Question 1

What credit score do I need for a jumbo loan in Los Altos Hills?

Accepted Answer

Most jumbo lenders want 700 minimum, but 720+ gets you better rates. A few portfolio lenders will go to 680 if you put 30% down.

Question 2

How much down payment is required for homes over $2 million?

Accepted Answer

Expect 20% minimum for most jumbo loans. Some lenders want 25-30% once you cross $3 million, depending on your debt-to-income ratio.

Question 3

Can I use a bank statement loan if I'm self-employed?

Accepted Answer

Yes, bank statement loans work well for business owners who write off significant income. We calculate qualifying income from 12-24 months of deposits.

Question 4

What documentation do jumbo lenders require?

Accepted Answer

Two years tax returns, two months bank statements, investment account statements, and full asset documentation. Expect more scrutiny than conforming loans.

Question 5

How long does it take to close on a home in Los Altos Hills?

Accepted Answer

Standard closings take 30-45 days. Cash-out refis add a three-day rescission period, so plan on 33-48 days total.

Question 6

Are there lower down payment options for high-priced homes?

Accepted Answer

Not many. A few portfolio lenders offer 15% down jumbo loans, but rates run higher and you'll pay PMI until you hit 20% equity.

Question 7

What's the difference between conforming and jumbo loans?

Accepted Answer

Conforming loans stay under $806,500 in Santa Clara County. Jumbo loans exceed that limit and typically require higher credit scores and larger down payments.

Question 8

Can I finance a tear-down and rebuild in Los Altos Hills?

Accepted Answer

Yes, construction loans handle this. You'll need 20-25% down, detailed plans, and a licensed contractor with a proven track record.

Question 9

Do I need reserves for a jumbo loan?

Accepted Answer

Most lenders want 6-12 months of mortgage payments in reserves. Higher loan amounts may require 18-24 months depending on the lender.

Question 10

What's a DSCR loan and when does it make sense?

Accepted Answer

DSCR loans qualify you based on rental income, not personal income. They work for investors buying rental property who don't want to document W-2 income.

Question 11

Can I get a mortgage if I'm on a work visa?

Accepted Answer

Yes, with proper documentation. You'll need visa details, employment verification, and proof your visa extends at least three years beyond closing.

Question 12

What are typical closing costs on a $3 million home?

Accepted Answer

Expect 1.5-2.5% of purchase price. That includes title, escrow, appraisal, and lender fees — roughly $45,000-$75,000 on a $3 million purchase.

Question 13

Should I pay points to lower my rate?

Accepted Answer

Only if you're keeping the loan 5+ years. One point costs 1% of the loan amount and typically drops your rate 0.25%. Do the breakeven math.

Question 14

What income do I need to qualify for a $2 million mortgage?

Accepted Answer

With 20% down, you'll need roughly $35,000-$40,000 monthly gross income depending on your other debts. That assumes a 43% debt-to-income ratio.

Question 15

Can I use an asset depletion loan if I have significant investments?

Accepted Answer

Yes, we calculate qualifying income by dividing your liquid assets by 360 months. Works well for retirees or those with stock-heavy compensation.

Question 16

What's the advantage of a portfolio ARM?

Accepted Answer

Portfolio ARMs offer lower initial rates and more flexible underwriting than fixed-rate jumbos. Good if you plan to sell or refi within 5-7 years.

Question 17

Do foreign nationals qualify for mortgages in Los Altos Hills?

Accepted Answer

Yes, foreign national loans require 30-40% down and don't need U.S. credit or tax returns. Rates run 0.5-1% higher than standard jumbo loans.

Question 18

What's a bridge loan and when should I use one?

Accepted Answer

Bridge loans let you buy before selling your current home. They're short-term and expensive, but solve timing problems in competitive markets.

Question 19

Can I get a jumbo loan with 1099 income only?

Accepted Answer

Yes, 1099 loans work for contractors and consultants. We use 12-24 months of 1099 forms to calculate income without requiring full tax returns.

Question 20

What appraisal issues come up in Los Altos Hills?

Accepted Answer

Limited comparable sales can complicate appraisals on unique or high-value properties. Allow extra time and be ready to provide additional comps to the appraiser.

Question 21

Are interest-only loans available for primary residences?

Accepted Answer

Yes, but mostly on jumbo loans with strong borrower profiles. You pay only interest for 10 years, then it converts to principal and interest.

Question 22

What's the current jumbo rate environment?

Accepted Answer

Rates vary by borrower profile and market conditions. As of February 2026, jumbo rates are competitive with conforming loans for well-qualified borrowers.

Question 23

Can I use gift funds for my down payment?

Accepted Answer

Yes, but jumbo lenders have stricter gift rules. You'll need a gift letter and proof the donor has the funds before and after the transfer.

Question 24

What debt-to-income ratio do jumbo lenders allow?

Accepted Answer

Most cap at 43%, though some portfolio lenders go to 45% with strong compensating factors like high credit scores or significant reserves.

Question 25

Should I get pre-approved before looking at homes?

Accepted Answer

Absolutely. Sellers in Los Altos Hills expect serious buyers to have full underwriter pre-approval, not just a pre-qualification letter.

Question 26

What's the difference between FHA and conventional loans?

Accepted Answer

FHA loans allow 3.5% down but cap at $644,000 in Santa Clara County. Most Los Altos Hills homes exceed that, requiring conventional or jumbo financing.

Question 27

Can I finance solar panels or energy upgrades?

Accepted Answer

Yes, FHA 203k and conventional HomeStyle loans cover purchase plus improvements. For existing homes, HELOCs or home equity loans work better.

Question 28

What happens if my appraisal comes in low?

Accepted Answer

You'll need to make up the difference in cash, renegotiate the price, or walk away. Jumbo lenders won't lend more than appraised value.

Question 29

Are there prepayment penalties on jumbo loans?

Accepted Answer

Rare on owner-occupied homes. Some portfolio and investor loans have prepayment penalties for the first 3-5 years — always ask before locking.

Question 30

What's a profit and loss statement loan?

Accepted Answer

P&L loans use your CPA-prepared financials instead of tax returns. They work for business owners whose tax returns understate actual income.

Question 31

Can I buy an investment property with a jumbo loan?

Accepted Answer

Yes, but expect 25-30% down and higher rates. DSCR loans are often better for investors since they focus on rental income, not personal income.

Question 32

How do I choose between a 15-year and 30-year mortgage?

Accepted Answer

15-year mortgages save interest but double your payment. Most Los Altos Hills buyers take 30-year loans and invest the payment difference elsewhere.

Question 33

What's the benefit of working with a mortgage broker?

Accepted Answer

Brokers shop 200+ lenders to find the best rate and program fit. Banks only offer their own products, limiting your options on complex deals.

Question 34

Are there special programs for doctors or high-income professionals?

Accepted Answer

Yes, physician loans offer 0-10% down with no PMI and high debt-to-income allowances. Several lenders have similar programs for attorneys and executives.

Question 35

What insurance is required for a jumbo loan?

Accepted Answer

Homeowners insurance with replacement cost coverage and umbrella liability are standard. Earthquake insurance isn't required but most buyers in California carry it.

Question 36

Can I lock my rate before finding a home?

Accepted Answer

Some lenders offer float-down locks, but they're rare on jumbo loans. Most rate locks happen after you're in contract with a specific property.

Los Altos Hills Mortgage Questions Answered by Local Brokers