If you are applying for financing for the purchase of residential real estate, the amount of money you need will either be above or below the conforming loan limits which Fannie Mae and Freddie Mac have established.
In situations where you do not need to borrow more than those limits, you can apply for Conventional financing. Otherwise, you will require a jumbo mortgage in California.
To help you figure out whether a jumbo loan is necessary, let’s go over the conforming loan limits in California. The conventional loan limits depend on the county where you are purchasing a home.
Here are the baseline conventional loan limits in California for 2019:
These are the 2019 Los Angeles conforming loan limits:
Here are the 2019 San Francisco conforming loan limits:
The 2019 San Diego conventional loan limits are as follows:
During your California jumbo loan consultation, we can tell you the conforming loan limits for the county where you are shopping for a residence.
You may have heard it is more involved to apply for a jumbo loan than a conventional mortgage. This is true up to a point. The process is more rigorous, but is no more complex. These are the basic requirements:
Because jumbo loans involve lending larger sums, they are more risky to offer. This means that your credit score and DTI ratio will need to satisfy stricter requirements.
For the same reason, jumbo loans usually have higher down payment requirements than conventional loans. Instead of ranging up to around 20%, they may range as high as 30%. But if you have a competitive borrower profile overall, your down payment may not exceed what it would be for conventional loan.
Documenting cash reserves is also a requirement to qualify for a jumbo loan. You will need to show that you have 6 months to a year in reserves at the ready.
It is typical when applying for a jumbo loan to need two appraisals instead of one.
Before applying for a jumbo loan, it pays off to polish up your borrower profile as much as possible.
Jumbo loan mortgage rates may exceed those of conventional loans, but they also can be no higher if you know where to look.
No matter where you are shopping for a mortgage in California, we can connect you with jumbo financing with affordable interest rates. That way, you can move forward with your purchase confident that your mortgage will be affordable over the lifetime of your loan.
If you are ready to purchase one of California’s beautiful residential properties with a jumbo loan, please call (818) 995-1200 or email email@example.com to apply now. We look forward to connecting you with a competitive jumbo loan with excellent rates and terms.
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The Arch Corporation is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. This material is not from HUD or FHA and has not been approved by HUD or a government agency. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.