California Jumbo Loan – Requirements and Get Pre-approved

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 5% 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.

You can checkout the limit for your county here.

Highlights of a jumbo loan:

• Minimum of a 5% 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
• You will be required to have reserves
• Interest Only and 40 year mortgage options available

Check out NonQm Loan Requirements for more information. A jumbo loan is considered a nonqm loan.

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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