jumbo loan california
Looking for a Jumbo Loan in California?
We Offer Competitive Loan Options
We offer jumbo mortgages in California of up to $3 million with the best rates and flexible terms. We’ll be here to help you through every step of the process as we are dedicated to making your home buying experience as hassle free and stress free as possible.
Offering Low Rates & Fast Closes Ensuring You Secure The Best Loan
jumbo loan california - We Can Help You Dream Big
A California jumbo loan is a loan that exceeds the standard lending limit of a conventional loan limit. For 2021 the conforming mortgage limit in California is 8,250 to 2,375(depending on your county) for a single-family home. Learn more about the 2021 Conforming Loan Limits for All California Counties here.
This financing option can require a down payment between 5-40% and allows up to $3,000,000 on a home which is a convenient benefit to many borrowers. Jumbo loan approval often requires an excellent credit score, low debt-to-income ratio, a certain amount of liquid assets, and cash reserves equal to or exceeding a set number of mortgage payments. Jumbo loans are the best option for high-end home buyers, and we are here to make the process easier and guide you along every step of the way.
Dennis has extensive experience specializing in California jumbo loans. For more information on Jumbo home loans in California contact Dennis today.
jumbo loan california
California Jumbo Loan Requirements
When you set your sights on a pricey home — or an average home in a pricey area — a traditional mortgage may not be enough. A jumbo loan in California could be the answer but you will need to have higher credit scores and larger cash reserves among other things in order to qualify.
Below are a few things to consider when looking to qualify:
High Income
Having a high income gives peace of mind to lenders. The higher the price of a property, the more vulnerable it is to market changes. As such, jumbo loans California come with a higher risk to lenders.
Good Credit (680+)
A drawback of a jumbo loan is the fact that they typically have stricter credit requirements than conforming mortgages. This is because these loans carry more risk for lenders since they’re not guaranteed by the government and are usually larger in value.
Documents
Make sure your documents are well organized and you have assets and investments that will support your income. You will need pay stubs, W-2’s, assets and in certain situations, tax returns. We can help determine the specific documents necessary and provide a complete application package.
Low debt-to-income ratio
Mortgage payment should be less than 38-45% of gross monthly income.
Mortgage payment reserves
The amount of savings or investments a buyer has left over after their down payment and closing costs. A good rule of thumb is to be at least 10% below your pre-approved loan number, but it varies according to individual credit scores and history.
- Loan amounts under $1 million often require 6-9 months of payment reserves.
- Loan amounts over $1 million often require 12+ months of payment reserves
- Retirement accounts are typically applied to this requirement
Options for Down Payment & Loan Limits
- 5% down payment (95% financing) Available up to $2,000,000 loan limits. 700 credit is required on all 95% options.
- 10% down payment (90% financing) Available up to $2,500,000 loan limits. 720 credit is required for loans exceeding $2mil. Buyers with lower credit scores (typically down to 660) can be eligible for lower loan amounts under $1,000,000
- 15% down payment (85% financing) Available up to $3,000,000 loan limits. 720 credit is required when financing over $2.5mil. Like above, lower credit scores can be approved for lower loan amounts.
- 20% down payment (80% financing) Available for loans over $3,000,000
jumbo loan california
The Jumbo Loan Process
There are many steps involved in the loan application process and its approval. You will need complete documentation. For the best guidance on California jumbo loans, contact us. Our experience can help you determine if you qualify for a jumbo loan and guide you through the approval process with confidence.
Here’s how our jumbo loan process works:
1. Consultation
2. Application
3. Qualification
4. Receive options based on your criteria
5. Compare mortgage interest rates and terms
6. Choose the offer that best fits your needs
At C2 Financial Corp, we know that buying a home is unique for everyone. Not everyone has the same needs, budgets, advantages, or options. If you need help financing your next home or want to discuss the best options for refinancing your existing mortgage, Dennis at C2 Financial Corp can help find the best California jumbo loan for your situation.
jumbo loan california
Benefits of a jumbo loan in california
California jumbo loans are designed to provide financial options for people who want to buy a home above the conforming loan limit. For 2021 the conforming mortgage limit in California is $548,250 to $822,375 (depending on your county) for a single-family home.
A jumbo loan in California offers competitive rates with additional benefits that can give you more purchasing power and leverage. Jumbo loans are ideal for home buyers looking for higher-priced luxury homes. These loans are designed to simplify home buying in pricey markets by covering the full cost of the loan, so there is no need for borrowers to drain their cash reserves. Benefits include:
- No mortgage insurance cost (PMI)
- Fixed and adjusted rate option available
- First-time homebuyers are eligible.
- Low down payment options
- Available to purchase or refinance
- Competitive Jumbo Loan Rates California
- Qualified Veterans and active-duty military have access to VA Jumbo Financing options
