Jumbo loans in San Jose and Silicon Valley

Who jumbo financing is for

If the loan you need is above the conforming limit for Santa Clara County, you’re borrowing jumbo. In San Jose that describes a large share of ordinary-looking homes, so a jumbo loan here is often just what a normal Bay Area house costs.

What changes above the limit

Jumbo loans aren’t sold to Fannie Mae or Freddie Mac, so each lender writes its own rules. In practice that usually means more months of reserves after closing, a closer look at income stability and at any large deposits, sometimes a second appraisal on larger loans, and more variation in pricing from one lender to the next. None of that is a problem if the file is prepared for it. It is a problem if you find out after you’ve written an offer.

Why comparing matters more here

Jumbo guidelines differ from lender to lender far more than conforming guidelines do. Two lenders can look at the same file and reach different answers on income, assets or reserves. That is the reason to compare before you write an offer rather than after.

Stock and RSU compensation

Many Silicon Valley borrowers are paid substantially in stock. Some lenders will count it, on select programs, and how much counts varies. Typically they want to see:

• A vesting history going back a couple of years
• Evidence that the grants continue
• A stock liquid enough for the lender’s comfort

Two lenders can look at the same vesting schedule and count different amounts of it. Bring the schedule to the first conversation and I’ll tell you which lenders are realistic before anyone pulls credit.

Three ways jumbo files go sideways

• Moving money between accounts in the weeks before applying. Every large deposit has to be explained, and a tidy-up can create a paper chase.
• Paying down debt with the reserves the lender wanted to see after closing.
• Writing an offer on a pre-approval that didn’t account for a jumbo lender’s reserve rules.

Most of that is avoidable if we talk before you start moving money.

Super-jumbo

At higher loan amounts the program shelf narrows and the documentation expectations rise. I’ll tell you plainly which lenders are realistic for your number before you spend time on paperwork.

What to have ready

• Two years of income documentation, including vesting statements if stock is part of your pay
• Statements for the assets you plan to use for the down payment and reserves
• A rough price range, so I can size the structure before you shop

Select programs for qualified borrowers. General information only; not a commitment to lend, a rate quote, or an offer of credit. Programs and terms are subject to change.