Are you shopping for a home in San Marino and wondering if you will need a jumbo loan? You are not alone. Many homes in this area sit above standard lending limits, which can change how you prepare and how your loan is approved. In this guide, you will learn what counts as a jumbo in Los Angeles County, what lenders look for, how rates and products differ, and how to plan your purchase with fewer surprises. Let’s dive in.
What counts as a jumbo in San Marino
A jumbo mortgage is any loan that is too large to be purchased by Fannie Mae or Freddie Mac. The Federal Housing Finance Agency sets the conforming loan limit each year. For 2024, the baseline single-family limit is $766,550. In high-cost areas, the one-unit limit is $1,149,825.
Los Angeles County is treated as a high-cost county for one-unit homes in 2024. That means any first mortgage above $1,149,825 is a jumbo in LA County. In San Marino, many purchase prices will push a typical loan above that number unless you make a large down payment. Since limits change annually, you should confirm the current year’s county limit before you make decisions about financing.
Underwriting and documentation basics
Jumbo loans carry more risk for lenders because they are not sold to Fannie or Freddie. That means the approval process is usually tighter, and documentation is more detailed. Exact rules vary by lender and product, but the themes below are common.
Income verification
Most lenders will ask for full documentation. Expect two years of tax returns, W-2s if you are salaried, recent pay stubs, and year-to-date earnings. If you are self-employed, plan to provide personal and business tax returns, K-1s where applicable, and a current profit-and-loss statement.
Some lenders offer bank-statement or asset-qualifying jumbo programs. These can help if your income is complex, but they often come with different pricing and stricter terms.
Credit, DTI, and reserves
Credit score standards are usually higher for jumbos. Many lenders target mid-700s for the best pricing. Some accept lower scores if you have a larger down payment or other strengths. Lenders also review debt-to-income ratios more conservatively. It is common to see maximum DTI in the low to mid 40 percent range, depending on your full profile.
Reserves matter. You may need 6 to 12 months of total housing payments in liquid assets after closing. That number can rise if you have multiple financed properties or a lower credit profile.
Down payment and loan-to-value
A 20 to 30 percent down payment is typical for many jumbo programs. Some lenders allow 10 to 15 percent down with stronger profiles, but you should expect tighter approval standards and possibly higher rates. Mortgage insurance works differently with jumbos. PMI is less common and often not used, which is one reason many lenders prefer higher down payments.
Assets and gift funds
Be ready to document your bank, brokerage, and retirement accounts for several months. Large deposits must be sourced. Gift funds are often allowed, but you will need a donor letter and documentation that meets the lender’s rules.
Employment and business history
Stable employment is key. Lenders will verify your job and income. If you run a business, you may be asked for business financials in addition to tax returns, especially if income has shifted year over year.
Other common overlays
Jumbo lenders sometimes add extra rules, such as limits on the number of financed properties, seasoning periods after a title change, and tighter terms for cash-out refinances. Ask early about any overlays that could affect you.
Rates and loan products that fit luxury buyers
How jumbo rates behave
Jumbo rates follow broader interest markets, but they also reflect lender risk and investor demand. At times, jumbo rates can be a bit higher than conforming rates, and at other times they can be similar or even lower. Your rate will depend on loan amount, down payment, credit score, the product you choose, and whether the loan stays on a bank’s balance sheet.
Common jumbo products
- Fixed-rate jumbos in 15, 20, or 30-year terms are common for purchases.
- Adjustable-rate jumbos can offer lower initial rates and caps you should review carefully.
- Portfolio and bank-statement jumbos can help self-employed borrowers or those with complex income.
- Non-QM products can serve unique needs and income types. Pricing is often higher, and terms vary.
Types of lenders to consider
- Banks and private banks often offer competitive portfolio jumbos, sometimes with benefits for existing clients.
- Credit unions can have favorable pricing if you qualify for membership.
- Mortgage brokers and non-bank lenders provide access to many wholesale jumbo programs, including higher-LTV and specialty options.
Compare total costs, not just the rate. Fees, prepaids, and rate-lock costs can vary by lender.
Lock periods and timing
Jumbo loans can take longer to underwrite and appraise, so you may need a longer rate lock. Ask about extended locks and whether a float-down option is available if rates drop.
Appraisals and property issues in San Marino
San Marino has many high-value and unique homes. That can make appraisals more complex because there are fewer close comparable sales. Lenders often require full interior and exterior appraisals and may order a second appraisal or a desk review if risk is higher.
Appraisers may widen the comp search to nearby prestigious Los Angeles neighborhoods when needed and then adjust for lot size, square footage, condition, and features. This is normal for luxury properties where same-model comps are limited.
What can trigger a second appraisal
A very high price point, limited recent comps, major renovations, or unique architecture can prompt a second opinion. Build extra time into your timeline to accommodate this.
Condo and HOA reviews
If you are buying a condo or townhome, jumbo lenders will review the project’s financials, reserves, and documentation. Some lenders have stricter condo project rules than standard conforming loans. Share HOA documents early to avoid delays.
Historic or unique properties
Homes with historic elements, extensive accessory structures, or mixed-use features may need lender preapproval for collateral. Ask your lender before you write an offer so you can set proper expectations with the seller.
Inspections and condition
You should plan for a general home inspection and a termite or pest inspection. Older systems or specialized features may call for additional reports. If major repairs are found, discuss whether to address them before the appraisal, request seller credits, or adjust price, depending on your negotiation strategy.
Planning for appraisal gaps
In thin markets, an appraisal can come in below the contract price. If that happens, your options can include increasing your down payment, negotiating a price reduction, requesting a seller credit, or submitting a reconsideration of value with better comps. Talk through these paths with your agent and lender before you remove contingencies.
How to get ready for a jumbo in San Marino
Preparation is your edge. Use this checklist to move fast and reduce stress once you find the right home.
- Gather documents: 2 years of tax returns, W-2s if applicable, recent pay stubs, and bank and investment statements. Self-employed buyers should add K-1s and current profit-and-loss.
- Review your credit: correct errors and reduce revolving balances where possible.
- Build reserves: target 6 to 12 months of total housing payments in liquid funds, plus closing costs and moving expenses.
- Get preapproved: choose a lender experienced with LA County jumbos. Compare at least two options so you understand pricing, fees, and lock policies.
- Prepare for gift funds: line up donor letters and document the source in advance.
- Plan your offer strategy: coordinate with your agent on appraisal and loan contingencies, timeline, and communication with the seller.
Timeline and possible delays
A jumbo loan often closes in 30 to 45 days. Complex income, appraisals that require extra review, or condo project approvals can add time. Build a realistic escrow timeline into your offer so the seller trusts your plan.
Costs and what to compare
Closing costs can be higher for jumbos because of pricing adjustments, larger appraisal fees, and more detailed underwriting. Ask for a Loan Estimate early and compare the full picture: rate, points, lender fees, third-party fees, and the cost of your chosen lock period.
How jumbo decisions play out in practice
- If your purchase price would put the first mortgage above the LA County high-cost limit, you will likely use a jumbo. You can also choose to increase your down payment to keep the loan under the limit.
- A stronger profile, such as a higher credit score, lower DTI, larger down payment, and ample reserves, can improve pricing and expand your product choices.
- If your income is complex, consider a lender that offers portfolio or bank-statement jumbo programs, then weigh the trade-offs in rate and documentation.
Work with a local advocate
San Marino buyers benefit from a team that knows the local market in Pasadena, South Pasadena, Altadena, and San Marino and understands how jumbo underwriting plays out on the ground. You want clear guidance on appraisal risk, timelines, and negotiation points so you can write a compelling offer and close with confidence.
If you are planning a move in San Marino or nearby, connect with a trusted local advisor who brings experience with both luxury and move-up purchases and the communication you need from start to finish. To talk strategy for your purchase or to explore options, reach out to Tony Dowdy.
FAQs
What is a jumbo loan in Los Angeles County for 2024?
- For a one-unit home in 2024, loans above $1,149,825 are jumbo in LA County. The national baseline is $766,550, and limits update yearly, so confirm the current year before you shop.
How much down payment do I need for a jumbo in San Marino?
- Many buyers put 20 to 30 percent down. Some lenders allow 10 to 15 percent down, usually with stricter terms and higher rates. Exact options vary by lender.
Do jumbo loans include mortgage insurance like PMI?
- Not in the same way conforming loans do. PMI is less common on jumbos, and many lenders expect higher down payments to manage risk.
How long does a jumbo purchase take to close?
- Plan for 30 to 45 days. Complex income, appraisal reviews, or condo project approvals can extend the timeline, so set expectations with the seller.
What if the appraisal comes in below the contract price?
- You can add to your down payment, request a price reduction, ask for a seller credit, or seek a reconsideration of value. Discuss these paths before you remove contingencies.
Are jumbo rates always higher than conforming rates?
- Not always. The spread changes with market conditions and lender strategy. Compare multiple lenders and products to find the best fit for your profile.
