First-time home buyers in California often look for ways to make a low down payment…
California Super Jumbo Mortgage Loans Up to $4 Million, Now Available
California super jumbo mortgage loans are back, and we have them. Eligible borrowers can now qualify for financing up to $4 million.
As a mortgage broker, Bridgepoint Funding offers a wide range of mortgage loan options. Today, we will talk about one of those options – a specialty loan known as the “super jumbo.”
This mortgage product is ideal for California home buyers who need to borrow more than $1 million. In fact, we are now able to offer loans for more than $3 million, which is rare. So let’s talk about the super jumbo mortgage loan, and how it can help borrowers purchasing a high-end property.
What Is a Super Jumbo Mortgage Loan?
When it comes to the amount being borrowed, mortgage loans in California can be classified as either conforming or jumbo.
- A conforming loan meets or conforms to the size requirements used by Fannie Mae and Freddie Mac. These requirements are handed down from the Federal Housing Finance Agency.
- A jumbo mortgage, on the other hand, is one that exceeds the conforming limit for the county in which the home is located.
Conforming loan limits vary by county because they are based on median home prices. More expensive real estate markets tend to have higher loan limits, and vice versa. In 2023, California conforming loan limits range from $726,200 – $1,089,300, depending on the county.
But what about a super jumbo mortgage loan? There is no precise definition for this term. As explained above, a “regular” jumbo loan is one that exceeds the conforming size limit for a particular county. But a “super” jumbo mortgage is a general term that typically refers to any home loan for more than $1 million.
In California’s more expensive real estate markets, like the San Francisco Bay Area, a super jumbo mortgage could be considered anything above $1.1 million. That’s because the current conforming loan limit for the Bay Area is $1,089,300.
Good News: Mortgage Loans Up to $4 Million
As a mortgage broker, we work with a variety of lenders that offer many different loan programs and products. Because of this, we are able to offer products that other lenders might not have access to. And that includes the California super jumbo mortgage loan.
Currently, in 2023, we are able to offer super jumbo products in amounts up to $4 million. These days, a home loan over $3 million is a rare thing. So we are pleased to offer these larger mortgage options to borrowers. These unique products allow us to serve a broader audience, particularly those who are buying homes in expensive real estate markets with multimillion-dollar price tags.
Basic Requirements for Borrowers
As you probably could have guessed, super jumbo mortgage loans tend to have stricter qualification criteria when compared to smaller loans. The reasons are somewhat obvious. A multimillion-dollar mortgage loan brings more risk to the lenders who offer them. As a result, lenders want to ensure they are making sound loans to well-qualified borrowers.
The California super jumbo mortgage loans we offer tend to require a credit score of 680 or higher. Additionally, the maximum loan-to-value (LTV) ratio for these products is lower than what you would find with a smaller conventional mortgage. For a super jumbo mortgage loan in California, the maximum LTV ratio tends to be set at 60%.
The interest rates tend to be higher as well, when compared to a smaller conforming loan. The reason for this has to do with the higher level of risk. But for those borrowers who need access to multimillion-dollar financing, the benefits of a super jumbo product outweigh the downside of a higher rate.
These loans are only available for specific types of properties. For instance, you could use a super jumbo mortgage to buy a detached single-family residence, but not a condo. At least not at this time.
In some cases, borrowers in California can qualify for super jumbo mortgage financing by providing their stated income and assets. This means they don’t necessarily have to provide tax returns. Again, this is a unique product that offers big benefits to potential borrowers. It’s the kind of mortgage loan option you can’t get from just any lender.
Ready to Get Started?
Do you have questions about super jumbo mortgage loans in California? Would you like to apply or find out how much you might be able to borrow? We are here to help!
Located in the Bay Area, Bridgepoint Funding offers many different financing options — including conforming, jumbo, and super jumbo loans. We also offer government-backed mortgage options like FHA and VA. Regardless of your borrowing situation, we can help you find the right type of product for your financing needs.