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in Westlake Village, CA
Westlake Village straddles the luxury market line. Some homes fit conventional loan limits while others require jumbo financing.
The difference isn't just loan size. These programs have different rate structures, down payment rules, and approval standards that affect your monthly payment and closing timeline.
Conventional loans cap at $766,550 in Los Angeles County for single-family homes. That covers many Westlake Village condos and smaller single-family properties.
You can put down as little as 3% with strong credit. PMI applies below 20% equity but drops off automatically at 78% loan-to-value.
Fannie and Freddie backing means more flexibility with income documentation. Most W-2 earners qualify easily with 620+ credit and 43% debt-to-income.
Jumbo loans start at $766,551 in LA County. That's most single-family homes in Westlake Village's established neighborhoods.
Lenders set their own rules without Fannie or Freddie backing. Expect 10-20% down minimum and tighter credit standards—typically 700+ score required.
No PMI regardless of down payment. But you'll need stronger reserves, usually 12 months of mortgage payments in the bank after closing.
The rate gap between conventional and jumbo has narrowed. Jumbo rates sometimes beat conventional because lenders want this business and borrowers have strong profiles.
Down payment is where they split. Conventional allows 3% down while jumbo typically requires 10% minimum, often 20% for best pricing.
Reserves matter more on jumbo. Conventional might need 2-6 months of payments in the bank. Jumbo wants 12+ months, especially on million-dollar purchases.
Your purchase price decides this first. Below $766,550, conventional wins on flexibility and lower down payment options.
Above that threshold, jumbo is your only choice. But if you're buying near the limit—say $800,000—you might restructure with a bigger down payment to stay conventional.
Run both scenarios. A $750,000 purchase with 5% down fits conventional. An $850,000 purchase needs jumbo but might cost less monthly than conventional with PMI at the limit.
$766,550 for single-family homes in 2024. Anything above that requires jumbo financing.
Not always. Jumbo rates often match or beat conventional because borrowers have strong credit and lenders compete for this business.
Yes. If you're buying $850,000, put 20% down to get a $680,000 loan that fits conventional limits.
Lenders want proof you can handle payments without Fannie or Freddie backing. 12 months of reserves is standard on million-dollar purchases.
Both take 21-30 days typically. Jumbo might add a few days for additional underwriting review.