Question 1

What's the monthly payment on a $1.25M jumbo loan at today's rate?

Accepted Answer

Principal and interest run $7,793/month at 6.375% on a $1.25M loan with 20% down. Add property taxes, insurance, and HOA fees for your total housing cost. This scenario assumes 740 FICO, 30-day lock, 0.472 discount points.

Question 2

Do I need 20% down for a jumbo loan in San Jose?

Accepted Answer

Yes — 20% down is the standard minimum for jumbo loans. Some lenders accept 15%, but rates jump 0.25–0.5% and reserve requirements increase. 20% down keeps you competitive on pricing and approval odds.

Question 3

What credit score do I need for jumbo financing?

Accepted Answer

700 FICO is the floor, but 740+ gets the best rates. Below 700, approval becomes difficult and rates rise significantly. Self-employed borrowers often need 760+ to offset income documentation risk.

Question 4

How much do I need in reserves for a jumbo loan?

Accepted Answer

Most jumbo lenders require 6–12 months of housing payment in liquid savings. For a $7,793 P&I payment, that's $47K–$94K liquid. Retirement accounts don't count — lenders want cash or money-market funds.

Question 5

How long does jumbo underwriting take?

Accepted Answer

Plan for 45–60 days from application to clear-to-close. Appraisals and employment verification take longer than conventional. If you're self-employed, add 2–3 weeks for tax-return review and CPA letters.

Jumbo 30-Year Fixed Mortgages in San Jose