Jumbo Home Loan
In much of Los Angeles, an ordinary house needs a jumbo loan. These sit above the conforming limit, are held differently by lenders, and are underwritten on the strength of the whole file.
In plain language
A jumbo loan exceeds the conforming loan limit for the county, so it cannot be sold to Fannie Mae or Freddie Mac. The lender keeps it or places it privately, which is why the standards are their own.
Expect a larger down payment, real reserves after closing, and full documentation. In return there is usually no mortgage insurance, even below 20 percent equity in some programmes.
This is probably you if
- You are buying above the conforming limit for your county, which in much of Southern California is an ordinary family home
- You have strong credit, documented income and money left after closing
- You are self employed with a complex return and need an underwriter who will actually read it
Three steps, in order
- We work out the real borrowing picture first, because a jumbo pre-approval that falls apart in underwriting costs you the house.
- We document income properly. For business owners this is the whole game, and it is where I spend most of my time.
- We place the file with a lender whose guidelines fit your situation, rather than sending it out and hoping.
What people ask me
Usually 10 to 20 percent, depending on the loan size and the lender. Some programmes go lower with compensating strength elsewhere in the file. It is worth asking rather than assuming 20.
They are documented more thoroughly, not necessarily harder. The difference is that there is no automated system to say yes; a person reads your file, so how it is presented genuinely matters.
Money you still have after the down payment and closing costs, usually measured in months of the new payment. Retirement accounts often count at a discount. We map this out before you make an offer.
Worth a look while you are here
Fixed Rate Mortgage
One payment, one rate, for the whole loan. The default for a reason.
Read moreFHA Home Loan
A lower bar to clear. Built for buyers with a smaller down payment or a shorter credit history.
Read moreVA Home Loan
No down payment, no monthly mortgage insurance. The strongest loan in the country, if you earned it.
Read moreThink Jumbo Home Loan might be the one
Let us confirm it against your actual numbers before you fall in love with a house.