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Jumbo Loans in Santa Clarita
Santa Clarita's housing stock pushes many buyers past conforming loan limits. Properties in Valencia, Stevenson Ranch, and Canyon Country frequently require jumbo financing.
Newer construction and hillside estates here often exceed $1.15 million. That puts them squarely in jumbo territory, requiring different underwriting than standard mortgages.
The city's appeal to families upgrading from Los Angeles proper means many buyers arrive with equity. That helps with the larger down payments jumbo lenders typically require.
Expect to put down 15-20% minimum. Most lenders want 680+ credit scores, though 720+ gets you competitive rates.
Your debt-to-income ratio needs to stay below 43% in most cases. Lenders scrutinize reserves too—plan on showing 6-12 months of payments in savings.
Income documentation is stricter than conforming loans. W-2 earners need two years of tax returns. Self-employed borrowers should expect full financial reviews.
Jumbo programs vary wildly between lenders. One might cap you at 80% LTV while another goes to 90% with the right profile.
Portfolio lenders often beat big banks on flexibility. They keep loans in-house rather than selling them, which means more negotiating room on underwriting.
Rate spreads between lenders can hit 0.5% or more on jumbos. Shopping this loan type matters more than shopping a conforming loan.
I see buyers waste time with their existing bank first. Banks rarely offer competitive jumbo rates compared to wholesale channels brokers access.
Documentation kills deals more than credit scores. Get tax returns, bank statements, and asset statements organized before you start shopping seriously.
ARMs make sense for jumbo borrowers more often than conforming buyers. The rate savings on 7/1 or 10/1 ARMs can be substantial when you're borrowing $2 million.
Self-employed buyers in Santa Clarita should explore bank statement programs if tax returns show heavy write-offs. You'll pay slightly higher rates but actually qualify.
Conforming loans stop at $806,500 in LA County for 2024. Anything above that needs jumbo financing or a piggyback second mortgage structure.
Interest-only jumbo loans appeal to buyers with variable income. You pay less monthly but build no equity—works for those planning to sell within 10 years.
Some borrowers split financing: conforming first mortgage plus a second lien. This avoids jumbo rates but adds complexity and a second payment.
Valencia properties appreciate differently than Canyon Country. Lenders know this—expect tighter guidelines on rural canyon properties versus planned communities.
HOA dues in master-planned areas like Westridge or Vista Valencia get factored into DTI. Those $400-600 monthly fees affect how much house you qualify for.
New construction from builders like Toll Brothers often comes with preferred lenders. Their rates might beat outside lenders, but always shop to confirm.
Most lenders require 15-20% down. Some portfolio lenders go to 10% with excellent credit and reserves, but expect higher rates.
Typically 0.25-0.75% higher, though it varies by lender. Strong borrower profiles sometimes get jumbo rates matching conforming rates.
Yes, but expect 25-30% down minimums. Lenders treat investment jumbos as higher risk than primary residence jumbos.
Not necessarily. You can use a conforming first mortgage plus a second lien to avoid jumbo requirements if you have enough down payment.
Add 5-10 days to standard timelines. The additional documentation review and appraisal scrutiny extends the process slightly.
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.