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Jumbo Loans in Santa Cruz
Santa Cruz real estate prices push most buyers into jumbo territory. The conforming limit sits at $806,500 in 2025, which doesn't cover much here.
Ocean-view homes, Westside properties, and anything near downtown typically need jumbo financing. Even fixer-uppers in desirable neighborhoods often exceed conforming limits.
The local market rewards brokers who know jumbo underwriting cold. Portfolio lenders price differently than the big banks selling to investors.
You need 700+ credit for competitive jumbo rates. Some lenders start at 680, but expect pricing hits.
Plan on 10-15% down minimum. Lenders want 20% for properties over $2 million.
Reserve requirements run 6-12 months of payments after closing. Santa Cruz County jumbo underwriters look hard at tech income volatility.
Debt-to-income ratio caps at 43% with most lenders. Some portfolio lenders stretch to 50% for strong borrowers with substantial assets.
Big banks dominate Santa Cruz jumbo lending but rarely offer the best terms. Their underwriting moves slow and their pricing stays rigid.
Portfolio lenders hold loans in-house instead of selling them. They care more about your full financial picture than checkbox requirements.
Credit unions like Tech CU sometimes price aggressively for jumbo loans under $1.5 million. They want the relationship, not just the loan.
We compare rates across 200+ wholesale lenders weekly. Pricing spreads on jumbos can hit 0.75% between lenders for identical borrower profiles.
Santa Cruz jumbo deals close fastest when we structure them around equity compensation. Tech workers with RSUs need lenders who understand vesting schedules.
Adjustable-rate jumbos make sense if you're not keeping the property long-term. Most buyers here refinance or sell within seven years anyway.
Interest-only jumbos work for buyers with lumpy income. Coast professionals and business owners use them to manage cash flow without selling investments.
Appraisals kill more Santa Cruz jumbo deals than credit issues. Unique properties near the water struggle to find comps, and conservative appraisers undervalue everything.
Conventional loans max out at $806,500 in Santa Cruz County. Jumbo loans pick up where conforming limits stop.
Jumbo rates run 0.25-0.50% higher than conforming rates. That gap narrows on loans over $1.5 million where fewer lenders compete.
Adjustable-rate jumbos start 0.50-1.00% lower than fixed jumbos. The initial savings matter more on larger loan amounts.
Interest-only jumbos reduce payments 20-30% versus fully amortizing loans. You're not building equity, but you're freeing up capital for other investments.
Earthquake insurance doesn't affect loan approval but lenders notice when it's missing. Properties near the San Andreas fault raise questions during underwriting.
Westside homes and anything in the coastal zone face strict building restrictions. Lenders price this risk into rates and reserve requirements.
UCSC area properties with student rental potential need extra documentation. Some jumbo lenders won't touch anything zoned for multiple units.
Fire insurance costs spiked after recent California wildfires. Budget $3,000-$8,000 annually for properties in hillside areas, and expect lenders to verify coverage before funding.
Jumbo loans start at $806,501 in Santa Cruz County. Anything above the 2025 conforming limit requires jumbo financing.
Yes, but expect higher rates and mortgage insurance on some programs. Most lenders prefer 15-20% down for competitive pricing.
No, but 700+ credit gets you the best rates. Some portfolio lenders approve 680 scores with compensating factors like high income or assets.
Usually by 0.25-0.50%, though the spread varies by lender and loan amount. Rates vary by borrower profile and market conditions.
Expect 30-45 days with complete documentation. Appraisal delays on unique coastal properties add another 1-2 weeks frequently.
Absolutely, but you'll need two years of tax returns and strong financials. Portfolio lenders focus more on assets than W-2 income documentation.
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.