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in West Covina, CA
West Covina sits in a unique spot where some homes need conventional financing and others require jumbo loans. The difference comes down to loan limits — $806,500 for conventional in Los Angeles County as of 2025.
Cross that threshold and you're in jumbo territory. Different approval standards, different rates, different down payment rules.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. You can put down as little as 3% on a primary residence, though 20% avoids PMI.
Credit scores start at 620 for most programs, but 740+ gets you the best pricing. We see most West Covina buyers close with 5-10% down on homes under the conforming limit.
Jumbo loans fund purchases above conforming limits with no maximum ceiling. These aren't government-backed, so lenders set their own standards — usually stricter than conventional.
Expect 10-20% down minimums depending on the lender. Credit scores typically need to hit 700 minimum, with 740+ preferred for competitive rates.
Credit standards separate these loans more than anything. Conventional accepts 620 credit scores; jumbo lenders want 700 or better. Debt-to-income ratios also run tighter on jumbo — 43% is standard versus 50% on conventional.
Cash reserves matter more with jumbo loans. Most lenders want 6-12 months of payments in the bank after closing. Conventional might not require any reserves depending on your down payment and credit.
Rates can surprise borrowers. Jumbo rates sometimes beat conventional when credit is strong. But one late payment in the past year can spike jumbo pricing while barely affecting conventional.
If your West Covina purchase stays under $806,500, conventional wins for flexibility. Lower credit standards, smaller down payments, and easier approval for most W-2 earners.
Above that limit, jumbo is your only option unless you increase your down payment to bring the loan amount under conforming limits. That strategy works if you've got the cash and want conventional's easier qualification.
For high earners with strong credit buying luxury properties, jumbo loans work smoothly. Just know lenders will scrutinize income documentation and asset verification more closely than conventional.
$806,500 for single-family homes in Los Angeles County. Anything above that requires jumbo financing or a larger down payment.
Some lenders allow it with excellent credit and strong reserves. Most prefer 15-20% down for competitive pricing.
Not always. Borrowers with 760+ credit often see jumbo rates match or beat conventional pricing depending on market conditions.
Most lenders set minimums at 700, but 740+ unlocks better rates. Some portfolio lenders go to 680 with compensating factors.
Yes. If your purchase price is $900,000, putting down $93,500 keeps your loan at $806,500 — conventional territory.