California Jumbo Loan Highlights and Requirements
A jumbo loan is one that’s worth more than the conforming loan limit in your area.
This type of loan is usually needed if you want to buy a high-value property.
Jumbo loans typically have a higher interest rate than conforming loans, but they can be easier to qualify for.
Requirements for a jumbo loan in California
Jumbo home loans offer more flexibility than a traditional conventional loan, especially if you have significant amount of liquid assets.
You could qualify for a jumbo loan even with a high debt-to-income ratio, and a credit score as low as 600.
You can make a 10% down payment without having to pay for mortgage insurance, and if you are self employed you can qualify without having to provide your tax returns.
In 2022: A loan is considered a jumbo loan when the loan amount is over $647,500 depending on the county. Some counties may have a higher loan limit. For example, Los Angeles – a loan is considered jumbo when a loan amount is over $970,800 and for San Diego $879,750.
2023 UPDATE: Starting Jan 1, 2023, a loan above $715,000 will be considered jumbo.
You can checkout the limit for your county here.
Highlights of a jumbo loan:
- Minimum of a 10% down payment (depending on credit score)
- Don’t need to pay mortgage insurance
- Minimum credit score is 600 (this is our requirements, other lenders may have different rules)
- Interest rates are higher than a traditional loan
- Qualify without having to provide tax returns
- Use to purchase a primary residence, second home, or an investment property
- Interest Only and 40 year mortgage options available
*Reserves usually required
Check out NonQm Loan Requirements for more information.
The Best Jumbo Loan is:
The best one is the VA jumbo loan. This loan is limited to veterans. It’s considered the best because a down payment isn’t required and the guidelines to qualify are lenient compared to the other programs.
Highlights of a VA jumbo loan:
- Easy to qualify for
- No down payment required
- No mortgage insurance
- Interest rate will be higher than a non-jumbo
- Debt to income ratio can be as high as 55%
Credit score requirements for a VA Jumbo:
Note: These credit score minimum is what we offer here at Coole Home. Other lenders may have different score requirements.
- A $648,000 to $975,000 jumbo loan requires a 620 credit score.
- $976,000 and above requires at least a 630 credit score.
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