Shopping for a home in San Marino and hearing the term “jumbo loan” everywhere? You are not alone. In this high‑value market, it is normal to bump into financing that sits above standard limits, which can feel confusing at first. In this guide, you will learn what counts as a jumbo in San Marino, how these loans work, what lenders expect, and how to prepare a strong application. Let’s dive in.
What counts as a jumbo in San Marino
A jumbo mortgage is any conventional loan with an original balance above the conforming loan limit set each year by the Federal Housing Finance Agency. Jumbos are non‑conforming, which means Fannie Mae and Freddie Mac will not purchase them.
Los Angeles County is typically aligned with the national baseline conforming limit, but that designation can change. Limits also vary by unit count from 1 to 4 units. Before you quote a number or set a budget, confirm the current year’s figures using the FHFA’s official conforming loan limits resource. You can review the latest county and unit limits on the FHFA website by checking the current conforming loan limits page.
Because single‑family prices in San Marino often sit well above standard limits, many purchases require jumbo financing or significant cash.
Jumbo basics: how these loans work
Jumbo loans are held or priced by banks, credit unions, mortgage banks, and private lenders that use their own underwriting standards. Since these loans are not sold to Fannie Mae or Freddie Mac, lenders take on more risk and usually apply tighter guidelines.
You will not find standard private mortgage insurance on most jumbo loans. Instead, pricing, down payment size, and cash reserve requirements help lenders manage risk. Rates are influenced by broader market factors and each lender’s appetite for jumbo loans at a given time.
Common requirements you can expect
Down payment and LTV
- Primary residence: Many lenders cap loan‑to‑value at about 80 percent, which is 20 percent down. Some allow 85 to 90 percent for very strong borrowers, usually with pricing adjustments.
- Second home: Maximum LTV is often lower, around 70 to 80 percent.
- Investment property: Expect the highest down payment requirements, often 25 to 30 percent or more.
- Mortgage insurance: Standard PMI is rarely available on jumbos, so lenders use down payments and other safeguards instead.
Credit, income, and DTI
- Credit scores: Best pricing typically goes to scores in the 720 to 760+ range, though minimums vary by lender.
- Debt‑to‑income ratio: Many lenders target about 43 percent, but some will allow up to roughly 50 percent when you show strong compensating factors like substantial liquid assets or a lower LTV.
- Documentation of debts: Be ready to verify all recurring obligations, including student loans, alimony, and any business debt.
Cash reserves
- Standard expectation: Many jumbo programs ask for 6 months of PITI in reserves for a primary residence.
- Larger or more complex loans: You may see 6 to 12 months, or more, especially for higher balances or investment properties.
- What counts as reserves: Liquid accounts, brokerage assets, and certain retirement funds (subject to conditions). Lenders will review recent statements to verify.
Documentation options and what to gather
- Employed borrowers: 2 years of tax returns, W‑2s, recent pay stubs, employer verification, and 2 to 3 months of bank statements.
- Self‑employed borrowers: Full documentation often includes 2 years of personal and business tax returns, K‑1s if applicable, year‑to‑date profit and loss, and business and personal bank statements. Some lenders offer bank‑statement or asset‑depletion programs through non‑QM products.
- Gift funds: Often allowed for primary residences with proper gift letters and source documentation.
Rates and loan choices
Jumbo pricing reflects the broader rate market and lender‑specific factors. Your rate is affected by your loan amount, LTV, credit score, documentation type, occupancy, property type, and program selection, such as a 30‑year fixed or an ARM.
In some market windows, jumbo rates can be similar to or even better than conforming rates. This is why it pays to compare quotes. For a smart approach to comparing offers and understanding Loan Estimates, review the CFPB’s guidance on how to shop for a mortgage and what a Loan Estimate includes. You can learn about Loan Estimates on the CFPB’s page that explains what a Loan Estimate is and how to use it when you compare lenders.
San Marino market realities
High‑value homes and unique estates are common in San Marino. Appraisals may require a broader search for comparable sales and a deeper analysis. For larger loan amounts, some lenders request an appraisal review or a second appraisal. Turn times can be longer, and fees can be higher than average.
Property features such as large lots, custom renovations, or specialty structures can trigger extra underwriting or inspection requirements. Depending on the property, you may see additional focus on seismic, pest, or insurance considerations.
Title and escrow can also be more involved. Estates, trusts, or corporate ownership may require extra documents and coordination so your closing stays on track.
Closing costs to plan for
Larger loan balances lead to larger absolute fees. Expect higher dollar amounts for origination, underwriting, and the appraisal itself. Points and buydowns are common tools to improve your rate, so weigh the cost versus the expected time you plan to hold the loan.
Ask for a written Loan Estimate and compare APR and total settlement charges across lenders. In Los Angeles County, plan for standard recording and transfer taxes, plus any city or county fees. Your escrow or title team can confirm current rates and line items.
Step‑by‑step: get jumbo‑ready in San Marino
Confirm the current conforming loan limit for Los Angeles County so you know where jumbo starts. Use the FHFA’s conforming loan limits page to verify the latest figures by unit type.
Speak with lenders who regularly finance high‑value Los Angeles properties. Ask about typical LTV caps, reserve requirements, appraisal approach for San Marino, and timelines.
Get a preapproval tailored to a jumbo amount. Different lenders can view the same profile differently, so compare offers.
Prepare documentation early. Self‑employed or asset‑rich borrowers should pull bank statements, trust papers, and business returns well in advance.
Budget time and funds for appraisals and potential reviews. Unique homes can lengthen the schedule.
Request side‑by‑side Loan Estimates with the same loan amount, rate, and points for a clean comparison.
Example: buying a $3 million San Marino home
For a straightforward primary residence, a common scenario is 20 percent down. On a $3 million purchase, that is $600,000 down and a $2.4 million jumbo loan. Some lenders allow higher LTVs for exceptionally strong borrowers, while second homes and investment properties usually require larger down payments.
Work with a local guide
A seasoned local team can help you prepare the right documents, line up a lender that fits your profile, and anticipate San Marino‑specific appraisal and escrow steps. If you are exploring options, we are here to help you compare paths and move with confidence.
Have questions about jumbo financing or next steps for your San Marino purchase? Reach out to Megan Spargo‑Ferrell & Team. Start a conversation with Megan Ferrell today.
FAQs
What is a jumbo loan in Los Angeles County?
- A jumbo is any conventional mortgage above the FHFA’s conforming loan limit for the county and unit type; check the current Los Angeles County limits on the FHFA’s conforming loan limits page.
Do jumbo loans require mortgage insurance?
- Standard PMI is generally not available for jumbos; lenders price risk through down payment, reserves, and rate rather than PMI.
How much down payment do I need for a $3 million San Marino home?
- A common example is 20 percent down, which is $600,000, for a $2.4 million jumbo loan; some occupancy types or documentation profiles can require 25 to 30 percent down.
Can self‑employed buyers qualify for a jumbo loan?
- Yes. You can qualify with full tax returns, or through bank‑statement and asset‑depletion programs offered by some non‑QM and portfolio lenders, often with tighter review and higher rates.
How many months of reserves do jumbo lenders require?
- Many programs ask for 6 to 12 months of PITI for primary residences, with higher reserves for larger loans, investment properties, or limited documentation.
