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Jumbo Loans in Santa Monica
Santa Monica pushes most buyers past conforming limits fast. The 2024 ceiling sits at $766,550 for single-family homes in Los Angeles County — barely enough for a beach-adjacent condo.
Jumbo financing dominates this market. We see borrowers using jumbo loans for everything from Main Street lofts to Montana Avenue estates. Rates vary by borrower profile and market conditions.
Expect stricter standards than conforming loans. Most lenders want 700+ credit scores, though we place borrowers at 660 with compensating factors like larger down payments.
Cash reserves matter here. Lenders typically require 6-12 months of post-close reserves — more for second homes or investment properties. Down payment minimums run 10-20% depending on the loan amount.
Not all lenders offer jumbo products, and those that do price them differently. We shop across 200+ wholesale lenders because a $1.5M loan shows massive rate variance between institutions.
Portfolio lenders often beat big banks on larger loan amounts. Some specialize in high-balance coastal properties and understand Santa Monica's unique market dynamics better than national lenders.
Santa Monica buyers often miss that jumbo loans can have lower rates than conforming loans when credit and reserves are strong. The relationship flips above $2M — you need perfect positioning.
Documentation gets scrutinized harder on jumbo files. Bank statement programs exist for self-employed borrowers, but expect 20-25% down. The underwriter reads every line of your financial profile.
Adjustable rate mortgages pair well with jumbo amounts if you plan to sell or refinance within 7-10 years. The initial rate discount matters more on a $2M loan than a $500K loan.
Interest-only structures appeal to high-income borrowers managing cash flow. Not every lender offers them, and qualification standards tighten further. We know which lenders actually close these deals.
Properties near the beach or in historic districts face appraisal complexity. Comparable sales matter, and lenders get nervous when comps vary widely or sit outside Santa Monica proper.
Condos in rent-controlled buildings create underwriting hurdles. Some lenders won't touch them. We track which institutions approve North of Montana condos and PCH high-rises without drama.
Most lenders require 10-20% down depending on loan amount and property type. Expect 20%+ for investment properties or loans above $2M.
Yes, but expect higher rates and possibly 20% down. Clean credit history and strong reserves improve your odds significantly.
Not always. Borrowers with 740+ credit and 20% down sometimes see competitive or better jumbo rates. Pricing depends on your complete financial profile.
Expect 30-45 days from application to close. Appraisal complexity and documentation requirements extend timelines compared to conforming loans.
Some lenders avoid rent-controlled buildings entirely. We work with lenders experienced in Santa Monica's rental regulations and know which buildings they approve.
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.