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in Walnut, CA
Walnut sits in a price band where many buyers cross into jumbo territory without realizing it. One loan caps at conforming limits, the other handles anything above.
The choice affects your rate, down payment, and who underwrites your file. Most Walnut buyers need to understand both options before making an offer.
Conventional loans max out at $806,500 in Los Angeles County for 2024. That's the conforming limit set by the FHFA.
These loans sell to Fannie Mae or Freddie Mac, which keeps rates competitive. You can put down as little as 3% if you're a first-time buyer, 5% otherwise.
Credit requirements start at 620, but you'll get better rates at 740+. PMI drops off automatically once you hit 78% loan-to-value through payments or appreciation.
Jumbo loans kick in above $806,500. There's no upper limit — I've closed loans over $3 million in Walnut.
Lenders hold these on their books instead of selling them, so guidelines vary. Most want 10-20% down, though some programs go lower for strong borrowers.
Expect stricter documentation. You'll need 700+ credit, often 720+ for the best rates. Cash reserves matter more — most lenders want 6-12 months of payments in the bank after closing.
The loan limit draws the clearest line. Under $806,500, conventional wins on flexibility and cost. Above it, jumbo is your only choice unless you increase your down payment.
Rates used to favor conventional by a wide margin. That gap has narrowed — jumbos sometimes price better for borrowers with excellent credit and 20%+ down.
Underwriting intensity differs significantly. Conventional follows fixed Fannie/Freddie rules. Jumbo lenders layer on extra scrutiny around income documentation, asset verification, and debt ratios.
If your Walnut purchase price keeps you under $806,500, conventional makes sense for most buyers. Lower down payment options and easier qualification outweigh any rate differences.
Above that threshold, jumbo becomes necessary. Focus on bringing 20% down if possible — it unlocks better rates and avoids jumbo PMI, which costs more and doesn't drop off automatically.
Strong financial profiles get the best jumbo terms. If you're at 740+ credit with solid reserves, jumbo rates often beat what you'd expect. Weaker profiles pay a steeper premium.
Jumbo loans start above $806,500 in Los Angeles County. Anything at or below that amount qualifies as conventional conforming.
Yes, if you bring enough down payment to keep the loan under $806,500. A larger down payment shifts you into conventional territory.
Not anymore. Borrowers with 740+ credit and 20% down often see jumbo rates match or beat conventional pricing.
Most lenders require 700 minimum, but 720+ unlocks better rates. Conventional starts at 620 but also rewards higher scores.
Expect lenders to want 6-12 months of mortgage payments in liquid assets after closing. Conventional typically requires less.