California Jumbo Loans
Finance Luxury Homes Above $766,550

A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). For most California counties, the 2024 conforming limit is $766,550 for single-family homes. Higher-cost areas like Los Angeles, San Francisco, and Orange County allow high-balance conforming loans up to $1,149,825 before requiring a jumbo. If your loan exceeds the applicable limit for your county, you need a jumbo loan. Jumbo loans cannot be sold to Fannie Mae or Freddie Mac, so lenders hold them on their own balance sheets and apply their own underwriting standards.

Most jumbo lenders require a minimum 700 credit score, with 720–740 needed for competitive rates. Borrowers with 760+ often qualify for rate discounts of 0.125–0.25%. Unlike FHA loans, there are no government-backed jumbo programs, so lenders price risk directly into the rate and down payment requirements.

Standard jumbo loans typically go up to $3M–$4M through most lenders. Super jumbo loans — those above $3M — are available through private banks and portfolio lenders but require higher down payments (often 20–30%), very strong credit (740+), and substantial liquid reserves. Some California lenders offer jumbo loans up to $10M for exceptionally qualified borrowers.

Jumbo lenders typically require 6–12 months of mortgage payments (PITI — principal, interest, taxes, and insurance) in liquid reserves after closing. For super jumbo loans over $2M, reserve requirements may be 12–24 months. Retirement accounts typically count at 60–70% of their balance toward reserve requirements.

Yes. Many California jumbo lenders offer bank statement programs for self-employed borrowers, using 12–24 months of business or personal bank statements to document income instead of tax returns. Rates for bank statement jumbo loans are typically 0.5–0.75% higher than full-documentation options. Some lenders also offer asset depletion programs for high-net-worth borrowers with significant investment accounts.

Historically jumbo rates were 0.25–0.5% higher than conforming rates. In the current market this spread has compressed and jumbo rates are often within 0.125–0.25% of conforming rates for well-qualified borrowers. The rate difference is smaller because jumbo borrowers tend to have higher credit scores and stronger financials, reducing lender risk.