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Most Danville homes require jumbo financing. Properties in Blackhawk, Diablo Country Club, and the Bridges regularly exceed conforming limits.
Jumbo loans start where conforming loans stop. In 2024, that's $832,750 for single-family homes in Contra Costa County.
Jumbo Loans in Danville
Expect tighter standards than conforming loans. Most lenders want 700+ credit, 20% down, and reserves covering 6-12 months of payments.
Debt-to-income caps out around 43% for most jumbo programs. Self-employed borrowers need two years of tax returns showing consistent income.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in Danville.
Most Danville homes require jumbo financing. Properties in Blackhawk, Diablo Country Club, and the Bridges regularly exceed conforming limits.
Jumbo loans start where conforming loans stop. In 2024, that's $832,750 for single-family homes in Contra Costa County.
Expect tighter standards than conforming loans. Most lenders want 700+ credit, 20% down, and reserves covering 6-12 months of payments.
Jumbo rates vary wildly between lenders. One bank might quote 7.5% while another offers 6.8% for the same profile.
Portfolio lenders often beat big banks on jumbo pricing. We shop 200+ wholesale sources to find competitive terms.
Some lenders cap jumbos at $2 million. Others go to $5 million or higher with adjusted pricing tiers.
Danville jumbo buyers benefit from rate shopping. A $1.5 million loan at 6.8% versus 7.3% saves $450 monthly.
Don't assume you need 20% down. Some programs accept 10-15% with higher rates or mortgage insurance.
Asset depletion works for retirees with significant portfolios but limited W-2 income. We've closed several Blackhawk deals this way.
Adjustable rate mortgages often beat fixed jumbos by 0.5-1% initially. Consider a 7/1 ARM if you plan to sell within seven years.
Interest-only jumbo loans reduce payments short-term. They work for commission earners or bonus-heavy tech employees managing cash flow.
Property taxes in Danville run around 1.2% annually. Factor this into debt ratios when qualifying for jumbo amounts.
HOA fees in gated communities add $300-800 monthly. Lenders count these against your qualifying income.
Appraisals take longer in luxury markets. Budget three weeks for properties over $2 million, especially custom builds.
Most lenders require 700, though some accept 680 with larger down payments and reserves. Scores below 700 limit lender options significantly.
Yes, but expect higher rates and possible mortgage insurance. Most 10% down jumbo programs cap at $1.5-2 million loan amounts.
Figure 30-45 days for most jumbo purchases. Complex income situations or high-value properties add time to the process.
Not with 20% down. Below 20%, some lenders require MI while others raise rates instead of charging insurance premiums.
Around $400,000 annually with 20% down, assuming minimal debt. Self-employment income needs two-year average from tax returns.