The three we hear most: "Where does jumbo start?" Above $1,249,125 in high-cost CA counties. "Are rates higher?" Not anymore — often at parity with or below conforming in 2026. "What's the catch?" Reserves — 6–12 months of payments. Details below and on Requirements and Eligibility.
Limits & basics
What is a jumbo loan in California?
Any loan above your county's conforming limit — $1,249,125 in high-cost counties, $832,750 baseline. See Requirements.
What's the difference between jumbo and high-balance?
High-balance sits under the high-cost limit, Fannie/Freddie-backed, easier. Jumbo exceeds it, private, stricter. See Eligibility.
How big can a jumbo loan be?
Depends on the lender — commonly up to $2–3M, with some to $5M+ (super-jumbo). We match your amount to the right investor.
Are jumbo loans conventional?
Yes — they're conventional but non-conforming, since they exceed Fannie/Freddie limits and are held by private lenders.
Do I need a jumbo loan?
Only if your loan amount exceeds your county limit. Under it, you may qualify for easier high-balance conforming — always worth checking first.
Qualifying
What credit score do I need?
700+ typically, 720+ on larger loans, 740+ for best pricing. Some lenders go to 680 with compensating factors.
How much down?
10–20% typical (20% standard, avoids MI); some programs 5–10%; 25%+ for best pricing.
What DTI do I need?
~43% or lower typically (some to 45%). Below 36% earns better terms. Strong reserves add flexibility.
Can self-employed borrowers qualify?
Yes — full-doc, or bank statement / P&L loans using cash flow instead of tax returns.
Can I qualify off assets?
Yes — asset depletion lets high-net-worth buyers qualify off account balances when income is low.
Rates, PMI & reserves
Are jumbo rates higher than conforming?
Not necessarily anymore — the premium narrowed/inverted since 2024. Strong profiles often match or beat conforming. See Rates.
Do jumbo loans require reserves?
Yes — usually 6–12 months of payments after down and closing. Retirement/investment accounts often count.
Can I avoid PMI?
Yes — no PMI at 20% down, and no-PMI structures below 20% via single or piggyback loans.
Are closing costs higher?
Higher in absolute dollars (often 2–4% of the loan) since the loan is larger, but a similar percentage to other loans.
Can I get a jumbo ARM?
Yes — jumbo ARMs (like 5/6 or 7/6) are common and sometimes price below fixed, useful if you won't hold the loan long.
Process & property
How long does it take to close?
About 30–45 days. More documentation and two appraisals above $1M can add a little time. See Process.
Why two appraisals?
Above ~$1M, lenders confirm value with two appraisals since they hold the loan and high-end comps are scarce.
Second home or investment?
Yes — jumbo covers primary, second homes, and investment (larger down/reserves for the latter two).
Is the process very different?
No — same steps, just more documentation and reserve verification. A broker manages it all.
What if I'm not a fit for full-doc jumbo?
We route you to a non-QM path (bank statement, P&L, asset-based, DSCR) that fits.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.