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Jumbo Loans in Temple City
Temple City sits in a unique position where many well-maintained single-family homes push against or exceed conforming loan limits. The city's strong school district and proximity to Pasadena drive property values beyond conventional loan caps.
In Los Angeles County, the 2024 conforming limit is $766,550 for single-family homes. Anything above that requires a jumbo loan, which covers a significant portion of Temple City's housing stock.
Jumbo loans require stronger financial profiles than conforming loans. Most lenders want 700+ credit scores, though some accept 680 with higher down payments.
Expect to put down at least 10-20%, with better rates at 20%+. Debt-to-income ratios typically max out at 43%, and you'll need 6-12 months reserves depending on loan size.
Documentation is stricter than conventional loans. Lenders verify every income source and scrutinize large deposits. Self-employed borrowers face extra review of business financials.
Jumbo lending varies wildly between lenders. Some banks price competitively but move slowly. Credit unions often have relationship requirements. Portfolio lenders can be flexible on income documentation.
Rate spreads between lenders can hit 0.5-0.75% on jumbos. That's $150,000+ in interest over 30 years on a $1.2M loan. Shopping across our 200+ lender network typically saves borrowers significant money.
Not all jumbo programs handle condos, investment properties, or cash-out refinances equally. Some lenders cap jumbo loans at $2M, others go to $4M+. Program access matters in Temple City's price range.
Temple City buyers often don't realize they need a jumbo until they're under contract. That's late to start shopping for the best terms. Get pre-approved with jumbo underwriting before you make an offer.
I see borrowers fixate on rate while ignoring structure. An ARM can make sense if you plan to move in 5-7 years. Interest-only periods lower initial payments but require discipline.
The strongest jumbo applications show stable two-year employment, clean credit with zero late payments, and reserves well above the minimum. Lenders want to see you can handle the payment even if income drops.
If your loan amount is close to $766,550, consider structuring it as a conforming loan with a second lien or higher down payment. Conforming rates run 0.25-0.5% lower than jumbo.
Adjustable rate jumbos typically price better than fixed for the first 5-10 years. If you won't keep the home long-term, this saves money. Fixed rates provide payment certainty but cost more upfront.
Interest-only jumbos appeal to high-income borrowers who want flexibility. You pay only interest for 10 years, then principal and interest. This works if income is rising or you invest the payment difference wisely.
Temple City's property tax rate runs about 1.1-1.2% with local assessments. On a $1M home, that's $11,000-$12,000 annually. Lenders include this in DTI calculations, which tightens your buying power.
The city has minimal condo inventory, so jumbo condo financing rarely comes up. Single-family homes dominate, which works in your favor since jumbo lenders prefer them.
Proximity to the 10 freeway and San Gabriel Boulevard makes Temple City accessible without commanding Pasadena or San Marino premiums. You get solid schools and location without extreme pricing.
Most lenders require 10-20% down. You'll get better rates with 20% or more, especially on loans above $1.5M.
Scores above 740 get the best pricing. Below 700, expect rate increases of 0.25-0.75% or denial from some lenders.
Yes, but expect 25-30% down and higher rates. Reserves requirements jump to 12-18 months for non-owner occupied properties.
Most lenders cap at $2-3M, though some portfolio lenders go to $4M+. Loan size affects rate and down payment requirements.
Add 5-10 days to conventional timelines. Expect 30-40 days total, longer if you're self-employed or have complex income.
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.