What is a Jumbo Loan and how do I qualify? #realestate #mortgagetips #bayarearealestate

Added: 2026-06-02

[00:00:00]You might hear the words jumbo loan and immediately think, "Oh no, that sounds complicated, rare, and intimidating."

[00:00:07]But it's really nothing to fear. A jumbo loan simply means the loan amount exceeds conforming loan limits. And because home prices vary across the country, conforming loan limits also vary based on the cost of living in a particular area. For instance, the conforming loan limit is higher in Santa Cruz and Santa Clara counties. So, here are a few things buyers should know about jumbo loans. Credit matters more.

[00:00:31]Some jumbo loan programs allow scores around 700, while larger loan amounts or more complex scenarios may require even higher scores. Reserves are important.

[00:00:43]Lenders often want to see additional assets remaining after closing. Reserve requirements can range from 6 to 24 months of mortgage payments depending on the loan size. Down payment requirements vary. Many buyers assume jumbo loans always require 20% down, but that's not always the case. I have a program that allows for 10% down depending on the borrower's qualifications.

[00:01:06]Income documentation becomes more detailed. This is especially important for self-employed borrowers. Tax returns, business income, assets, and overall financial strength are all clearly and carefully reviewed. Debt to income requirements are usually stricter. Jumbo underwriting tends to be more conservative than standard conforming financing. While that can sound intimidating, the goal is to help ensure borrowers are comfortably able to repay the loan. The good news, jumbo financing can absolutely be manageable with proper planning and preparation.

[00:01:40]Getting preapproved early helps buyers understand their options, identify potential obstacles ahead of time, and position themselves for success. So contact me today. I'm happy to help.