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Berkeley's median home price sits well above the conforming limit. Golden Gate Fields is becoming a public park, signaling long-term waterfront investment. At 6.375%, a $1.56M purchase with 20% down runs $7,793 monthly for principal and interest alone.
Jumbo loans require tighter underwriting than conventional mortgages. Lenders expect 740+ FICO, 20% down minimum, and six months of reserves in liquid assets. The rate reflects the higher scrutiny and the loan size itself.
6.375%
Interest Rate
$7,793
Monthly P&I
740
Minimum FICO
20% minimum
Down Payment
6 months PITI
Reserves Required
30-45 days
Underwriting Timeline
Jumbo Loans in Berkeley
Jumbo loans in Berkeley start at the conforming ceiling: $1,249,125. You'll need 740 FICO or higher, a clean payment history, and documented reserves. Most jumbo lenders want six months of PITI in savings after closing.
Alameda County's median household income is $126,240. That income supports a $1.56M purchase comfortably when paired with 20% down and strong credit. Debt-to-income limits run tighter on jumbo than conventional—expect 43% maximum.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in Berkeley.
Berkeley's median home price sits well above the conforming limit. Golden Gate Fields is becoming a public park, signaling long-term waterfront investment. At 6.375%, a $1.56M purchase with 20% down runs $7,793 monthly for principal and interest alone.
Jumbo loans require tighter underwriting than conventional mortgages. Lenders expect 740+ FICO, 20% down minimum, and six months of reserves in liquid assets. The rate reflects the higher scrutiny and the loan size itself.
Jumbo loans in Berkeley start at the conforming ceiling: $1,249,125. You'll need 740 FICO or higher, a clean payment history, and documented reserves. Most jumbo lenders want six months of PITI in savings after closing.
Jumbo lending in California is dominated by portfolio lenders and large retail banks. These lenders hold loans on their books rather than selling them, so they set their own rules.
Brokers can access jumbo programs from multiple lenders, which creates competition on rate and terms. Retail banks often price jumbo higher but close faster. Portfolio lenders may offer better rates but require longer documentation cycles.
Jumbo makes sense in Berkeley when you have 20% down and strong reserves. The 6.375% rate pencils out cleanly at $1.56M. Below $1.25M, conventional loans run cheaper because they don't carry the jumbo premium.
The real cost of jumbo isn't the rate—it's the reserves requirement. You need $47,000+ sitting in the bank after closing. If you're stretched on liquidity, a smaller purchase with conventional financing might be smarter.
Conventional loans max out at $1,249,125. Above that, jumbo is your only option. Conventional rates run lower, but conventional can't touch a $1.56M Berkeley home.
If you're right at the conforming ceiling, conventional saves you 0.25-0.5% in rate. But you lose flexibility on terms and lender choice. Jumbo lenders compete harder and offer more customization for large loans.
Golden Gate Fields is becoming a public shoreline park. That $175M investment signals East Bay commitment to waterfront access. Buyers in Berkeley benefit from that infrastructure play—it supports long-term home values near the bay.
Berkeley Restaurant Week runs through April 12, with 74 restaurants participating. Lifestyle amenities like this matter to jumbo buyers who aren't just buying shelter—they're buying a neighborhood. Strong local dining and culture support resale appeal.
At 6.375% on a $1.25M jumbo loan, principal and interest run $7,793 monthly. Add property tax, insurance, and HOA—total housing payment typically hits $10,500-$11,200. That's the real monthly cost.
Yes. Jumbo lenders require 20% down minimum. Some portfolio lenders go to 15% with higher rates and larger reserves, but 20% is the standard. Below 20%, you're back to conventional loans, which max out at $1.25M.
Minimum 740 FICO. Most jumbo lenders won't touch anything below that. At 740, you qualify, but 760+ gets you better pricing. Late payments or high utilization in the past two years can disqualify you even at 750+.
Six months of PITI (principal, interest, taxes, insurance) in liquid assets after closing. On a $1.56M Berkeley home, that's roughly $47,000-$50,000 sitting in the bank. Retirement accounts don't count—it has to be accessible cash.
30-45 days is typical. Jumbo files are deeper than conventional—lenders verify employment, assets, and reserves more thoroughly. Retail banks move faster (30 days) but charge higher rates. Portfolio lenders take longer but price better.