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Jumbo Loans in Downey
Downey's housing market includes properties that push past the 2024 conforming limit of $766,550 for Los Angeles County. These higher-value homes require jumbo financing, which operates under different underwriting rules than conventional loans.
Many single-family homes and estates in Downey's established neighborhoods fall into jumbo territory. The loan structure you choose here directly impacts your monthly payment and long-term equity position.
Expect lenders to want 700+ credit, though some accept 680 for strong files. Most require 10-20% down depending on loan size, with larger loans demanding bigger down payments.
Cash reserves matter more here than with conforming loans. Lenders typically want 6-12 months of payments in the bank after closing. Your debt-to-income ratio needs to stay under 43% in most cases, though exceptions exist for high earners.
Not all lenders price jumbo loans the same way. Some focus on physician loans with minimal down payment. Others specialize in high-balance scenarios for tech workers or business owners.
Portfolio lenders often offer better terms than banks selling loans to Wall Street. We access 200+ wholesale sources, which means comparing portfolio products against agency jumbos to find your lowest rate.
Most Downey jumbo buyers waste time talking to one bank. That bank quotes their in-house jumbo product, which rarely represents the best available pricing for your specific profile.
The right jumbo lender depends on your credit tier, asset position, and income documentation. A borrower with 750 credit and W-2 income gets completely different pricing than someone with 720 credit and business income, even at the same loan amount.
If your loan amount sits near $766,550, run the numbers both ways. Sometimes a conforming loan with slightly higher purchase price beats a jumbo loan on a lower-priced property because of better rate execution.
Adjustable rate jumbos often price 0.5-0.75% below fixed rates. For buyers planning to move or refinance within 7-10 years, ARMs deliver significant savings without meaningful rate risk during the fixed period.
Downey property taxes run around 1.1-1.2% of purchase price annually. On a $900,000 home, that adds roughly $900 monthly to your payment, which affects debt-to-income calculations and qualification limits.
Appraisals in Downey are straightforward compared to rural areas, but unique properties or recent renovations require extra documentation. Budget 2-3 weeks for appraisal completion in normal markets, longer during purchase surges.
Most lenders want 680 minimum, but 700+ gets you better rates. Score tiers at 700, 740, and 760 each improve pricing by roughly 0.125-0.25%.
Minimum is typically 10% for strong borrowers. Putting down 20% eliminates mortgage insurance and often unlocks better rate tiers across most lender platforms.
Not always. For borrowers with 740+ credit and 20% down, jumbo rates often match or beat conforming rates due to lower default risk and lender competition.
Yes, but expect 20-25% down minimum and higher rates. Lenders also want larger reserves, often 12 months of payments for the new property plus existing mortgages.
Figure 30-45 days from application to closing. Jumbo underwriting takes longer than conforming loans due to additional documentation and manual review requirements.
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.