Jumbo Loans
Financing for high-value properties that exceed conforming loan limits — with competitive rates and flexible terms for qualified borrowers.
Buying above the limit doesn’t mean settling for less. It means finding the right lender.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits are updated annually and vary by county — in high-cost areas like parts of California, they can be significantly higher. Anything above your county’s limit requires jumbo financing.
Because jumbo loans can’t be purchased by Fannie Mae or Freddie Mac, they’re held by the lender or sold to private investors. This means underwriting standards can vary, but the best jumbo programs offer rates that are competitive with — and sometimes better than — conforming loans.
Who Is This Best For?
Jumbo loans are designed for borrowers purchasing luxury homes, properties in high-cost markets, or anyone whose loan amount exceeds the conforming limit. They work well for high-income professionals, business owners, and anyone with strong assets and credit.
If you’re buying in a California coastal market, there’s a good chance you’ll need jumbo financing. The key is working with a lender who has access to competitive jumbo products — not all lenders do.
What You’ll Need to Qualify
- Credit score: Typically 700+ (some programs accept 680)
- Down payment: 10-20% minimum depending on the loan amount
- Debt-to-income ratio: Generally 43% or below
- Reserves: 6-12 months of mortgage payments in liquid assets
- Documentation: Full income documentation — tax returns, bank statements, asset verification
Jumbo loans have stricter qualification requirements than conforming loans, but the right program can still offer excellent terms. Some jumbo products even allow interest-only payments or asset-based qualification for high-net-worth borrowers.
Key Advantages of Jumbo Loans
Finance High-Value Properties
No need to bring a massive down payment just to stay under the conforming limit. Jumbo loans let you finance the full purchase price of luxury and high-cost properties.
Competitive Interest Rates
Today’s jumbo rates are often comparable to conforming rates — and sometimes even lower. Strong borrower profiles are rewarded with premium pricing.
Flexible Loan Structures
Choose from fixed or adjustable rates, interest-only options, and various term lengths. Jumbo programs offer more customization than standard conforming products.
One Loan Instead of Two
Instead of splitting your financing into a first and second mortgage to stay under the conforming limit, a jumbo loan simplifies everything into a single loan with one payment.
Common Questions About Jumbo Loans
What’s the current conforming loan limit?
The standard conforming limit is updated each year by the FHFA, and high-cost counties (common in California) have even higher limits. Anything above your county’s limit requires a jumbo loan. I can tell you the exact limit for the area where you’re buying.
Are jumbo loan rates higher than regular rates?
Not necessarily. While jumbo rates were historically higher, they’ve been very competitive in recent years — sometimes even lower than conforming rates for well-qualified borrowers. Your rate depends on your credit profile, down payment, and the specific program.
Can I get a jumbo loan with less than 20% down?
Yes — some jumbo programs allow as little as 10% down, though you may pay a slightly higher rate or need to carry private mortgage insurance. The most competitive terms typically require 20% or more.
Do jumbo loans take longer to close?
Jumbo loans can take slightly longer due to more thorough underwriting, but a well-prepared application can close in 30-45 days. Having your documentation ready upfront makes a big difference in timeline.
Let’s Talk About Your Jumbo Financing
No pressure. No obligation. Just clarity.
Most people start with a quick call — it makes everything easier.
Garry McDonald | NMLS #1922072 | DRE# 01781703 | (949) 534-6686