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in South Gate, CA
South Gate sits in the heart of LA County where most homes fall under conforming loan limits. That makes conventional loans the default choice for most buyers here.
Jumbo loans come into play when you're buying above the conforming limit — currently $832,750 in Los Angeles County. Few South Gate properties cross that threshold, but when they do, you need different financing.
Conventional loans max out at $832,750 in South Gate as of February 2026. You can put down as little as 3% with decent credit — 620 minimum, though 680+ gets better pricing.
Fannie Mae and Freddie Mac back these loans, which means standardized underwriting. Private mortgage insurance kicks in below 20% down, but drops off once you hit that equity mark.
Jumbo loans start where conforming limits end — anything over $832,750. You're looking at 10-20% down depending on the lender, with stricter credit requirements.
No government backing means lenders hold more risk. They want 700+ credit scores, lower debt ratios, and bigger reserves — usually 6-12 months of payments in the bank.
Local decision guide
Use this comparison to weigh Conventional Loans and Jumbo Loans through local payment fit, eligibility, documentation, and timing before choosing a path in South Gate.
South Gate sits in the heart of LA County where most homes fall under conforming loan limits. That makes conventional loans the default choice for most buyers here.
Jumbo loans come into play when you're buying above the conforming limit — currently $832,750 in Los Angeles County. Few South Gate properties cross that threshold, but when they do, you need different financing.
Conventional loans max out at $832,750 in South Gate as of February 2026. You can put down as little as 3% with decent credit — 620 minimum, though 680+ gets better pricing.
The loan limit is the obvious split. Conventional caps at $832,750 in LA County. Jumbo picks up everything above that with no upper ceiling.
Underwriting gets tighter with jumbo. You need stronger credit, more cash reserves, and lower debt-to-income ratios. Rates vary by borrower profile and market conditions, but jumbo often runs 0.25-0.75% higher than conventional.
In South Gate, conventional works for nearly every transaction. The median price point here stays well below the conforming limit, making conventional the obvious path.
You only need jumbo if you're buying one of the rare high-end properties that breaks $832,750. Even then, consider splitting into a conventional first with a second lien to avoid jumbo underwriting if the math works.
That's still conforming. Jumbo starts at $806,501 in Los Angeles County. One dollar makes the difference in which program you need.
No. Jumbo lenders require 10-20% minimum depending on loan size and credit strength. Low down payment options only exist in the conforming space.
Usually, but not always. Strong borrowers with big down payments sometimes get competitive jumbo pricing. Rates vary by borrower profile and market conditions.
Most jumbo lenders allow gifts, but require you to contribute some of your own funds. Expect to put in at least 5-10% from your own accounts.
No. Jumbo loans don't use PMI because they're not backed by Fannie or Freddie. You avoid that cost, but you need a bigger down payment upfront.