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Jumbo Loans in Clovis
Clovis offers a unique opportunity for jumbo loan buyers seeking space and quality of life in the Central Valley. Properties exceeding conforming loan limits provide room for growing families, equestrian facilities, and custom estates.
The city's growing appeal to professionals and entrepreneurs from coastal markets has increased demand for higher-value properties. Jumbo financing makes these premium homes accessible to qualified buyers.
As Clovis continues attracting buyers seeking alternatives to expensive coastal markets, jumbo loans serve those purchasing luxury homes, custom builds, and properties on larger lots.
Jumbo loan approval requires stronger financial credentials than conforming loans. Most lenders expect credit scores of 700 or higher, though some programs accept 680 with compensating factors.
Down payment requirements typically start at 10-20% depending on loan amount and property type. Reserve requirements often mandate 6-12 months of mortgage payments in liquid assets after closing.
Debt-to-income ratios usually max out at 43%, though exceptions exist for well-qualified borrowers. Income documentation is thorough, requiring two years of tax returns and recent pay stubs or business financials.
Not all lenders offer jumbo programs, and those that do have varying appetite based on loan size and borrower profile. Portfolio lenders often provide more flexibility than institutions selling loans on the secondary market.
Rate spreads between jumbo and conforming loans have narrowed considerably. Some jumbo rates actually compete with or beat conforming rates due to the strong borrower profiles these loans attract.
Working with a broker gives you access to multiple jumbo lenders simultaneously. This matters because jumbo lending guidelines vary more than conforming programs, and pricing can differ significantly between lenders.
Timing matters with jumbo loans. Approval timelines often extend beyond conforming loans due to additional underwriting layers and appraisal complexity. Plan for 30-45 days minimum for purchase transactions.
Asset documentation receives extra scrutiny. Large deposits require detailed sourcing, and gift funds face stricter verification. Having clean bank statements for the previous two months simplifies the process.
Consider rate lock strategy carefully. Jumbo loans involve larger dollar amounts, so even small rate changes impact your monthly payment significantly. Discuss float-down options if available.
Conventional conforming loans offer simpler qualification and faster processing, but they cap out below jumbo territory. If your purchase price exceeds conforming limits, jumbo financing is your primary conventional option.
Interest-only jumbo loans appeal to buyers with variable income or those who prefer flexibility. These programs reduce initial payments but require substantial equity and financial sophistication.
Adjustable rate mortgages in the jumbo space can offer lower initial rates for buyers planning shorter ownership periods. The 7/1 and 10/1 ARM products provide stability while capitalizing on lower rates.
Clovis properties often include features that require specialized appraisals. Equestrian facilities, oversized lots, and custom improvements can complicate the valuation process and extend timelines.
Property insurance costs in the Central Valley have increased due to wildfire risk in surrounding areas. Lenders scrutinize insurance coverage closely, and some require additional umbrella policies for higher-value homes.
Property tax assessments in Fresno County are typically lower than coastal counties, which helps offset the higher loan amounts. This makes jumbo financing more manageable for buyers relocating from pricier markets.
Jumbo loans start where conforming limits end. In most of California, this means loans above $766,550 for single-family homes. Limits adjust annually based on housing price changes.
Yes, some lenders offer 10% down jumbo programs for well-qualified borrowers. Expect higher rates and stricter requirements compared to 20% down options. Strong credit and reserves help.
Not always. Jumbo rates often compete with conforming rates because borrowers typically have excellent credit. Rates vary by borrower profile and market conditions. Shopping multiple lenders helps find the best rate.
Expect 30-45 days minimum for purchase transactions. Additional underwriting requirements and specialized appraisals extend timelines beyond conventional loans. Starting pre-approval early helps avoid delays.
Absolutely. Self-employed borrowers qualify with two years of tax returns and year-to-date profit and loss statements. CPAs should prepare documentation showing stable or increasing income trends.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.