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in South El Monte, CA
The difference between conventional and jumbo loans comes down to one number: the conforming loan limit. In Los Angeles County, that limit is $832,750 as of 2026.
Buy under that threshold and you qualify for conventional financing with lower rates and easier approval. Go over it and you need a jumbo loan with stricter requirements but the ability to finance higher-priced properties.
Conventional loans work for any home priced below $832,750 in South El Monte. You can put down as little as 3% with credit scores starting at 620, though 5-10% down gets you better rates.
Fannie Mae and Freddie Mac buy these loans from lenders, which keeps rates competitive. PMI drops off automatically once you hit 78% loan-to-value, unlike FHA loans where it sticks around.
Jumbo loans finance anything over $832,750 in Los Angeles County. You need stronger credit and bigger reserves because these loans carry more risk for lenders.
Most jumbo lenders want 10-20% down and credit scores above 700. Expect to show 6-12 months of reserves and document income more thoroughly than conventional deals.
Rates on conventional loans run about 0.25-0.5% lower because they carry government-sponsored backing. Jumbo rates are higher to offset the extra risk lenders take on larger loan amounts.
Approval standards differ sharply. Conventional loans accept higher debt-to-income ratios (up to 50% in some cases) and lower credit scores. Jumbo lenders cap DTI around 43% and scrutinize income sources more carefully.
Down payment requirements favor conventional buyers. You can go as low as 3% on conforming amounts. Jumbo loans start at 10% minimum, and many lenders prefer 20% to avoid higher rates.
If your purchase price stays under $832,750, conventional loans give you better rates and easier approval. You save money every month and face fewer hoops during underwriting.
Jumbo loans make sense only when you need to borrow more than the conforming limit. South El Monte has plenty of properties under $832,750, so most buyers here use conventional financing and avoid the jumbo premium altogether.
Stay even one dollar under and you qualify for conventional rates. Going over pushes you into jumbo territory with higher rates and tougher approval standards.
Yes. If the property costs $900,000 and you put down $100,000, your loan amount drops to $800,000—under the conforming limit. You get conventional rates on the loan.
In 2026, yes. Jumbo rates run 0.25-0.5% higher because lenders carry more risk on larger loan amounts without government backing.
Conventional loans have more flexible approval standards. Lower credit scores work, debt-to-income limits run higher, and reserve requirements stay lighter than jumbo loans.
Yes, as long as the purchase price stays under $832,750. Investment property rates run about 0.5-0.75% higher than primary residence rates, but you avoid jumbo pricing.