What Are Jumbo Loans in California 2026?
A jumbo loan is a mortgage that exceeds conforming loan limits set by the Federal Housing Finance Agency. In California, that means any loan above $832,750 in most counties—or $1,249,125 in high-cost areas like the Bay Area and LA.
Why does this matter? Loans above these limits can’t be sold to Fannie Mae or Freddie Mac. Lenders keep them on their own books, which means different rules and requirements.
In California, jumbo loans aren’t just for mansions. They’re how most people buy decent homes in desirable areas.
Note: These limits are updated annually by the FHFA. Verify current limits for your county before applying.
What Are Jumbo Loan Requirements in California 2026?
Don’t meet these exactly? We work with portfolio lenders who offer flexibility for unique situations.
Is a Jumbo Loan Right for You?
High Earners
Doctors, tech executives, attorneys, and business owners with substantial income looking to buy in California’s premium markets.
Jumbo loans let you finance up to $5M+ in a single loan—no need for multiple mortgages or complicated structures.
Real Estate Investors
Building a portfolio of luxury rentals or vacation properties? Jumbo investment loans provide funding for prime California real estate.
Luxury investment properties may also qualify for DSCR loans, which approve based on rental income rather than personal income.
Buyers in High-Cost Markets
Bay Area, LA, Orange County, San Diego—most decent homes exceed conforming limits.
If you’re buying in these markets, jumbo is likely your only option.
Self-Employed Borrowers
Own a business with strong revenue but complex tax returns?
Portfolio jumbo lenders offer bank statement programs and asset-based options that work with your situation.
Get a free assessment → We’ll review your situation and identify the best path forward.
What Are the Main Jumbo Loan Benefits?
No loan limits – Finance up to $5 million or more. Want that $3M Palo Alto home? No problem.
No PMI ever – Zero mortgage insurance regardless of down payment. On a $1.5M loan with 15% down, that saves $450+ monthly compared to conforming with PMI.
Portfolio lender flexibility – Lenders who keep loans in-house offer more flexibility on income docs and unique properties.
Competitive rates – Jumbo rates now run just 0.125-0.25% above conforming—not the 0.75-1% spreads from years ago.
What Are Jumbo Loan Rates in California 2026?
How Do Rates Compare to Conforming?
Historically, jumbo rates ran up to 1% higher than conforming loans.
That’s changed. Today, jumbo rates sit comparable to conforming—sometimes even lower for well-qualified borrowers.
Why? Jumbo borrowers have stronger profiles. Higher credit. Larger down payments. Lower default risk. Lenders price that favorably now.
How Does Credit Score Affect Your Rate?
Credit score drives pricing more than loan amount:
780+ credit: Best rates available. Baseline pricing. Prime jumbo territory.
740-779 credit: Slightly above baseline. Still competitive. Most lenders compete for your business.
720-739 credit: Good rates. Solid approvals. Middle of the market.
700-719 credit: Higher rates. Minimum for most programs. Fewer options but still available.
680-699 credit: Limited lenders. Need compensating factors like 25%+ down and substantial reserves.
Below 680: Very few options. Portfolio lenders only.
How Does Down Payment Affect Your Rate?
More skin in the game = better pricing.
20%+ down: Best rates. Most lender options. Standard jumbo territory.
15-19% down: Add roughly 0.125-0.25% rate premium. Fewer lenders but still competitive.
10-14% down: Higher rates. Limited lender pool. Need strong credit (740+).
Your rate depends on credit, down payment, property type, and loan amount. Call (510) 589-4096 for a quote →
What Additional Costs Come with Jumbo Loans?
Origination fees: Typically 0.5-1% of loan amount. On a $1.5M loan, that’s $7,500-$15,000.
Points: Buying down rates costs roughly 1% per 0.25% rate reduction. Calculate your break-even based on how long you’ll keep the loan.
Appraisal costs: Luxury properties need experienced appraisers. Expect $800-$1,500 for standard homes, more for unique properties.
No PMI benefit: Jumbo loans skip mortgage insurance regardless of down payment. That’s potentially $450+ monthly savings on large loans.
How to Get a Jumbo Loan in California
Step 1: Check Your Financial Profile
Know your credit score, calculate your debt-to-income ratio, and assess your available down payment.
Jumbo loans typically require 700+ credit and 10-20% down. If your score needs work, address it before applying.
Step 2: Gather Documentation Early
Jumbo loans require more paperwork than conforming. Prepare:
- 2 years of tax returns (all pages, all schedules)
- Recent pay stubs (30 days)
- Bank statements (2-3 months, all pages)
- Investment account statements
- Business docs if self-employed (P&L, CPA letter)
Step 3: Get Pre-Qualified
We review your profile and match you with lenders suited to your situation.
This identifies your price range and loan options before you start shopping for homes.
Step 4: Compare Multiple Lenders
We submit your scenario to multiple jumbo specialists, comparing rates, terms, and fees.
Jumbo pricing varies significantly between lenders. Shopping saves thousands.
Step 5: Lock Your Rate
Once you find a property, secure your rate.
Jumbo rate locks can extend longer than conforming, giving you flexibility during escrow.
Step 6: Close on Your Home
Complete underwriting, appraisal, and final verification.
Typical timeline: 30-45 days—same as conforming when documentation is ready.
Begin your application → or schedule a call to discuss your options.
What Jumbo Loan Types Are Available?
Traditional jumbo: Full docs, strong credit, best rates. Fixed or adjustable. Straightforward if your income is clean.
Portfolio jumbo: Flexible underwriting. Unique properties OK. Lender keeps the loan. More wiggle room on guidelines.
Asset-based: Qualify on assets, not income. Ideal for retirees with investment portfolios. See asset depletion loans.
Bank statement: Self-employed? Use 12-24 months of deposits instead of tax returns. Slightly higher rates but much easier qualification. See bank statement loans.
What Are Common Jumbo Loan Myths?
“Jumbo loans are harder to get” More docs required, yes. But approval rates are high if you meet the requirements. The process isn’t harder—just more thorough.
“Jumbo rates are much higher” Not anymore. Rates are now comparable to conforming—sometimes lower for strong borrowers.
“You need 20% down” Many lenders accept 10-15% down. Some portfolio lenders go even lower with compensating factors.
“It takes forever to close” 30-45 days, same as conforming. Preparation matters more than loan type.
How Do California Regions Affect Jumbo Requirements?
High-Cost Counties ($1,249,125 limit)
Properties above $1,249,125 require jumbo financing in: Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Diego, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sonoma, and Ventura Counties.
Standard Counties ($832,750 limit)
All other California counties trigger jumbo above $832,750.
Regional Market Notes
San Francisco: Requires jumbo for most single-family purchases. Median prices well above limits.
Los Angeles: Luxury markets from Malibu to Beverly Hills frequently exceed $2M+.
Orange County: Coastal communities like Newport Beach and Laguna Beach regularly require $2M+ jumbo financing.
San Diego: Premium areas like La Jolla, Del Mar, and Rancho Santa Fe need multi-million dollar jumbo loans.
Bay Area: Palo Alto, Los Altos, Atherton—good luck finding anything under $1.5M.
Why Work with Jumbo Loan Specialists?
40+ years of experience – We know which lenders handle self-employed best. Which ones love unique properties. Which ones actually close on time.
California market expertise – Luxury appraisals here are tricky. Lenders need California experience. We understand these markets.
Relationship pricing – Longstanding lender relationships mean better rates. We leverage 40 years of connections.
Portfolio access – Exclusive lenders most brokers never hear about. Programs for situations banks decline.
Should You Get a Jumbo Loan?
California’s luxury home market isn’t like anywhere else. $2M homes are normal in coastal areas.
Jumbo mortgages need specialists who understand:
- California market cycles
- Luxury appraisal challenges
- High-net-worth borrower needs
- Investment property strategies
With 40+ years of experience, we have the lenders and programs to make it happen.
Whether it’s your dream home or investment property number five—no guesswork, just proven expertise and real relationships.
Call (510) 589-4096 to discuss your jumbo loan needs or view all purchase loan programs.
Explore More Purchase Options
Not sure if a jumbo loan fits your situation? Compare our other purchase loan programs:
- Conforming loans – Under $1.25M, lowest rates
- FHA loans – Low down payment options
- VA loans – Zero down for veterans
- Bank statement loans – Self-employed friendly
