In high-cost markets like Orange County, many buyers find themselves in jumbo loan territory — purchases that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.
What Is a Jumbo Loan?
Any loan that exceeds the conforming loan limit is a “jumbo” loan. In 2024:
- Standard conforming limit: $766,550
- High-cost areas (including most of OC and coastal CA): $1,149,825
If your loan amount exceeds the applicable limit for your county, you’re in jumbo territory.
How Jumbo Loans Differ
Jumbo loans are held by the lender (not sold to Fannie/Freddie), so each lender sets their own requirements. Generally:
Down payment: 10–20% minimum (some lenders require 20%) Credit score: 700–720 minimum; 760+ for best rates Reserves: 6–12 months PITI in liquid reserves required post-closing DTI: Typically capped at 43%, sometimes lower Documentation: More thorough than conforming loans
Jumbo Rates vs. Conforming
Historically, jumbo rates ran 0.25–0.75% higher than conforming rates. In recent years, this spread has narrowed — sometimes jumbo rates are actually lower than conforming, especially for well-qualified borrowers.
Super-Jumbo Loans
Loans above $2.5–3M are considered “super-jumbo” and have even stricter requirements, often requiring relationship banking, larger down payments, and extensive asset documentation.
Tips for Jumbo Buyers
- Get pre-approved early — Jumbo underwriting takes longer
- Don’t open new credit in the months before applying
- Organize your financial documents — Tax returns, brokerage statements, retirement accounts
- Consider ARM options — Jumbo borrowers often do well with 5/1 or 7/1 ARM products if they don’t plan to stay long
We work with multiple jumbo lenders and can find competitive options based on your specific profile.