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New Product: California Super Jumbo Mortgages Up to $5 Million

Do you need a mortgage loan in California for up to $5 million, to purchase a high-end property? Bridgepoint Funding has got you covered!

Through our lender partnerships, we now have access to “super jumbo” mortgage loans that offer financing up to $5 million for qualified borrowers. This product offers an alternative to traditional banks and lenders, which usually don’t offer this level of financing.

As you might have guessed, these types of home loans typically require higher credit scores and a larger down payment. After all, the lender is making a much larger investment, when compared to a smaller conforming mortgage loan.

Even so, California super jumbo loans can be an excellent way to finance a luxury home purchase in the Golden State. Read on to learn all about them.

California Mortgage Loans Up to $5 Million

As a mortgage broker, we work with a variety of lenders and therefore have access to a broad range of home loan products and programs. Occasionally, our lending partners will introduce new products designed to help specific types of borrowers.

Because of this, we are now able to offer mortgage loans in California up to $5 million, for borrowers who meet certain qualification criteria. Within the lending industry, these types of loans are commonly referred to as “super jumbo” mortgage loans. (More on that below.)

So if you live in California, and you need financing in the $3 million – $5 million range, please contact our loan experts. We can review your current financial situation to determine if you’re qualified for a super jumbo mortgage. We can help you explore other financing options as well.

The ‘Super Jumbo’ Home Loan Explained

A super jumbo mortgage is a loan that far exceeds the Federal Housing Finance Agency’s (FHFA) conforming loan limits. The conforming loan limit is the maximum amount that Fannie Mae and Freddie Mac (the two government-sponsored enterprises that purchase mortgages) will guarantee.

In 2023, the conforming loan limit for most counties in the United States is $726,200. But it varies by county. In the San Francisco Bay Area, for example, the current conforming loan limit is close to $1.1 million. That’s because the Bay Area has a higher median home value than most parts of the U.S.

When a mortgage loan exceeds the conforming limit for a particular county, it’s referred to as a jumbo loan. When a person borrows a lot more than the limit, it can be referred to as a super jumbo mortgage loan. (The “super” label is an informal industry term, rather than an official definition.)

In California, super jumbo mortgages are typically used to finance the purchase of high-priced homes, such as luxury properties in expensive markets. They can also be used to refinance existing mortgages or purchase investment properties.

Basic Qualification Requirements

Generally speaking, bigger home loans tend to come with stricter requirements. And that makes sense, when you think about it. A lender making a $3 million mortgage loan bears more risk than one offering a $300,000 loan. Because of this, lenders tend to impose stricter qualification criteria for multimillion-dollar mortgage loans.

To qualify for a super jumbo mortgage loan in California up to $5 million, borrowers typically need to have the following credentials:

  • A strong credit history with a FICO credit score of 720 or higher
  • A loan-to-value (LTV) ratio no higher than 70%
  • A down payment of 30% or more
  • Sufficient income to manage the monthly payments and repay the debt

The minimum down payment that’s required can vary based on: (A) the amount being borrowed, (B) the purpose of the loan, and (C) the borrower’s credit score.

A borrower with a higher credit score may be allowed to make a smaller down payment, resulting in a higher loan-to-value ratio. On the other hand, a borrower with a lower score might have to put more money down, to keep the LTV ratio below a certain threshold.

If you have questions about obtaining a mortgage loan in California within the $3 million – $5 million range, the best thing you can do is contact our staff. We can answer any questions you have and tell you what requirements you might encounter, based on your particular situation.

There are a lot of different scenarios and variables when it comes to super jumbo mortgage loan. And we can’t cover them all in a single blog post. So please feel free to contact us with your questions!

Bank Statement and Asset Depletion Loans Available

In addition to traditional home purchase loans, we also have access to bank statement and asset depletion loans within the $3 million – $5 million size range. These products offer an attractive alternative for borrowers who might not qualify for a “standard” mortgage loan.

A bank statement loan is a type of mortgage that uses bank statements to verify income instead of tax returns. They’re often used by self-employed borrowers who may have difficulty qualifying for a traditional mortgage, because their income is not easily verifiable through tax returns. But they’re not limited to self-employed borrowers.

An asset depletion loan is a type of mortgage that allows borrowers to use their assets, such as savings or investments, to qualify for a loan instead of income from employment. Asset depletion loans can be used to purchase a primary residence, second home, or investment property.

Both of these products can be applied to multimillion-dollar home purchases in California. So they often have the “jumbo” label attached to them. For instance, you might encounter the term “jumbo bank statement loan” when researching this topic.

Have questions? Do you need a mortgage loan in the $3 million – $5 million range in California? If so, please contact our staff for a consultation. We can answer any questions you have and help you determine how much you might be able to borrow, based on your unique situation.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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