Jumbo Loan California

What is a Jumbo Loan in California?

California real estate is expensive. There’s no getting around the fact that parts of the state are considered unaffordable for anyone but cash buyers. Fannie Mae and Freddie Mac mortgages are insufficient to cover the purchase price of homes in many parts of California.

If you’re wondering, “what is the jumbo loan in California?” you’re not alone. At Capstone Direct, we’re proud to educate our clients on jumbo loans. 

Jumbo loans are conventional mortgage loans that exceed the conforming size limits of other mortgages. The limits vary by county, but they are there to enable you to buy in the Golden State. A California jumbo loan empowers you to access real estate in high-cost regions, such as Los Angeles, Napa, and San Francisco.

Any loan that exceeds $970,800 is a jumbo loan in California. Individual counties, such as San Joaquin, will have lower limits for what is considered a jumbo loan.

With Capstone Direct, you can access a team of experts who can support you in finding the mortgage that allows you to make your home-buying dreams a reality.


Why Get a Jumbo Loan?

Jumbo loans enable you to take out an oversized mortgage at lower rates. The jumbo loan limit in California for 2022 means that many neighborhoods throughout the state would require a jumbo mortgage to afford them.

If you’re wondering whether a jumbo mortgage in California is for you, here are some of the reasons.

Higher Limits

The main advantage of the California jumbo loan limit is that you can borrow far more money than you could with a conventional mortgage. Real estate in many areas across the Golden State is costly, so you need to be able to borrow higher amounts.

This loan frees you from saving up vast amounts of money to afford the home of your dreams. Now there’s no need to wipe out your savings if you take out a jumbo loan.

Loan Variation

Unlike some loan programs in the U.S., a jumbo loan doesn’t lock you into a particular type of mortgage. You can combine a jumbo loan with a fixed or adjustable-rate mortgage.

You also have flexibility regarding loan terms that you would not get with some of the other available loan programs.

Lower Down Payment

A jumbo loan may allow you to enjoy a lower down payment. Some lenders may let you put down as little as 10%.

However, to take advantage of the higher jumbo loan amount in California, you need to be aware that lenders are free to require whatever down payment they want. Some lenders may require a down payment as high as 20%.


California Jumbo Loan Requirements

Now that you have the answer to “what is a jumbo mortgage in California?” what do you need to know about qualifying for one? The team at Capstone Direct can guide you through everything that goes into determining eligibility.

The primary loan requirements include:

  • Down Payment – You can put down as little as 10% for your down payment, but you should aim to put down 20% or more to get the best rates. While this may not be possible for everybody, saving extra can benefit you long-term.
  • Credit Score – Your FICO score can be as low as 680 to qualify with many lenders. While bolstering your credit score is beneficial, if your credit score is less than stellar and you want to move now, it is possible with a jumbo loan in California.
  • Flexibility – Unlike many of the assistance programs offered by the state government, you can still qualify for a jumbo loan if you are purchasing a second home or an investment property.
  • Mortgage Insurance – Mortgage insurance is required if your LTV is above 85% to 90%. It underlines the importance of saving for a larger down payment.
  • Debtto-Income Ratio – Your debt-to-income ratio must typically be 45% or less. If it is higher, you will need to first pay off some of your debt.

Capstone Direct can provide you with the latest information on what you need to qualify. Our team of experts is well-versed in the requirements to be eligible for this type of mortgage.




How Do You Apply for a Jumbo Loan in California?

Applying through an accredited lender like Capstone Direct is always beneficial because there are no middlemen to deal with. We have provided $2 billion in funding for ordinary hardworking Californians to purchase their dream homes.

So, what do you need to know about applying for a jumbo loan?

First, you will need to get your documents in order. This includes proof of income and any evidence of assets. Your lender will also run a credit check. Whether you’re eligible will depend on your credit score and how much you want to borrow.

Figuring out how much is a jumbo loan in California depends on how much you want to borrow at the time. The maximum jumbo loan amount in California is currently set at $3 million. You will need an excellent credit score to take out the highest amount.


What Are the Next Steps When You’re Ready to Apply?


Have you decided that you’re ready to apply for a jumbo loan?

You’ll need to ensure that you follow the proper process. Capstone Direct can support you in applying for one of these mortgages.

Step One – Apply for Pre-approval

Pre-approval is the easiest way to purchase a home because it involves the lender confirming how much they’re willing to lend to you before you bid. They’ll look at your income, assets, and credit to determine the maximum lending amount. The pre-approval process will also tell you what interest rate you can expect to pay.

Getting pre-approved will narrow your property search.

Step Two – Check Your Credit Score

Answer several questions about yourself and your financial situation. Give Capstone Direct permission to check your credit report.

Your credit report records your borrowing history and any outstanding amounts you still owe.

Step Three – Make Your Offer

After confirming your credit score and personal details, you will now know your budget. You can use this information to narrow your property search and work toward finding your dream house.

Why Capstone Direct?

Capstone Direct takes pride in offering the most affordable mortgages with the best rates to California homebuyers.

What differentiates us from other lenders is our commitment to the R.I.S.E philosophy that enables us to shine:

  • Relationships – Our priority is the relationships between our clients, business partners, and coworkers. We believe in forming solid relationships with others that we can rely on.
  • Integrity – Capstone Direct puts transparency, honesty, and trustworthiness at the forefront of what we do.
  • Service – We work closely with everyone who applies for a jumbo loan through us. Rely on us for fast communication times and streamlined communication. 
  • Expertise Our company has the expertise to guide you through the process of qualifying and receiving a jumbo loan to purchase your dream home.

Capstone Direct is the number one direct lender for California jumbo loans. If you have the home you want to purchase, get in touch with us. We’ll make the process simple.

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