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.
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:
- - Credit Score: Generally 700 or higher
- - Debt-to-Income Ratio: Usually below 45%
- - Down Payment: Often 10% to 25%
- - Cash Reserves: 6 to 12 months of mortgage payments
Benefits of Jumbo Loans for Californians
- – Higher borrowing limits to match California's expensive real estate market
- – Competitive interest rates. Sometimes lower than conventional loans
- – Ability to finance high-end luxury properties
- – Flexible terms including interest-only options in some cases
- – Single loan solution for expensive homes and avoid the need for two mortgages
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
Speed Up the Process
- ● Gather copies of 2 months of account statements for all assets being used - savings, retirement, investment brokerage, money market, CDs, etc. .pdf format statements are preferred.
- ● Gather copies of tax returns for the last two years and most recent paystub or YTD P&L if self-employed.
- ● Prequalify with a licensed mortgage originator to confirm if you qualify.
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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.