Jumbo Loans

Jumbo Loans Available in California

There are currently some excellent options for jumbo home loans in California available right now that not commonly know. What is a jumbo loan in California? A jumbo loan is a loan amount over the conventional loan limit in California. Below are the conventional loan limits in some selected counties in California:

San Francisco: $625,500
Santa Clara: $625,500
Contra Costa: $625,500
Alameda: $625,500
Los Angeles: $625,500
Orange:$625,500
San Diego:$546,250
Much of the other inland counties of the state of California have conventional loan limits of $417,000.

So any loan amount above these loan limits falls into the category of a jumbo loan. Below are some of the guidelines for jumbo home loans in California:

Down payment is 20% in most cases (although there is a special 10% down jumbo loan for those with middle credit scores above 760)
Maximum debt-to-income ratio of 45%
720 minimum middle credit score
Available on single family homes or condos
Available for primary residences only
Available for both U.S. Citizens and permanent resident aliens
Borrower must have minimum cash reserves of 12 months of the total house payment in non-retirement funds (total house payment includes mortgage/property taxes/home insurance
Jumbo mortgage interest rates can be excellent, very close to what a borrower would get on a standard conventional mortgage loan.

So I hope this helps explain what is available with jumbo loans in California today.