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in Whittier, CA
Whittier sits in a pricing sweet spot where many buyers face a crucial decision. You're shopping homes that might push past conforming loan limits, which means choosing between conventional and jumbo financing.
The difference isn't just loan size—it's approval standards, rates, and down payment requirements. Most Whittier buyers assume jumbo loans are harder to get, but that's only half true.
Conventional loans work for purchases up to $806,500 in Los Angeles County. You can put down as little as 3% with decent credit, though 20% down eliminates PMI and gets you better rates.
These loans follow Fannie Mae and Freddie Mac guidelines, which means predictable underwriting. Credit scores as low as 620 qualify, but you'll pay for it in rate adjustments.
Most Whittier buyers use conventional financing because it offers the lowest barrier to entry. The trade-off is PMI on anything below 20% down, which adds $100-300 monthly on typical loan amounts.
Jumbo loans handle anything above $806,500, which covers higher-end Whittier properties and anything in nearby neighborhoods pushing luxury pricing. These loans don't follow Fannie Mae rules—each lender sets their own box.
You typically need 10-20% down depending on loan size, though some lenders go lower with strong credit. Expect minimum 700 credit score requirements, often 720+ for best pricing.
The upside: no PMI regardless of down payment. Lenders price risk into the rate instead of tacking on insurance. For borrowers with strong income documentation, jumbo rates often match or beat conventional.
The loan limit split is straightforward—$806,500 and below goes conventional, anything higher needs jumbo. But the real difference shows up in underwriting appetite for risk.
Conventional loans follow fixed guidelines that every lender uses. Jumbo lenders each have their own credit overlays, debt-to-income caps, and reserve requirements. This means more shopping across lenders to find your best terms.
Down payment flexibility favors conventional below 20% equity. But once you hit 20% down, jumbo loans eliminate PMI entirely while conventional borrowers are just getting there. Rate difference? Usually 0-0.5% depending on your profile.
If you're buying under $806,500 with less than 20% down, conventional wins on accessibility. The 3% down option and 620 credit floor get more buyers approved, even if PMI adds cost.
Above $806,500, you're in jumbo territory by default. But even below that limit, high-income borrowers with 20%+ down should price both—jumbo rates can undercut conventional when you bring strong credit and reserves.
In Whittier specifically, most buyers stay conventional. But if you're eyeing homes in the $700k-900k range, run both options. Small rate differences compound over 30 years, and no PMI saves real money monthly.
$806,500 for Los Angeles County in 2024. Anything above that requires jumbo financing regardless of property type.
No on conventional—PMI is required below 20% equity. Jumbo loans never have PMI, but require higher down payments to qualify.
Rates vary by borrower profile and market conditions. Strong credit often gets competitive jumbo rates that match conventional pricing.
Yes. Most jumbo lenders want 700+ credit, often 720+ for best terms. Conventional loans start qualifying at 620.
Typically 10-20% depending on loan amount and lender. Loans above $1.5M usually require 20% minimum across most lenders.