Because home prices on the Westside are high, many buyers need a jumbo loan in Los Angeles. A jumbo loan is a mortgage larger than the conforming loan limit set each year by the federal housing agency. Limits are higher in high-cost areas like Los Angeles County, so check the current limit with a lender.
How jumbo loans differ
Conforming loans can be bought by Fannie Mae and Freddie Mac. Jumbo loans cannot, so lenders set their own rules and take on more risk. That usually means stricter underwriting.
Typical jumbo loan requirements
- Credit score: higher than for many conventional loans, often in the high 600s to 700s or above.
- Down payment: commonly 10% to 20% or more, depending on the loan amount and lender.
- Reserves: several months, sometimes 6 to 12 months of payments in the bank after closing.
- Debt-to-income ratio: usually moderate, often up to the low-to-mid 40s percent.
- Documentation: full income and asset documentation, and a thorough appraisal.
Rates and loan types
Jumbo rates are sometimes close to, and occasionally lower than, conforming rates, depending on the lender and market. Options include fixed-rate loans, adjustable-rate mortgages (ARMs) and interest-only structures. Compare the full cost, not just the rate.
Jumbo for the self-employed
Some lenders offer jumbo programs using bank statements or other alternative documentation. See our guide to self-employed mortgages.
How to prepare
- Check your credit report and fix errors.
- Build reserves and keep large deposits documented.
- Pay down credit cards and avoid new debt.
- Get prequalified so you know your price range.
Is a jumbo loan right for you?
If the home you want requires a loan above the conforming limit, a jumbo is the natural fit. Sometimes a larger down payment can bring the loan under the limit. Compare both before deciding. See our loan programs.
Frequently asked questions
What is the jumbo loan limit in Los Angeles County?
It changes yearly and is higher than in most areas. Ask a lender for the current limit.
Is the down payment higher for a jumbo loan?
Often yes, commonly 10% to 20% or more, but programs vary.
Are jumbo loan rates higher?
Not always. They can be similar to conforming rates. Compare quotes.
Buying on the Westside? Compare jumbo and conventional options before you shop.
This article is general information, not a loan commitment, legal or tax advice. Programs, rates and rules change, so confirm current details with a licensed professional before you decide.
Written by the Terranova Real Estate Group team · DRE 01785581 · NMLS 1091484 · Meet Griselda Espinoza