A California jumbo loan is one that exceeds the maximum conforming loan limits used by Freddie Mac and Fannie Mae (the government-sponsored enterprises that purchase mortgages from lenders). California jumbo home loans offer a higher level of financing than “traditional” conforming loans. So they’re often used by borrowers in higher-priced real estate markets, like the San Francisco Bay Area.
Contact Bridgepoint Funding today to get a rate quote for a jumbo loan, or learn more below.
What Is a California Jumbo Loan?
As mentioned above, a jumbo loan is one that exceeds the size restrictions used by Freddie Mac and Fannie Mae. They are also referred to as non-conforming loans because they do not meet or “conform” to the GSE size limits.
Conforming loan limits vary by county and are reviewed annually. Federal housing officials will sometimes raise the limits (from one year to the next) in order to keep pace with rising home prices. This is typically done on a county-by-county basis, since home-price appreciation varies by region.
Elsewhere on our website, you’ll find a full list of conforming limits for every county in California. Anything that exceeds these caps is considered a jumbo loan.
As with their smaller conforming counterparts, California jumbo mortgages are available with both fixed and adjustable rates. So you have options, in terms of the rate structure. Their are pros and cons associated with both of these options, as explained in this article.
Jumbo home loans have a higher level of risk, simply because there’s a larger amount of money being loaned. As a result, some mortgage lenders impose stricter criteria for borrowers seeking these non-conforming loans. This might include a higher credit score and larger down payment.
Do you have questions about qualifying for a jumbo loan in California? Give us a call. We can help you choose the right type of mortgage product for your particular situation.