California Jumbo Loans

A California Jumbo Loan is a larger home mortgage that exceeds a set amount in the amount borrowed. Any home loan over the limit or threshold in California is considered a Jumbo Loan. Other limits for Duplexes and more are below:

No. of Units	Loan Amounts to:
1 Unit (SFR, Home or Condo)	Varies By County
2 Units (duplex)	Varies By County
3 Units (triplex)	Varies By County
4 Units (4-plex)	Varies By County

The NEW limits have been established:

Los Angeles County is $729,000

San Diego County is $697,000

One should note that California Jumbo Loans have a slightly higher interest rate than the smaller conventional or conforming home loans. This is because the mortgage lender takes more risk for the higher amount. Depending on the area of California the property is in, $359,650 might not buy you very much. So many of the loans being taken today in California are "California Jumbo Loans". It has turned into a common term with lenders and borrowers because of the fact that so many homes are being purchase at prices above the threshold and loans are needed for these homes.

The benefit of the California Jumbo loan is the fact that you CAN still borrow more money over the price limit and it is still affordable. The rate bump that is charged by the lender is not so significant that it will price you out of the housing market. In fact, if you weren't told it was included, you might not realize it was there. Other factors like great credit scores and down payments will have more of an affect in your rate then the Jumbo loan. It is really just a classification of the loan size.

Have you been looking to borrow more then the 2008 conventional or conforming home loan limit for your next home purchase? No problem, contact us today and we can get you better specifics on which California Jumbo Loan programs are available to you and let you choose the best option.

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