Jumbo loans in California

When you need a jumbo loan

Each year the Federal Housing Finance Agency sets the conforming loan limit, and in high-cost counties it is raised above the national baseline. Los Angeles, Ventura, Santa Clara, Alameda and other expensive California counties have higher limits than most of the country. If your loan amount is above your county’s limit, it is a jumbo loan.

In our part of the state that is common. Larger homes in Thousand Oaks, Westlake Village, Woodland Hills, Calabasas and much of the Bay Area cross the limit with an ordinary down payment. Even in Simi Valley, homes in Wood Ranch and Long Canyon often do.

High-balance conforming or jumbo?

Between the national baseline and your county’s higher limit is a band called high-balance conforming. Those loans still follow Fannie Mae and Freddie Mac rules. Above the county limit, the loan is a true jumbo. When a loan sits near the line, we price it both ways. Sometimes putting a little more down to stay conforming saves money; sometimes the jumbo is priced better outright.

What jumbo lenders look for

• Credit. Most programs want a 680 score or higher, with the best pricing above 740 to 760.
• Down payment. Many programs start at 10% down on a primary home. 20% down opens the most options.
• Reserves. Savings or retirement funds equal to several months of payments after closing, often six to twelve months.
• Debt-to-income. Typically 43% or less, with some programs allowing more for strong files.
• Appraisal. Larger loans may require two appraisals, especially on unique or luxury properties.

Jumbo loan options

We arrange 30-year and 15-year fixed rate jumbo loans and 5, 7 and 10-year adjustable rate jumbos. ARMs are popular on large balances, because a lower rate during the fixed period saves real money if you plan to move or refinance within that time. Interest-only jumbo options are available for qualified borrowers who want lower payments in the early years.

Self-employed buyers can use full tax-return documentation, or our non-QM bank statement jumbo programs when tax returns understate real income. Investors buying higher-priced rentals can look at DSCR loans.

Make your move into a luxury home

The jumbo buyers who have the smoothest closings are the ones who get fully pre-approved before shopping. Jumbo underwriting is more detailed, so we review assets, income and credit up front and confirm what the investor will want to see. Then, when you find the home, your offer arrives with financing that a listing agent can trust.

Refinancing a jumbo loan

If you have a jumbo balance and today’s rates are below yours, a jumbo refinance can lower a large payment. If your rate is already low and you want cash, compare a HELOC first. Our lines go up to $800,000, so even large equity needs can often be met without touching a low-rate jumbo first mortgage.

Why shop a jumbo through a lender that can also broker

Conforming loans are priced off the same Fannie Mae and Freddie Mac rules everywhere, so lenders land close together. Jumbo loans are different: each investor sets its own credit, reserve and pricing rules, and the spread between lenders can be large on the same file. Shopping several jumbo investors at once is the simplest way to make sure you get the rate your profile deserves, and to find a lender whose guidelines fit unusual income or property.