Kiyoshi Inui — President & Loan Originator · Los Angeles County · Conventional Loans · 2026
Conventional Loans in Los Angeles County
Conventional loans — conforming and high-balance — are the most widely used mortgage product in Los Angeles County. With the high-balance conforming limit at $1,249,125 for a 1-unit property, conventional financing covers a substantial portion of the LA County market without requiring jumbo underwriting.
Direct Answer: Conventional loans in Los Angeles County include standard conforming loans (up to the national baseline limit) and high-balance conforming loans (up to $1,249,125 for a 1-unit property). Both are backed by Fannie Mae or Freddie Mac guidelines. Conventional loans require a minimum 3% down payment for first-time buyers and 5% for repeat buyers in most cases. Private mortgage insurance (PMI) is required when the down payment is less than 20% but can be removed once the loan-to-value reaches 80%. Conventional loans are available for purchases, rate-and-term refinances, and cash-out refinances. Our team reviews conventional eligibility and compares it to FHA, VA, and jumbo options for your specific Los Angeles County transaction.
Conventional Loans in Los Angeles County — Overview
Conventional loans are mortgages that conform to Fannie Mae or Freddie Mac guidelines and are not insured by a government agency (FHA, VA, or USDA). They are the most common mortgage product in Los Angeles County and are available for purchases, rate-and-term refinances, and cash-out refinances on owner-occupied, second home, and investment properties.
Los Angeles County is a designated high-cost area, which means the FHFA sets a higher conforming loan limit for the county than the national baseline. This high-balance conforming limit — currently $1,249,125 for a 1-unit property — allows borrowers purchasing or refinancing properties in this price range to use conventional financing rather than jumbo programs, which typically have more restrictive underwriting requirements.
For Los Angeles County borrowers purchasing properties above the high-balance conforming limit, jumbo financing is required. Our team reviews the current limits and the full program landscape before any recommendation is made.
Conforming vs. High-Balance Conventional — Los Angeles County
| Feature | Standard Conforming | High-Balance Conforming |
|---|---|---|
| Loan Limit (1-Unit) | Up to national baseline | Up to $1,249,125 (LA County) |
| Backed By | Fannie Mae / Freddie Mac | Fannie Mae / Freddie Mac |
| Rate Premium | Baseline rate | Slight premium over standard conforming |
| PMI Required | Below 20% down | Below 20% down |
| Property Types | 1–4 unit, condo, PUD | 1–4 unit, condo, PUD |
| Occupancy | Primary, second home, investment | Primary, second home, investment |
Conventional Loan Program Specifications — Los Angeles County
| Specification | Detail |
|---|---|
| High-Balance Limit (1-Unit) | $1,249,125 — Los Angeles County |
| High-Balance Limit (2-Unit) | $1,599,350 — Los Angeles County |
| High-Balance Limit (3-Unit) | $1,932,300 — Los Angeles County |
| High-Balance Limit (4-Unit) | $2,042,625 — Los Angeles County |
| National Baseline (1-Unit) | $832,750 — Standard conforming limit |
| Minimum Down Payment | 3% (first-time buyer) / 5% (repeat buyer) — subject to program guidelines |
| PMI | Required below 20% LTV; removable at 80% LTV |
| Rate Types | Fixed (10, 15, 20, 25, 30 year) and adjustable (ARM) |
| Property Types | SFR, condo, PUD, 2–4 unit |
| Occupancy | Primary residence, second home, investment property |
| Loan Purposes | Purchase, rate-and-term refinance, cash-out refinance |
| Income Documentation | Standard full documentation (W-2, tax returns, pay stubs) |
Down Payment Options — Conventional Loans in Los Angeles County
3% Down — First-Time Buyer Programs
Conventional programs with 3% minimum down payment are available for qualifying first-time homebuyers in Los Angeles County. PMI is required until the loan-to-value reaches 80%. Income limits may apply depending on the specific program.
5–19% Down — Standard Conventional with PMI
Conventional loans with down payments between 5% and 19% require PMI, which can be removed once the loan-to-value reaches 80% through payments or appreciation. This is the most common down payment range for Los Angeles County conventional borrowers.
20%+ Down — No PMI
A 20% or greater down payment eliminates the PMI requirement on conventional loans. For Los Angeles County buyers purchasing at the high-balance conforming limit, a 20% down payment represents a significant capital requirement. Our team reviews all down payment scenarios before any recommendation is made.
Conventional vs. FHA — Los Angeles County
| Feature | Conventional | FHA |
|---|---|---|
| Minimum Down Payment | 3% (first-time) / 5% (repeat) | 3.5% (with qualifying credit) |
| Mortgage Insurance | PMI — removable at 80% LTV | MIP — typically for life of loan |
| Credit Flexibility | Stricter guidelines | More flexible guidelines |
| Loan Limit (1-Unit, LA County) | Up to $1,249,125 | FHA high-cost limit (lower than conventional) |
| Investment Property | Available | Not available (owner-occupied only) |
| Second Home | Available | Not available |
Frequently Asked Questions
What is the high-balance conventional loan limit in Los Angeles County?
High-Balance Conventional Loan Limit in Los Angeles County — the high-balance conforming loan limit for a 1-unit property in Los Angeles County is $1,249,125 for 2026. This limit is set annually by the FHFA and is subject to change. Properties above this limit require jumbo financing. The high-balance limit applies to both purchase and refinance transactions. Our team confirms the current limits and how they apply to your specific Los Angeles County transaction.
Can I get a conventional loan with less than 20% down in Los Angeles County?
Conventional Loans with Less Than 20% Down in Los Angeles County — yes, conventional loans are available with down payments as low as 3% for qualifying first-time homebuyers and 5% for repeat buyers. When the down payment is less than 20%, private mortgage insurance (PMI) is required. PMI can be removed once the loan-to-value ratio reaches 80% through a combination of principal payments and property appreciation. Our team reviews the PMI cost and removal timeline for your specific Los Angeles County transaction before any recommendation is made.
What is the difference between a standard conforming and a high-balance conventional loan in Los Angeles County?
Standard Conforming vs. High-Balance Conventional in Los Angeles County — both are conventional loans backed by Fannie Mae or Freddie Mac guidelines. The difference is the loan limit: standard conforming loans are up to the national baseline limit, while high-balance conforming loans are up to $1,249,125 for a 1-unit property in Los Angeles County. High-balance loans typically carry a slight rate premium over standard conforming loans. Both require PMI below 20% LTV. Our team reviews which tier applies to your specific Los Angeles County purchase or refinance.
Can I use a conventional loan to buy an investment property in Los Angeles County?
Conventional Loans for Investment Property in Los Angeles County — yes, conventional loans are available for investment properties (non-owner-occupied) in Los Angeles County. Investment property conventional loans typically require a higher down payment (15–25% depending on property type and program) and may have slightly higher rates than owner-occupied conventional loans. FHA loans are not available for investment properties. For investors who cannot qualify through standard income documentation, DSCR loans — which qualify based on rental income rather than personal income — are available through our Non-QM programs. Our team reviews all options for your specific Los Angeles County investment property.
When should I choose conventional over FHA in Los Angeles County?
Conventional vs. FHA in Los Angeles County — conventional financing is generally preferable when the borrower has strong credit, a down payment of 5% or more, and does not need the more flexible credit guidelines that FHA provides. The key advantage of conventional over FHA is that PMI can be removed at 80% LTV, while FHA MIP typically remains for the life of the loan. For borrowers with credit challenges or limited down payment, FHA may be more accessible. For borrowers purchasing investment properties or second homes, conventional is the only option — FHA is restricted to owner-occupied primary residences. Our team reviews both options for your specific Los Angeles County situation.
Review Conventional Loan Options for Your Los Angeles County Transaction
Our team reviews your purchase price, down payment, credit profile, and income documentation — then compares conventional to FHA, VA, and jumbo options with honest trade-offs.
Schedule Consultation All Loan Programs