For Los Angeles buyers borrowing more than $1,249,125 — the point where a normal loan stops and a jumbo begins.
Any loan above LA County’s high-balance conforming limit of $1,249,125. Above that line, a different set of lenders and rules takes over.
Every mortgage in LA County falls into one of these three buckets, decided purely by the loan amount.
| Loan Type | Loan Amount | What It Means | Lowest Typical Down |
|---|---|---|---|
| Conforming | Up to $832,750 | The standard loan. Follows Fannie Mae and Freddie Mac rules. | 3% |
| High-Balance | $832,750 – $1,249,125 | Still conforming, but priced a little differently because the balance is larger. Exists because LA is a high-cost county. | 5% |
| Jumbo | Above $1,249,125 | Too big for agency rules. The lender keeps the loan, so it sets its own guidelines. | 10–20% |
Conforming — a loan that fits the rules Fannie Mae and Freddie Mac set, so it can be sold to them after closing.
Loan limits are set each year and are specific to LA County. Other California counties have lower limits.
Your down payment decides which tier you land in. Here’s the same $1,500,000 home, financed two ways.
$300,000 down leaves a $1,200,000 loan. That’s under the $1,249,125 cutoff, so it’s still a high-balance conforming loan.
$150,000 down leaves a $1,350,000 loan. That crosses the cutoff, so now it’s jumbo — different guidelines, different reserve requirements.
Neither one is automatically better. Sometimes stretching to 20% down to stay under the cutoff is the smarter move; sometimes keeping the cash and taking the jumbo loan is. It depends on your rate, your reserves, and what you want that money doing.
Run the two side by side with the Payment Calculator, or see where each tier is priced today on Today’s Rates.
With a median home price well above national averages, most LA buyers in desirable neighborhoods need jumbo financing. The right jumbo program with competitive ARM rates can outperform conforming pricing.
Jumbo lenders keep these loans on their own books. That means two things matter more than they do on a smaller loan: how much you put down, and how much you have left afterward.
Reserves — the money you still have left after closing, counted in months of mortgage payments.
If your full payment is $8,000 a month and you have $48,000 left in the bank after your down payment and closing costs, you have six months of reserves.
Most jumbo programs want somewhere between 6 and 12 months. Larger loans and second homes tend to want more. Retirement and brokerage accounts usually count, often at a discounted value.
Want to see what a payment actually looks like at these loan sizes? Use the Payment Calculator, or check what you can comfortably borrow with the Affordability Calculator.
This is the most common jumbo problem in Los Angeles: the income is there, but the tax returns don’t show it.
Write-offs that save you money in April work against you when you apply for a mortgage. A traditional jumbo lender reads your tax returns and sees your net income — not your revenue.
There are three normal ways around it:
Down payments on these usually start around 20–25%, and reserve requirements run higher than a full-doc jumbo. In exchange, you never hand over a tax return.
Start here: Bank Statement Loans, Asset Depletion, P&L Only, or the full Self-Employed Mortgage guide.
Second homes are financeable at jumbo loan amounts. The rules are just a little tighter than they are on the home you live in.
The five that come up most — and the rest below them.
Above $1,249,125. That’s the high-balance conforming limit for LA County. Any loan larger than that is a jumbo loan.
The loan amount. A $1.6 million home with 40% down is a $960,000 loan — not jumbo. A $1.4 million home with 10% down is a $1,260,000 loan — jumbo.
A conforming loan between $832,750 and $1,249,125. It still follows Fannie Mae and Freddie Mac rules, but the larger balance is priced a little differently. High-cost counties like Los Angeles have this middle tier; most of the country does not.
20% is the most common. 10–15% is available on many programs with stronger credit and more reserves. Loans well above $2 million, and loans that qualify on bank statements or assets, usually want 25–30%.
Reserves are the money you have left after closing, measured in months of mortgage payments. Most jumbo programs want 6 to 12 months. Retirement and brokerage accounts usually count, often at a discounted value.
Not at 20% down or more. Some programs allow less than 20% down without traditional mortgage insurance by building the cost into the rate instead.
700 and up covers most jumbo programs. Some go lower with a larger down payment and more reserves. The higher your score, the more options you have.
Yes. If your tax returns show enough income, a standard full-doc jumbo works. If write-offs have lowered your net income, a bank statement, asset utilization, or P&L only jumbo qualifies you a different way. See Bank Statement Loans.
Not automatically. Jumbo pricing moves independently of conforming pricing, and adjustable-rate jumbo options are often competitive. Compare current pricing on Today’s Rates.
Sometimes. It’s worth running both ways before you decide. Staying under $1,249,125 can simplify the file, but tying up extra cash to get there isn’t always the better trade — especially when reserves matter.
Yes. Expect at least 20% down and reserves for both properties. The home also has to be plausible as a second home — a reasonable distance away and available for your own use.
Similar to any other loan — typically 21 to 30 days. Jumbo files ask for more documentation up front, so getting statements and returns in early is what keeps it on schedule.
Send your target price, down payment, and credit range. You’ll get a real jumbo rate comparison back — no application, no credit pull.