Loading
Loading
OpenAI's new 450,000-square-foot Mountain View office lease signals continued tech expansion across Santa Clara County. At Morgan Hill's price point, a $1.56M purchase with 20% down runs $7,793 monthly on a 6.375% jumbo rate.
Santa Clara County's median household income of $159,674 supports homes in this range, though jumbo buyers typically earn $250K+ to comfortably carry the debt.
6.375%
Interest Rate
$7,793
Monthly Payment (P&I)
700
Minimum FICO
20% ($312K)
Down Payment Required
6-12 months
Liquid Reserves
45-60 days
Typical Close
Jumbo Loans in Morgan Hill
Jumbo loans in Morgan Hill start at 700 FICO, though 740+ is standard. You'll need 20% down minimum ($312K on a $1.56M purchase). Lenders require 6-12 months liquid reserves after closing—cash in savings, not retirement accounts.
Santa Clara County's $159,674 median household income is well below what jumbo buyers typically earn. Most jumbo applicants in this market make $250K–$400K+ annually.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in Morgan Hill.
OpenAI's new 450,000-square-foot Mountain View office lease signals continued tech expansion across Santa Clara County. At Morgan Hill's price point, a $1.56M purchase with 20% down runs $7,793 monthly on a 6.375% jumbo rate.
Santa Clara County's median household income of $159,674 supports homes in this range, though jumbo buyers typically earn $250K+ to comfortably carry the debt.
Jumbo loans in Morgan Hill start at 700 FICO, though 740+ is standard. You'll need 20% down minimum ($312K on a $1.56M purchase). Lenders require 6-12 months liquid reserves after closing—cash in savings, not retirement accounts.
California jumbo lending splits between portfolio lenders (banks holding loans) and correspondent networks (brokers selling to investors). Portfolio lenders often close faster but charge higher rates. Correspondents compete on price but take 45-60 days.
Jumbo underwriting runs tighter than conforming. Appraisals are stricter, employment verification is deeper, and cash reserves are non-negotiable.
Jumbo makes sense in Morgan Hill when you're buying at $1.5M+ and have strong reserves. At 6.375%, the rate pencils—you're not paying a jumbo penalty for staying under the conforming limit ($1.25M). Above $1.56M, jumbo is your only option.
The real cost is reserves. If you're stretching to 20% down and have no cash cushion, conventional at a lower price point beats jumbo every time. Jumbo borrowers need breathing room.
Conventional loans top out at $1.25M in Santa Clara County. Above that, jumbo is your only path. Conventional carries PMI below 20% down; jumbo has no PMI but demands 20% down and 6-12 months reserves.
If you're buying at $1.56M, you can't avoid jumbo. The trade-off is simple: no PMI, but tighter underwriting and mandatory cash reserves. Conventional below $1.25M would be cheaper if the property qualifies.
OpenAI's Mountain View office expansion signals sustained tech hiring across the county. Morgan Hill sits 30 minutes south of that growth, making it attractive to Silicon Valley workers seeking space without downtown prices.
Asia Live's new 13,000-square-foot food emporium at Westfield Valley Fair reflects the county's cultural diversity and retail investment. Lifestyle amenities support long-term home values in Morgan Hill's price range.
Principal and interest run $7,793 monthly at 6.375% on a 30-year fixed. Add property tax, insurance, and HOA if applicable. The scenario assumes a $1.56M purchase, $312K down (20%), 740 FICO, 30-day lock.
Yes. Jumbo lenders require 20% down minimum. That's $312K on a $1.56M purchase. You cannot go below 80% LTV on a jumbo loan in California.
700 FICO is the floor. Most lenders prefer 740+. At 740, you'll qualify at the best rates. Below 700, you'll face rejection or higher pricing.
6-12 months of housing payment in liquid savings. On a $7,793 payment, that's $47K–$94K in the bank after you close. Retirement accounts don't count.
Correspondent lenders typically close in 45-60 days. Portfolio lenders may close faster (30-45 days) but charge higher rates. Jumbo underwriting is stricter than conventional, so don't expect a 21-day close.