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What Is A Jumbo Loan
A jumbo loan in California is a type of mortgage designed for properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you're looking to finance a high-value home, especially in California's competitive real estate market, here's what you should know about jumbo loans.
2024 Conforming Loan Limits in California
For most counties in California, the 2024 conforming loan limit is $766,550.
In high-cost areas like Los Angeles and San Francisco, the limit rises to $1,149,825.
Any mortgage exceeding these limits is classified as a jumbo loan.
What Is a Jumbo Loan?
A jumbo loan is used for financing properties that exceed the conforming loan limits. Due to the larger loan amounts, jumbo loans carry more risk for lenders, leading to stricter approval criteria and higher costs for borrowers.
Key Jumbo Loan Requirements in California:
Credit Score: A score of 720 or higher is typically required by most lenders.
Down Payment: Expect to provide a down payment of 10% to 20% or more.
Assets: Lenders will look for sufficient liquid assets or savings to cover at least one year of mortgage payments.
Documentation: You’ll need to provide proof of income, tax returns, bank statements, and details of your assets and debts.
Appraisal: The property will need to be appraised to confirm its value.
If you’re considering a jumbo loan in California, understanding these requirements can help you navigate the mortgage process and prepare for the higher costs involved. Whether you're buying a luxury home or a high-priced property in a competitive area, a jumbo loan could be the right solution.
Benefits of A Jumbo Loan
Jumbo loans have several benefits, including:
Higher loan limits: Jumbo loans allow borrowers to access more funds than standard loans. In 2024, the conforming loan limit for single-family homes in most of the U.S. is $766,550, but can be as high as $1,149,825 in some places.
Flexible terms: Jumbo loans offer flexible terms, including the option to borrow varying amounts for different property types.
Rate options: Borrowers can choose from fixed or adjustable rates to suit their budget.
Versatile use: Jumbo loans can be used to finance a main home, investment property, or vacation home.
Competitive interest rates: Jumbo loans can offer competitive interest rates for financing expensive homes.
Consolidate home financing: Jumbo loans can consolidate home financing under one loan product.
Contact Me For More Details
Contact Me For More Details
Alvin Newton
Residential Mortgage Loan Originator
NMLS #2222360 DRE #01858045
619-987-6987 Alvin@AlvinNewton.com
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Alvin Newton: NMLS #2222360 DRE #01858045
Moose Mau: NMLS #411962 DRE #02084078
C2 Financial Corportation: NMLS #135622 DRE #01821025
Visit the C2 Financial Corporation website
Visit the NMLS Consumer Access website
This licensee is performing acts for which a real estate license mortgage broker license, mortgage lender license, mortgage lending license, mortgage loan originator license, mortgage license is required. C2 Financial Corporation is licensed by the California Department of Real Estate, Broker # 01821025, Alabama State Banking Department, Broker # 23303, Arizona Department of Financial Institutions, Broker # 919209, Arkansas Securities Department, ASD# 129945, Colorado Division of Real Estate, NMLS# 135622, Florida Office of Financial Regulations, OFR# MBR3519, Hawaii Department of Financial Institutions, Broker# HI-135622, Idaho Department of Finance, Broker license # MBL-9475 Michigan Department of Insurance and Financial Services, DIFS# FL0023565, SR0023566, Mississippi Department of Banking and Consumer Finance, New Mexico Financial Institutions Division, Oklahoma Department of Consumer Credit, license# MB014489, Oregon Division of Finance, DFR# ML-4917, South Carolina Department of Consumer Affairs; NMLS# 135622.
Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by borrower. Loan is only approved when lender has issued approval in writing and is subject to the Lender conditions. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender. The services referred to herein are not available to persons located outside the state of AL, AR, AZ, CA, CO, FL, HI, ID, MI, MS, NM, OK, OR, SC.
C2 Financial Corporation is approved to originate VA and FHA loans, and has the ability to broker such loans to VA and FHA approved lenders. C2 Financial Corporation is not acting on behalf of or at the direction of HUD/FHA or the VA.
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