Jumbo Loans in California
Buying above $806,500 in most counties or $1,209,750 in expensive areas? You need a jumbo loan. And in California, that’s most decent homes.
Been doing this since ‘85. Forty years building relationships with jumbo lenders means I get rates and terms newer brokers can’t touch. Banks only offer their own programs. We shop 15+ jumbo specialists. Big difference.
Malibu, Palo Alto, Newport Beach, La Jolla – we’ve financed them all. Luxury deals need expertise, not guesswork.
Why Jumbo Loans Win
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. Save hundreds monthly.
Portfolio lenders – Lenders who keep loans in-house. More flexibility on income docs and unique properties.
Competitive rates – Often match or beat conforming rates. Sounds backwards but it’s true.
California Reality in 2025
Want a decent home in California? You’re probably going jumbo.
Conforming limits:
- Most counties: $806,500
- Expensive counties: $1,209,750
- Above these? Jumbo territory
Where jumbo’s required:
- SF Bay Area – Median over $1.5M
- LA Metro – Luxury starts at $1M+
- Orange County – Coastal homes above $2M
- San Diego – Premium neighborhoods
- Central Coast – Santa Barbara, Carmel, Monterey
Try finding a house in Palo Alto under $806k. Good luck with that.
Had a client last year shopping in Los Altos. Budget was $2.5M. Found a fixer-upper. Needed foundation work, roof replacement, kitchen reno. Bank passed. Too risky. Portfolio lender? Approved in 10 days. That’s jumbo lending when you know who to call.
Why We’re Different
40 years of jumbo relationships – We know 15+ jumbo specialists personally. Which one handles self-employed best? Which one loves unique properties? We know.
California focus – Luxury properties here aren’t like anywhere else. Appraisals are trickier. Lenders need California experience.
Better rates – Newer brokers get quoted sheet rates. We get relationship pricing. Decades of business earn that.
Portfolio access – Exclusive lenders most brokers never hear about. Bank statement loans, asset depletion, custom programs.
Jumbo Loan Types
Traditional jumbo – Full docs, strong credit, best rates. Fixed or adjustable. Straightforward if your income’s clean.
Portfolio jumbo – Flexible underwriting. Unique properties okay. Lender keeps the loan. More wiggle room.
Asset-based – Qualify on assets, not income. Retirees with portfolios love these. Streamlined approval.
Bank statement – Self-employed? Use 12 to 24 months of bank statements instead of tax returns. Slightly higher rates but way easier.
Requirements
Credit: 700+ preferred. We have 680+ options with strong compensating factors.
Down payment: 10 to 20% typical. Some portfolio lenders go lower. More down gets better rates.
DTI: Usually under 43%. Asset-heavy borrowers can go higher.
Reserves: 2 to 6 months of payments. More for investment properties.
Income: Employment history matters. Consistency counts.
Don’t fit the mold? That’s why you need a broker. We work with portfolio lenders and asset programs that bend where banks break.
Smart Strategies
Shop rates – Never take the first quote. Jumbo pricing varies wildly between lenders. We compare multiple.
Try portfolio lenders – Self-employed? Unusual property? Portfolio lenders flex where big banks won’t.
Use your assets – Big investment portfolio but messy income? Asset-based lending works.
Leverage relationships – Some private banks give killer terms to wealth management clients. We tap those networks.
Myths About Jumbo Loans
“Jumbo loans are harder” – More docs required, sure. But approval rates are high if you qualify.
“Jumbo rates cost more” – Often competitive with conforming. Sometimes lower. Seriously.
“Need 20% down” – Many accept 10%. Some portfolio lenders go lower.
“Takes forever to close” – 30 to 45 days, same as conforming. Preparation matters more than loan type.
California Counties and Jumbo Considerations
High-Cost Counties (Conforming limit: $1,209,750):
- Alameda, Contra Costa, Los Angeles, Marin, Orange, San Francisco, San Mateo, Santa Clara, Santa Cruz, Sonoma, Napa
Standard Counties (Conforming limit: $806,500):
- All other California counties
Investment Property Strategy: Many luxury California markets are perfect for jumbo investment property loans, especially vacation rentals in premium locations.
The Process
- Assess needs – Price range, down payment, timeline
- Match lenders – We identify best fits for your situation
- Shop rates – Submit to multiple, compare terms
- Gather docs – Tax returns, bank statements, investments
- Negotiate – Use relationships for best rates
- Close – 30 to 45 days, you’re done
35,000 jumbo loans close in California yearly. We’ve done hundreds personally. Process works.
Bottom Line
California’s luxury market isn’t like anywhere else. $2M homes are normal in coastal areas. You need specialists who understand:
- California market cycles
- Luxury appraisal challenges
- High-net-worth borrowers
- Investment strategies
We’ve been financing California luxury since ‘85. Whether it’s your dream home or investment property number five, we have the lenders and programs to make it happen. No guesswork. Just proven expertise and real relationships.