down sometimes see jumbo rates match or beat conventional pricing.
Minimum is 620, but you'll pay more in rate. 740+ gets you into the best pricing tiers most lenders offer.
Jumbo loans don't use PMI the same way. You either put down 20%+ or accept a higher rate to compensate the lender for the risk.