Choosing a loan type is one of the first big decisions an SCV buyer makes. This guide compares the four main options in general terms so you can have a smarter conversation with your lender.
General education, not advice. This page explains financing, property-tax, and special-assessment concepts for Santa Clarita Valley buyers and homeowners. It is not financial, tax, or legal advice and it is not a loan offer. Mortgage rates and program terms change constantly, and tax rules depend on your specific facts. Confirm every figure and qualifying question with a licensed lender, CPA, or attorney before you act.
Conventional loans
Conforming conventional loans follow limits set annually by county. They typically reward stronger credit and down payment, and private mortgage insurance (PMI) usually applies below 20% down but can be removed later.
FHA loans
FHA loans allow lower down payments and more flexible credit, with government insurance. They carry mortgage insurance premiums that often last the life of the loan unless refinanced.
VA loans
For eligible veterans and service members, VA loans often allow zero down with no monthly mortgage insurance, though a funding fee may apply. They are among the strongest options for those who qualify.
Jumbo loans
When the loan exceeds the conforming limit — common at higher SCV price points — you enter jumbo territory, generally with stricter credit, reserve, and down-payment requirements.
Loan limits change
Federal conforming loan limits and FHA limits are set annually and vary by county; figures change each year, so we do not publish a dollar limit here. Confirm the current Los Angeles County limit with a licensed lender or the official agency.
Rates move
As a rough frame, 30-year fixed rates have hovered around ~6.5–7.0% as of 2026, but rates change daily — treat any number you see as stale and get a current quote from a licensed lender.
Match the loan to the home with Brian
Brian Cooper can connect you with reputable lenders and help you understand which loan type fits your SCV purchase. Contact Brian or call (805) 723-2498.
Frequently Asked Questions
What is the difference between conventional and FHA?
Conventional loans are private and follow conforming limits, generally favoring stronger credit and down payment. FHA loans allow lower down payments and more flexible credit but carry government mortgage insurance that often lasts the life of the loan.
Is a VA loan better?
For eligible veterans it can be excellent — often zero down with no monthly mortgage insurance, though a funding fee may apply. Eligibility is required.
When do I need a jumbo loan?
When the loan amount exceeds the annual conforming limit for LA County, which is common at higher SCV price points. Jumbo loans have stricter requirements.
What are current mortgage rates?
Rates change daily; as a rough frame they have hovered around ~6.5–7.0% as of 2026, but treat any number as stale and get a current quote from a licensed lender.
What is the conforming loan limit in LA County?
It is set annually and changes each year, so we do not publish a figure here. Confirm the current LA County limit with a licensed lender.
Is this a loan offer?
No. This is general education, not a loan offer or financial advice. Confirm terms with a licensed lender.
