California Jumbo Loans: Financing Luxury Homes in the Golden State

California's real estate market stands out for its high-value properties and competitive housing landscape. Jumbo loans play a crucial role in financing these premium homes, particularly in areas where property prices soar beyond conventional mortgage limits.

California home with a pool

In California, a jumbo loan typically refers to any mortgage exceeding $806,501 for most counties in 2025. However, this threshold can reach up to $1,209,750 in high-cost counties like San Francisco, Los Angeles, and San Diego. These loans cater to the unique needs of California's luxury real estate market, where home prices have appreciated significantly since 2010.

Any loan amount that is above the conforming county limit is deemed a non-conforming loan or jumbo loan. In the beautiful state of California many counties nearby the coast have higher jumbo limits than inland areas.


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Buy a Home in California using Jumbo Home Loans

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How Jumbo Loans Work in California

The underwriting process is very similar to a conventional conforming loans except the qualifying requirements are more strict for the increased risk. So the differences are not extreme or very tight unless you go to a local bank or credit union.

Eligibility Criteria for California Residents
Jumbo loans in California have stricter requirements compared to conventional mortgages:

Documentation Required

    Salaried Employees

  • – Recent pay stubs
  • – W-2 forms for the past two years
  • – Federal tax returns for the past two years
  • – Bank statements for the past two to three months

    Self-employed Individuals

  • – Personal and business tax returns for the past 2 to 3 years
  • – Profit and loss statements from a lic'd tax preparer
  • – Personal Balance sheet
  • – Bank statements for the past 2 months (personal and business)


Jumbo Loan Qualifying in California

Traditional banks and jumbo mortgage lenders scrutinize your income source(s) more due to the higher loan risk.

Income Verification Process

  • – Stable employment history
  • – Consistent income trends
  • – Tax returns (and P&L's for self-employed)
  • – Assets and investment accounts for 2-3 months

Lenders Prefer to See

  • – Strong cash flow
  • – Stable income sources
  • – Low debt ratios under 45
  • – Substantial liquid assets

Lenders may be concerned or decline your application if you have:

  • – Recent career changes
  • - Declining income from the prior year
  • - Strong reliance on large bonuses or commissions

Compare a Jumbo Loan vs. a Non-QM Loan

Guidelines Jumbo Non-QM Jumbo
Minimum Credit Scores 700 680
Down Payment as Low as 20% 10%1
Mortgage Insurance None None
Maximum Loan Limit $4,000,000 $10,000,000

1.  A down payment of 10 percent requires credit scores above 740, DTI ratios under 45, 9-12 months of reserves and a loan not over $3,000,000

Benefits of Jumbo Loans for Californians

 


Examples of Multi-Million Dollar California Home Closings

Scenario 1:
A tech executive in Palo Alto is looking to purchase a $3.5 million home
- Jumbo loan amount: $2.75 million (80% LTV)
- Down payment: $750,000 (20%)
- This loan allowed the buyer to finance a high-value property in Silicon Valley's competitive market.

Scenario 2:
A successful entrepreneur in Newport Beach under contract for a $5.3 million beachfront property
- Jumbo loan amount: $4 million (75% LTV)
- Down payment: $1.3 million (25%)
- The jumbo loan enabled the purchase of a luxury coastal home in one of Orange County's high-cost prestigious neighborhoods.

 

Major California cities and regions where jumbo financing is needed

- Los Angeles: Programs tailored for entertainment industry professionals in areas like Bel Air, Brentwood, Calabasas, Los Feliz, Hollywood Hills
- San Francisco: High-balance jumbo loans for tech executives in neighborhoods like Pacific Heights and Noe Valley
- Orange County: Luxury property financing in Irvine, Tustin, Newport Coast and Laguna Beach
- Riverside County: Luxury home lending in Corona, Murrieta, Temecula, Indian Wells and Palm Desert
- San Diego: Jumbo loans for oceanfront properties in Carlsbad, La Jolla and inland Rancho Bernardo, and Rancho Santa Fe
- Santa Barbara: Estate financing options in Montecito and Hope Ranch
- Sacramento: Large lot and custom home loans in El Dorado Hills and Granite Bay

You have numerous choices because we can offer varioust Jumbo loan programs subject to underwriting approval.
Other loan alternatives include Asset Based Mortgages, Self-Employed No Tax Returns, Short-term Bridge Loan, Loans for Vacation Homes.

Speed Up the Process

Still have questions? Check these answers

  • Is private mortgage insurance (PMI) required on jumbo loans over 80% LTV?

    No, PMI is typically not required on jumbo loans even with less than 20% down. However, many lenders will increase the interest rate much higher at 85 or 90 LTV than from 75 to 80 LTV.

  • Can I put 10% down on a jumbo loan in California?

    Yes, some programs allow as little as 10% down on jumbo loans up to $3 million.

  • Do California banks offer better jumbo loan terms than national bank lenders?

    Local banks like Wells Fargo Bank and Chase Bank often offer competitive jumbo loan programs nationally. However, their qualifying limits are stricter with lower LTV and DTI limits unlike a jumbo mortgage broker.


Disclosure: Minimum loan amount is $806,501 for residential jumbo loans. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.