What is a Jumbo Mortgage in California?

A jumbo mortgage is a mortgage loan that exceeds the level of principal eligible for purchase by the housing finance companies Fannie Mae and Freddie Mac. Many of our borrowers require a Jumbo Mortgage given the home prices in California Your loan is unique and you need specialized attention. Depending on the county limit, many borrowers’ options become very limited. Here at Trojan we understand this niche and have partnered with investors that understand this market. We have provided a county limit list for your convenience below.

When a loan amount is between $417,000 and $729,750, this is referred to as an Agency Jumbo or a Conforming Jumbo; there can be more restrictive qualifying guidelines. If your loan amount is larger than the max limit, you have a true Jumbo loan that requires private financing. At Trojan we understand high-net-worth individuals and families. Contact one of our highly skilled specialists today.

Should I apply for a jumbo loan?

If you find a house that suits your family and is under the county’s loan limit, you should definitely consider applying for a jumbo loan. Keep in mind the following:

• You will still need to supply your credit score and debt-to-income ratio in order to qualify for the loan.
• You will need to provide full income documentation.
• On a jumbo purchase, you may be required to supply a slightly larger down payment on the house, but this number will still be lower than if you applied for a conventional jumbo loan.
• For jumbo loans exceeding the county limits you should discuss your options with one of our loan specialists.

California Limits

• In 2011, if you require a mortgage loan higher than $417,000 backed by a single-family property located in California, you will generally require a jumbo mortgage. However, if the property is located in certain high-cost areas in California, you will need a jumbo mortgage for a loan amount higher than $729,750 on a single-family property
• Loan limits for each county are listed in the attached for your reference. Loan Limit Reference pdf