A jumbo loan is a mortgage that exceeds the FHFA conforming limit ($806,500 in standard California counties, $1,209,750 in high-cost counties). In a state where the median Bay Area home crosses $1.5M, jumbo isn't a niche product — it's how most Californians actually buy. Save Financial originates jumbo loans from $806,501 to $5M with multiple structural options.
How does a Jumbo Loan work?
| Loan amounts | From $806,501 (or $1,209,751 in high-cost CA counties) up to $5 million. Super-jumbo options available beyond on a case-by-case basis. |
| Down payment | As low as 10% with strong credit and reserves; 20% is standard. Higher loan amounts may require larger down payments. |
| Credit score | Typically 700+. Borrowers in the 740+ tier receive the best pricing. |
| DTI ratio | 43% standard; some programs allow up to 45% with significant reserves. |
| Reserves | Typically 6–12 months of PITI in liquid reserves required. |
| Structures | 30-year fixed, 15-year fixed, 5/6 ARM, 7/6 ARM, 10/6 ARM, and interest-only options. |
Who should consider this loan?
- Bay Area and Coastal Southern California buyers purchasing above the high-balance conforming limit.
- Move-up buyers using equity to scale into a larger primary residence.
- Second-home buyers in Lake Tahoe, Palm Springs, or Coastal California markets.
- High-income borrowers with significant assets who benefit from interest-only structures.
- Foreign nationals and ITIN borrowers (case-by-case).
Save Financial advantage
As a direct California mortgage lender shopping across 40+ wholesale and correspondent investors, we match your jumbo loan file to the program with the sharpest pricing and most flexible guidelines — not just the one our bank happens to sell.
Jumbo vs Conforming
| Jumbo | Conventional | |
|---|---|---|
| Loan amount | $806,501–$5M | Up to $806,500–$1.2M |
| Min credit | 700+ | 620 |
| Min down | 10% (strong files) | 3–5% |
| Reserves required | 6–12 months PITI | 0–2 months typical |
| Mortgage insurance | None typically | Required <20% down |
| Interest-only option | Yes | Rare |
Common questions about Jumbo Loans
What qualifies as a jumbo loan in California?
A jumbo loan is any mortgage that exceeds the county's applicable conforming loan limit. that limit is $806,500 for most California counties and $1,209,750 for high-cost counties including Los Angeles, Orange, San Francisco, San Mateo, Santa Clara, Alameda, Marin, Contra Costa, and San Diego. A $1,300,000 mortgage in Los Angeles is a jumbo loan; a $900,000 loan in Fresno is also a jumbo loan.
What is the minimum down payment for a jumbo loan in California?
Save Financial offers California jumbo loans with down payments as low as 10% for borrowers with 740+ FICO scores and sufficient reserves. The standard down payment is 20%. For loan amounts above $2 million, 25% down is typical. Down payment requirements scale with loan size and risk profile.
What is an interest-only jumbo loan?
An interest-only jumbo loan allows the borrower to pay only the interest portion of the mortgage for an initial period (typically 10 years), after which the loan amortizes over the remaining 20 years. Interest-only structures are popular with high-income California buyers who prefer to keep monthly payments lower and direct capital to investments, then refinance or sell before the amortization period begins.
How many months of reserves do I need for a jumbo loan?
Most jumbo lenders require 6–12 months of PITI (Principal, Interest, Taxes, Insurance) in liquid reserves. Higher loan amounts and lower down payments push reserve requirements higher. Retirement accounts can be counted at 60–70% of value. Save Financial works with multiple jumbo investors and can match borrowers to the most flexible reserve requirements for their file.
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