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Conforming Loans in Torrance
Torrance sits in a unique position. Median home prices hover near conforming loan limits but rarely exceed them consistently.
Most South Bay buyers qualify for conforming rates. This means access to better pricing than jumbo loans and less paperwork than FHA.
When prices spike, you might need a jumbo loan instead. But most Torrance properties still fall under $766,550 for single-family homes.
If you're buying a condo or townhome in West Torrance, you'll almost always stay conforming. Detached homes in older neighborhoods usually fit too.
You need 620 credit minimum. Most lenders want 640 for best pricing.
Down payment starts at 3% for first-time buyers. You'll pay PMI until you hit 20% equity.
Debt-to-income ratio caps at 50% with strong credit. Lenders prefer 43% or lower for smooth approvals.
Two years of steady income required. W-2 earners qualify easiest, but we can work with 1099s using tax returns.
We shop 200+ lenders for conforming loans. Rate spreads between best and worst can hit 0.5% on the same day.
Credit unions quote conforming loans but they're stuck with their own rates. We compare across the entire market.
Some lenders price better for condos. Others beat everyone on single-family homes with 20% down.
Overlays matter more than advertised rates. One lender might deny 3% down on a condo while another approves it instantly.
Torrance buyers often waste money putting 20% down just to avoid PMI. Run the numbers first—PMI might cost less than draining savings.
If you're close to conforming limits, consider a smaller down payment. Keeping cash reserves can help you qualify for a bigger loan.
Refinancing out of PMI takes 2-3 years in most cases. Don't believe lenders who promise 12-month timelines without appraisal gains.
We see buyers choose FHA over conforming for no reason. Unless your credit is under 640, conforming costs less monthly and long-term.
Conforming loans beat FHA on monthly cost. No upfront mortgage insurance and lower ongoing PMI rates.
Jumbo loans start when you exceed $766,550. Rates run 0.25-0.75% higher and require 10-20% down minimum.
ARMs offer lower initial rates but conforming 30-year fixed protects you if rates spike. Most Torrance buyers stay put 7+ years.
Conventional loans and conforming loans overlap completely. They're the same product when under Fannie/Freddie limits.
Torrance has hundreds of condo complexes. Not all qualify for conforming loans—some fail Fannie Mae approval due to investor ratios.
We check condo approval status before you write offers. Finding out at appraisal wastes 30 days and kills deals.
Older homes near Torrance Boulevard need inspection contingencies. Lenders won't fund properties with foundation or electrical issues.
Property taxes in Torrance run 1.1-1.2% of purchase price. Factor this into your debt ratio calculations before shopping for homes.
$766,550 for single-family homes. This matches the standard limit across most of Los Angeles County.
Yes, if the complex is Fannie Mae approved. We verify approval status before you submit offers to avoid financing delays.
3% minimum for first-time buyers, 5% for repeat buyers. You'll pay PMI until you reach 20% equity through payments or appreciation.
Yes, typically 0.25-0.75% lower. Conforming loans qualify for Fannie Mae backing, which reduces lender risk and cost.
620 minimum to qualify. You'll get best pricing at 740+ credit with 20% down payment.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.