Super Jumbo Home Loan

super jumbo loan california

What is a Super Jumbo Loan?

For a certain segment of home buyers, super jumbo mortgages are the financing product used to purchase or refinance a luxury home. Homes for this type of mortgage product tend to be in very desirable locations like those with hillside city views, on the beach, or in gated communities.

Affluent areas in California, Florida and throughout the country are ideal for super jumbo financing. These loans are commonly over $1 million and can reach in excess of $10 million in places like Beverly Hills, San Francisco, and Newport Beach in California, Naples, or Miami. Inquire today to see if you meet the requirements for a super jumbo home loan.

Super Jumbo Mortgage Down Payments

There's the popular 10-percent down program up to $2.5 million, 5 percent down up to $1.5 million, or 30-35% down on a $5 million home, each without mortgage insurance. When stuctured properly, a first and second mortgage combo can help borrowers dramatically reduce their monthly payment by thousands per year versus getting one single loan.

Super Jumbo Loan California

While these loan products are available in all 50 states, high net worth individuals are more likely to get a super jumbo loan in California since greater than 25% of the homes in the state have an appraised value over one million dollars. This is especially true in Newport Beach, La Jolla, San Francisco, West Los Angeles and adjacent coastal beach cities.

Sales of properties worth between $750,000 and $1 million are up 38.7 percent over a year ago; $1 million-plus property sales are up 25.7 percent, based on data from the National Association of Realtors.

Some of these larger-sized loans require 10-30% down on homes priced from $1 mllion to $4 million. One great alternative available to borrowers is that they are able to still be approved by collateralizing liquid assets or using an assst depletion. This is typically done by pledging one's portfolio of stocks and bonds although there is no transfer of ownership.

As of 10/3/2019, popular jumbo mortgage programs include:
5-percent down up to $1,500,000

10-percent down up to $3,000,000

30-40% down on homes priced from $3.5 to $5 Million

Also available in Colorado, Florida, Texas.

Borrowers are subject to credit and underwriting approval. Not all borrowers will be approved for financing. Interest rates and APR will vary according to the borrower's mid-FICO score, debt payment history, type of loan (purchase or refinance), and loan to value.

Since lenders are taking on more risk, the underwriting process is a lot stricter. Therefore, borrowers should have impeccable credit (over 720), although it's not the only factor for getting an approval or rejection.

It is not uncommon for the typical super jumbo borrower to be employed with a successful corporation as the president, CEO, COO, CTO, or a high-ranking executive within the company.

It's very important that you deal with a loan expert who has years of knowledge through experience (i.e. closed transactions) in dealing with high-end financing. It is essential component to finding the best mortgage options suitable for your needs. Check with a jumbo mortgage lender now!

get prequalified today