Loading
Loading
OpenAI's new Mountain View office lease signals continued tech investment across the Valley. San Jose's median home price sits well above the conforming limit, making jumbo financing the standard path for most buyers here.
At 6.375% interest, a $1.25M jumbo loan on a $1.56M purchase carries a $7,793 monthly payment for principal and interest alone. That's the math for 80% financing with a 740 FICO score and a 30-day rate lock.
Jumbo lenders in this market demand tighter reserves and stronger credit than conventional loans. The tradeoff is access to capital when conventional ceilings don't reach — essential in San Jose's price range.
6.375%
Interest Rate
$7,793
Monthly P&I
700+
FICO Minimum
20% minimum
Down Payment
6–12 months
Reserves Required
45–60 days
Underwriting Timeline
Jumbo Loans in San Jose
Jumbo loans in San Jose start at 700 FICO, though 740+ gets better pricing. Down payment floors run 20% on primary residences; some lenders accept 15% but with rate penalties and higher reserves.
Santa Clara County's median household income of $159,674 supports homes in the $1.2M–$1.6M range comfortably on a jumbo loan. At that income level, a $1.25M loan with $7,793 monthly P&I fits within standard debt-to-income limits if other obligations stay modest.
Reserves matter more on jumbo than conventional. Lenders typically want 6–12 months of housing payment in liquid assets, not retirement accounts. That's $47K–$94K liquid for this scenario — a real gate for many buyers.
Local decision guide
Use this guide to connect jumbo loans eligibility, lender expectations, and local market factors before comparing payment options in San Jose.
OpenAI's new Mountain View office lease signals continued tech investment across the Valley. San Jose's median home price sits well above the conforming limit, making jumbo financing the standard path for most buyers here.
At 6.375% interest, a $1.25M jumbo loan on a $1.56M purchase carries a $7,793 monthly payment for principal and interest alone. That's the math for 80% financing with a 740 FICO score and a 30-day rate lock.
Jumbo lenders in this market demand tighter reserves and stronger credit than conventional loans. The tradeoff is access to capital when conventional ceilings don't reach — essential in San Jose's price range.
Jumbo lending in California is dominated by portfolio lenders and bank correspondents. Retail banks (Chase, Wells Fargo, Bank of America) offer jumbo but with stricter overlays. Brokers access a wider jumbo panel — typically 8–12 lenders per price band.
Underwriting timelines run 45–60 days for jumbo versus 30–40 for conventional. Appraisals are more rigorous, and employment verification often extends back two years. Self-employed borrowers face tighter scrutiny on tax returns and profit-and-loss statements.
Rate pricing on jumbo loans typically runs 0.25–0.5% above conforming at the same credit profile. San Jose's high-value market means competition among lenders is real, but reserves and credit quality still drive final approval odds more than rate shopping alone.
Jumbo financing makes sense in San Jose above $1.25M because conventional loans simply don't exist at that price. Below $1.25M, conventional PMI often costs less than the tighter jumbo reserves and higher rates — run both scenarios.
The real decision point is reserves. If you have 12 months of expenses liquid, jumbo approval odds improve dramatically. If you're scraping together 20% down and have minimal reserves, a conventional loan on a lower-priced property might close faster and cheaper.
If you're buying below $1.25M in San Jose, conventional financing with PMI often beats jumbo. Conventional requires only 5–10% down, no reserve minimums, and faster underwriting — even with PMI, the total cost may be lower.
Above $1.25M, jumbo is your only option. The comparison then shifts to rate-lock length and lender choice. A 30-day lock is standard; 45 or 60-day locks run higher rates but protect you if appraisal or underwriting delays extend your timeline.
OpenAI's 450,000-square-foot Mountain View lease expansion signals sustained tech hiring and payroll growth across the Valley. That employment stability supports home values and buyer confidence in neighborhoods near major tech corridors.
Asia Live's opening at Westfield Valley Fair and the Lunar New Year celebration reflect San Jose's cultural diversity and ongoing retail investment. Neighborhoods with strong dining and cultural amenities tend to hold value better during market downturns.
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.
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.
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.
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.
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.