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Jumbo Loans in Avalon
Every property in Avalon requires a jumbo loan. The island's unique real estate market pushes prices well above conforming limits.
Catalina Island homes come with premium pricing due to limited inventory and high demand. Most transactions here exceed $1.5 million.
Lenders price Avalon jumbos differently than mainland properties. Island location adds layers of underwriting scrutiny.
Expect longer closing timelines for Avalina deals. Appraisers and inspectors must boat over, adding 2-3 weeks to standard schedules.
You need a 680 credit score minimum for Avalon jumbos. Most approved borrowers carry 720+ scores.
Expect to put down 20-30% depending on loan amount. Properties over $3 million often require 30% down.
Debt-to-income ratios max out at 43% for most lenders. Strong reserves matter more here than mainland deals.
Cash reserves of 12-18 months required at closing. Lenders want assurance you can handle island property costs.
Maybe 30 of our 200+ lenders will touch Avalon properties. Island location eliminates most jumbo programs immediately.
Portfolio lenders dominate this market. They hold loans in-house rather than selling to Fannie or Freddie.
Rates run 0.25-0.50% higher than mainland jumbos. Geographic risk premium applies to all Catalina Island deals.
Some lenders require earthquake insurance as a condition of approval. Verify requirements before locking rates.
Start preapproval 60 days before shopping. Avalon deals need extra time for lender education about the island market.
Work with escrow companies experienced in Catalina transactions. Title and closing logistics differ from mainland deals.
Property inspections cost more and take longer. Budget an extra $2,000-$3,000 for inspector travel and time.
Refinances work differently here. Limited sale comps make rate-and-term refis harder to get approved than purchases.
Adjustable rate mortgages make sense for many Avalon buyers. ARMs offer lower initial rates when you need maximum buying power.
Interest-only jumbo loans work well for high-income buyers with variable compensation. Keep monthly payments flexible during tourist season fluctuations.
Some borrowers split financing between first and second mortgages. This strategy can avoid higher rate tiers on mega-jumbo amounts.
Conforming loans don't exist in Avalon's price range. Conventional financing maxes out around $766,550 for 2024.
Ferry access affects property values and lender appetite. Homes requiring golf cart transport from the dock get extra scrutiny.
Seasonal rental income rarely counts toward qualification. Most lenders ignore vacation rental projections for debt-to-income calculations.
Water availability and utilities impact appraisals. Properties with infrastructure issues face approval challenges.
HOA fees run high on the island. Budget $300-$800 monthly for association dues in most Avalon neighborhoods.
Anything above $766,550 for 2024. Practically every Avalon property exceeds this threshold given island pricing dynamics.
Most waterfront and near-waterfront properties require it. Lenders evaluate flood zone maps during underwriting for all coastal Catalina homes.
Yes, second home jumbos work well here. Rates and down payments match primary residence requirements for most lenders.
Appraisers use mainland coastal comps with adjustments for island location. Expect conservative valuations due to unique market factors.
Rates vary by borrower profile and market conditions. Typically 0.125-0.25% spread between these ARM terms for jumbo loans.
A handful of portfolio lenders go to 15% down for exceptional borrowers. Expect significantly higher rates and stricter qualification standards.
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.