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Jumbo Loans in Millbrae
Millbrae's proximity to San Francisco International Airport and Peninsula employment centers makes it a sought-after location for high-value homes. Many properties in this San Mateo County city exceed conforming loan limits, requiring jumbo financing.
Jumbo loans enable buyers to purchase luxury properties that standard conforming loans cannot cover. These mortgages serve the unique needs of Millbrae's competitive real estate market where premium locations command premium prices.
Rates vary by borrower profile and market conditions. Working with an experienced broker helps secure competitive terms on these larger loan amounts.
Jumbo loans require stronger financial profiles than conforming mortgages. Lenders typically want credit scores of 700 or higher, though some programs accept 680 with compensating factors.
Most lenders require 10-20% down payment depending on loan amount and property type. Reserves of 6-12 months are common, showing you can handle payments even during income disruptions.
Debt-to-income ratios generally need to stay under 43%, though some lenders allow up to 45% for well-qualified borrowers. Income documentation is thorough, requiring tax returns, W-2s, and asset verification.
National banks, credit unions, and portfolio lenders all offer jumbo products in San Mateo County. Each brings different strengths to the table in terms of rates, flexibility, and underwriting approach.
Portfolio lenders often provide more flexibility on unique properties or complex income situations. Banks may offer relationship pricing if you maintain significant deposits or investment accounts with them.
Working with a broker gives you access to multiple lender options simultaneously. This comparison shopping helps identify the best rate and terms match for your specific financial situation.
Jumbo loan pricing varies significantly between lenders, sometimes by half a percent or more. This difference translates to thousands of dollars annually on a million-dollar-plus mortgage.
Timing matters with jumbo loans since processing takes longer than conforming mortgages. Start your pre-approval 60-90 days before you plan to shop seriously to avoid delays when you find the right property.
Consider both fixed and adjustable rate options. ARMs often provide lower initial rates, which can make sense if you plan to move or refinance within 5-7 years.
Conforming loans cap at $766,550 for single-family homes in most California counties in 2024. Any loan above this threshold requires jumbo financing, which comes with stricter requirements but competitive rates.
While conforming loans allow down payments as low as 3%, jumbo loans typically start at 10% down. However, jumbo rates have become increasingly competitive with conforming rates in recent years.
Interest-only jumbo loans provide payment flexibility for borrowers with variable income or investment strategies. You pay only interest for 5-10 years before principal payments begin, lowering initial monthly costs.
Millbrae's position on the Peninsula puts it in a high-cost area where jumbo financing is routine rather than exceptional. The city's strong schools and convenient transit access support property values that often require larger loan amounts.
Property taxes in San Mateo County add to your housing costs, with rates around 1.2% of assessed value. Lenders factor these costs into your debt-to-income calculations alongside your mortgage payment.
Condo restrictions can affect jumbo loan approval in Millbrae. Some buildings near SFO or along transit corridors may require additional scrutiny from jumbo lenders regarding HOA finances and owner-occupancy ratios.
Any mortgage exceeding $766,550 for a single-family home requires jumbo financing. This limit applies to most California counties including San Mateo. Investment properties and multi-unit homes have different thresholds.
Yes, many lenders offer jumbo loans with 10% down for qualified borrowers. Expect higher rates or stricter requirements compared to 20% down. Some lenders require 15-20% depending on loan amount and property type.
Jumbo loans typically take 30-45 days from application to closing. Additional documentation requirements and manual underwriting contribute to longer timelines. Starting pre-approval early prevents delays when you find a property.
Not necessarily. Jumbo rates often match or even beat conforming rates for well-qualified borrowers. Rates vary by borrower profile and market conditions. Strong credit and substantial assets help secure competitive pricing.
Self-employed borrowers qualify for jumbo loans with proper documentation. Expect to provide 2 years of tax returns, profit and loss statements, and business bank statements. CPAs or tax professionals can help present income effectively.
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.