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Clayton's hilltop estates and custom homes regularly exceed conforming loan limits. Most properties here need jumbo financing, especially anything with views or significant acreage.
The 2026 conforming limit is $1,249,125 for Contra Costa County. Clayton's housing stock pushes well past that threshold, making jumbo loans the standard tool rather than the exception.
Jumbo Loans in Clayton
Expect to show 680+ credit for most jumbo programs, though 700+ opens better rate tiers. Reserves matter more than with conforming loans—lenders want 6-12 months of payments in the bank after closing.
Debt-to-income ratios run tighter on jumbos. Budget for 43% DTI maximum, sometimes 38% depending on the lender. Self-employed borrowers need two years of tax returns showing stable or rising income.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in Clayton.
Clayton's hilltop estates and custom homes regularly exceed conforming loan limits. Most properties here need jumbo financing, especially anything with views or significant acreage.
The 2026 conforming limit is $1,249,125 for Contra Costa County. Clayton's housing stock pushes well past that threshold, making jumbo loans the standard tool rather than the exception.
Expect to show 680+ credit for most jumbo programs, though 700+ opens better rate tiers. Reserves matter more than with conforming loans—lenders want 6-12 months of payments in the bank after closing.
Not every lender wants jumbo business. The big banks advertise jumbo loans but layer on strict overlays that kill deals. Credit unions rarely go above $1.5 million, which won't cover many Clayton homes.
We access portfolio lenders who underwrite jumbo loans in-house. They price based on the full borrower profile, not just credit score boxes. Rates vary by borrower profile and market conditions, but flexibility beats rate sheets every time.
Clayton buyers often have complex income—stock compensation, bonuses, investment distributions. Jumbo underwriters scrutinize every income line. We structure documentation before you apply to avoid delays and re-submissions.
Asset depletion works for retired buyers with substantial portfolios. Some lenders will qualify you based on investment account balances divided by 360 months. It's not advertised widely but solves problems for cash-rich, income-light borrowers.
If your loan amount sits just above conforming limits, run both scenarios. Sometimes a larger down payment drops you into conforming territory with better rates and fewer restrictions. The savings can outweigh keeping extra cash liquid.
Adjustable rate jumbos start lower than fixed rates—sometimes a full point lower. If you plan to sell or refinance within 7-10 years, ARMs cut your cost dramatically without adding real risk.
Clayton properties with solar leases or HOA litigation complicate jumbo approvals. Lenders treat solar leases as monthly debt. HOA lawsuits can make a property ineligible regardless of your qualifications.
Acreage properties need clear surveys and confirm zoning. Some Clayton parcels have easements or setback requirements that jumbo underwriters flag. Wells and septic systems require inspections that conforming loans skip.
Anything above $832,750 in Contra Costa County requires jumbo financing. Most Clayton homes exceed this threshold given local price points.
Most jumbo lenders require 20% down minimum. Putting down 25-30% unlocks better rate tiers and easier qualification requirements.
Yes, but expect 25-30% down and stricter reserves. Lenders want 12+ months of payments in the bank for non-owner occupied jumbos.
Not always. Strong borrowers often get jumbo rates within 0.125-0.25% of conforming rates. Your credit and reserves matter more than loan size.
Budget 30-45 days from application to closing. Custom properties and complex income add time versus standard tract homes.