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Jumbo Loans in Los Angeles
Most properties in Los Angeles hit the conforming limit fast. A median condo in Century City runs $800K. Single-family homes in Brentwood, Hancock Park, or Pacific Palisades clear $2 million without breaking a sweat.
The 2024 conforming limit for LA County is $766,550 for single-family homes. Anything above that triggers jumbo financing. In this market, jumbo isn't exotic — it's standard for anyone buying a house with a yard.
Lenders want 700+ credit for competitive rates. Some programs start at 680, but you'll pay for it. Down payment ranges from 10% to 20% depending on loan size and your profile.
Expect strict debt-to-income scrutiny. Most lenders cap DTI at 43%, though some stretch to 45% for strong borrowers. You'll need 6-12 months reserves — cash in the bank equal to that many mortgage payments.
Documentation runs heavier than conforming. Two years tax returns, full asset verification, and paper trails for large deposits. Self-employed borrowers face extra hoops proving stable income.
Jumbo isn't a single product. Each lender builds their own box with different credit overlays, reserve requirements, and property restrictions. One might cap at $3 million. Another goes to $10 million but demands 25% down.
Portfolio lenders price jumbos in-house and hold the loans. They can bend on things like employment gaps or property type. Credit unions compete here too, often beating big banks by 25-50 basis points.
Rate shopping matters more on jumbo than conforming. A quarter-point difference on a $2 million loan costs you $5,000 annually. We quote 15-20 lenders per deal to find the tightest spread.
Jumbo underwriting moves slower than conforming. Budget 30-45 days for complex deals with multiple properties or business income. Appraisals take longer in luxury markets where comps are sparse.
Foreign nationals buying in LA can get jumbo financing. Expect 30-40% down and higher rates. Some lenders handle it clean. Others make it painful. Knowing which is which saves months.
ARM products make sense for jumbo buyers who refinance every 5-7 years. A 7/1 ARM typically prices 50-75 bps below the 30-year fixed. On $2 million, that's $12K annual savings during the fixed period.
Cash-out refis on jumbo properties face tighter limits. Most lenders cap at 80% LTV for cash-out, 85% for rate-and-term. California has strong refinance activity, so this comes up constantly.
Conforming loans cap at $766,550 in LA County. Rates run lower and guidelines softer. If you can stay under that limit by adjusting down payment or purchase price, you save money and hassle.
Interest-only jumbo loans exist for high earners with lumpy income. You pay only interest for 10 years, then it converts to fully amortizing. Monthly payment drops 30-40% during the IO period.
Some borrowers split financing: conforming first at $766K, then a second lien for the rest. This avoids full jumbo pricing but creates two payments and more closing complexity.
LA properties carry high property taxes and HOA fees. A $1.5 million condo in DTLA might have $800/month HOA plus Mello-Roos. These hit your DTI calculation hard.
Earthquake insurance isn't required but often smart. Lenders don't mandate it, but anyone financing $2 million in a seismic zone should consider coverage. It affects your monthly housing cost math.
Luxury condos with litigation history get flagged. Buildings with active lawsuits or deferred maintenance can't get financed until issues clear. This kills deals in older high-rises across LA.
Appraisals in neighborhoods like Beverly Hills or Malibu rely on sparse comps. One recent sale can swing value $200K. Appraisal gaps happen more here than in tract home markets.
Most lenders want 700+ for competitive rates. Programs exist at 680, but pricing jumps significantly. Strong compensating factors like low DTI can help.
Yes, several lenders offer 10% down jumbo programs. You'll need excellent credit, strong reserves, and expect higher rates than 20% down scenarios.
Typically 6-12 months of total housing payment in liquid assets. Larger loan amounts or marginal credit push toward the 12-month end.
No, jumbo loans don't use PMI. Lenders price the risk into the rate instead. This is why down payment size affects pricing directly.
There's no upper limit, but anything above $766,550 is jumbo. Individual lenders cap their programs between $2-10 million depending on guidelines.
Usually yes, but the gap narrowed. Jumbo rates run 25-75 bps higher depending on loan size and borrower profile. Rate shopping across lenders matters.
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.