California Jumbo Loans Without 20% Down?

Mortgage and Lending with Jumbo Loan Center


A mortgage is considered "Jumbo" when the loan amount exceeds the base conforming loan limit of $484,350 throughout most of the nation. However, most of California is considered a high-cost area and the conforming loan limits are higher - up to $726,525 in some locations like LA and San Francisco.  When Fannie Mae and Freddie Mac limits do not cover the full loan amount on high valued homes, the loan is referred to as a “Jumbo” mortgage. 

Many home buyers still assume a minimum of 20 percent is needed to secure Jumbo financing.  Some are not aware that jumbo financing programs are available today up to 95% financing for qualified buyers. And the best part is these programs do not require monthly mortgage insurance (PMI) costs.  The programs can be especially good for home buyers looking to purchase in the higher costs locations around Los Angles, San Fran, San Diego, San Jose, Sacramento, etc.  In the post below we will review the basic requirements, please contact us at with any questions. 

Borrowers can also read the complete  Jumbo mortgage guide here

  • 95% financing to $1,500,000 with no PMI with scores of 700+.  Choose from 1 single loan, or an 80/15 combo mortgage option.
  • NO PMI on 95% financing jumbo loans (saves hundreds per month)
  • Purchase with only 5% down payment - great for doctors, physicians, attorneys and other professionals that have sufficient income but lack a large 20% down payment.
  • Interest rates are nearly as low as most conventional loan options.
  • The 95% jumbo is for owner-occupied, purchase and rate term transactions. Financing is available for 1 Unit Single Family Residence, Attached or Detached Housing and warrantable condominiums.
  • Smaller non-jumbo loans can still be offered up to $484,350 ($726,525 for high-cost locations) with a minimum score of 620
  • Many attractive Jumbo refinance options for eliminating current mortgage insurance costs or converting from an adjustable rate to fixed rate loan.
  • NOTE -  ALL the requirements are for OWNER OCCUPIED homes only.  Other jumbo financing options available for vacation homes and investment properties. Most of these programs will require at least a 15% down payment. 

Please also note the following options for buyers that have 10% + down payment

  • 90% Loan to value:  Up to $3,000,000 with 720+ credit score.
  • 85% Loan to value: Up to $3,500,000 with 740+ credit score. 

There are a few good reasons why borrowers may want to put down less than 20%, even if they have a larger down payment: 

  • The pending sale of current residence – while the CA real estate market has seen drastic improvements, some homes make take longer to sell. If you are looking to move forward with a new purchase before your existing home sells, this may be a good option to make purchasing your new home possible.
  • Renovations, Home Improvements, etc – Many homes need updating; by only putting down 5%, you can save the rest of your money for needed remodeling, new furniture or other improvements.
  • Keep savings in higher yield investments – it's no secret the stock market has been on a stellar run over the last year. Sometimes it can make better financial sense to put less down on your house and keep your money working for you in higher yield investments. Consult your financial advisor to see what option works best for you.  

 Please connect us below to speak to an advisor about any of the options listed above.

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