Where conforming ends, the real underwriting begins.
A jumbo loan is any mortgage above the county conforming limit. It is priced by the investor rather than by Fannie Mae or Freddie Mac, and it is underwritten on the whole file: income, assets, reserves and the property. Troy has placed jumbo loans across Los Angeles and Orange County for two decades.
- Loan amount
- Above the county conforming or high-balance limit
- Terms
- Fixed-rate and adjustable-rate options
- Documentation
- Full documentation, bank statements or asset depletion, by program
- Reserves
- Typically more months of reserves than an agency loan
How it works
Loan limits for Fannie Mae and Freddie Mac are set by county each year. Above that line, a mortgage is jumbo: it is not eligible for sale to the agencies, so it is underwritten and priced by the investor who will hold it. Jumbo guidelines tend to ask for a larger down payment, more reserves after closing and a closer reading of income.
That closer reading is where an experienced broker earns the fee. Jumbo investors differ widely in how they treat bonus and commission income, self-employment, restricted stock, trust income and assets held in retirement accounts. Troy knows which investor reads a given file favorably and places it there.
For higher-value homes in Long Beach, Naples, Belmont Shore, Seal Beach, Rossmoor and the Palos Verdes Peninsula, he also checks whether a first mortgage at the high-balance limit paired with a second lien prices better than a single jumbo loan.
- Buyers of homes priced above the Los Angeles or Orange County loan limit
- Owners refinancing a jumbo loan into a better rate or term
- Borrowers with complex income: bonuses, commissions, equity compensation, business ownership
- Buyers who want to put less than 20 percent down on a higher-value home, where programs allow
- Borrowers with substantial assets who prefer asset-depletion qualifying
Not sure you fit? Ask. Troy tells people on the first call when a different program serves them better.
What to consider
Program details vary by investor and change over time. These are the questions that decide whether the loan is right for you; Troy confirms the specifics for your file.
Down payment and reserves
Jumbo programs typically ask for a larger down payment and several months of payments in reserve after closing. The exact figures depend on the investor and the loan amount.
Income documentation
Full documentation is standard, but bank-statement and asset-depletion jumbo programs exist for self-employed and asset-rich borrowers.
Two loans instead of one
A high-balance agency first mortgage plus a second lien can sometimes beat a single jumbo loan on total cost. Troy prices both.
Appraisal
Higher-value homes may require two appraisals or a field review. Troy orders what the program needs and reads the reports with you.
The process
From the first conversation to funding, you deal with Troy.
Size and structure
Troy checks the loan amount against the county limit and decides whether one jumbo loan or a first-plus-second structure prices better.
Match the investor
Your income and asset picture is matched to the jumbo investor whose guidelines read it best.
Underwrite
Full review by Troy, appraisal, conditions cleared personally.
Fund
Signing is scheduled around you. Troy coordinates escrow so the loan funds on the date you planned.
Questions people ask
General answers. The answer for your file comes from a conversation with Troy, not from a web page.
What makes a loan jumbo?
Any loan amount above the conforming limit set for the property's county. Los Angeles and Orange County have high-balance limits well above the national baseline, so the jumbo line here is higher than in most of the country.
Do jumbo loans need a bigger down payment?
Often, yes, though some programs allow lower down payments at higher loan amounts. Troy will tell you the loan-to-value limit for the program that fits and whether a second lien could keep the first loan under the agency limit.
Are jumbo rates higher than conforming?
Not always. Jumbo pricing is set by the investor and at times competes with or beats agency pricing for strong files. Troy prices both for you.
Can I get a jumbo loan if I am self-employed?
Yes. Bank-statement and asset-depletion jumbo programs exist for self-employed borrowers whose tax returns understate their income.
Related programs
Often considered alongside this one. Troy prices the alternatives so you can see them side by side.
Home purchase
Conventional, FHA, VA, jumbo and down-payment assistance, with a pre-approval that has been underwritten before the letter goes out.
Conventional
Fannie Mae and Freddie Mac financing with agency pricing for documented income, including high-balance for Los Angeles County.
Asset depletion
Qualify on liquid assets when the income on paper does not tell the story.
Bank statement
Self-employed income documented with 12 or 24 months of deposits instead of tax returns.
Talk it through with Troy.
No obligation and no credit pull on the first call. Tell him what you’re trying to do and he’ll tell you whether jumbo financing is the right tool, and what it would cost.