Jumbo and Super Jumbo Loans in the Bay Area and Sonoma County

A jumbo loan is a mortgage that exceeds the conforming loan limit for the county where the property is located and the number of units it has. The Federal Housing Finance Agency sets those limits each year, and loans above them cannot be sold to Fannie Mae or Freddie Mac. Instead, they are underwritten under non-agency guidelines that vary by investor.

Across the Bay Area and Sonoma County, ordinary single-family homes routinely require loan amounts that cross into jumbo territory. But not every large loan is jumbo: high-cost counties have a middle tier that remains conforming. Learn how jumbo, high-balance, and conforming loans differ.

The loan amount, not the purchase price. This is the most common misunderstanding I correct, and it can be costly.

For example, a buyer purchasing a $1.3 million home in Sonoma County with an $850,000 loan is below the county's 2026 limit of $897,000. The loan is conforming even though the purchase price is well above the limit. Because your down payment changes the amount you borrow, it can move the loan from one category to another. Run those numbers before you write an offer, not after.

Yes. The conforming limit rises with each additional unit. The table above shows one-unit limits only; duplexes, triplexes, and fourplexes have higher limits.

This matters in cities such as San Francisco and Oakland, where two-to-four-unit properties are common. Buyers sometimes assume a multi-unit purchase will automatically require jumbo financing when the higher unit limit may keep it conforming. Check both the county and the unit count before choosing a loan category.

There is no universal industry definition. In my practice, super jumbo begins above $3 million, and we place non-agency financing up to $10 million.

As the loan amount rises, fewer investors participate. Those that remain may price risk differently, require more post-closing reserves, or ask for a different down-payment structure. A $3 million loan can be entirely workable, but the field of programs narrows and the complete borrower profile matters more. The best available structure depends on which investors are active and how your credit, income, assets, and property fit their guidelines.

Five things drive most jumbo approvals: credit, down payment, debt-to-income ratio, post-closing reserves, and documented income.

Because jumbo loans are not sold to Fannie Mae or Freddie Mac, there is no single rulebook. Each investor sets its own guidelines, and the differences can be significant. That can also work in your favor. I place jumbo financing with multiple investors rather than relying on a single portfolio, so a file that falls outside one investor's debt-ratio or income rules may fit another. Where your file lands depends on how all five pieces work together.

There is no universal minimum, but the practical floor for many current jumbo programs falls between 680 and 700. More investors become available between 700 and 719, and 720 is strong by many jumbo standards.

Pricing tends to improve in tiers rather than continuously. The first meaningful improvement often arrives at 740, with additional tiers at 760 and 780. Above $3 million, minimums may rise: many investors prefer 720 to 740, and some will not go below 740. If your score is near a tier boundary, find out before you apply because even a small difference may affect your options and pricing.

Certain jumbo programs allow as little as 10.1 percent down, but that is a program-specific floor, not a universal requirement. The right amount depends on the loan size, property, credit profile, reserves, and investor.

More money down can open additional programs and improve pricing. It can also bring the loan below the county's conforming limit. Above $3 million, fewer investors participate and some require more equity. This makes the down payment a planning decision, not simply the difference between the price and the maximum you can borrow. I can help you model the options before you write an offer.

Potentially. Some jumbo investors currently allow 10.1 percent down without separate monthly mortgage insurance. Availability, pricing, and qualifying requirements vary by investor and borrower.

This is a good example of why access to several investors matters more in jumbo lending. A lender working from one portfolio can give you only that portfolio's answer. At Rate, I can compare programs from dozens of jumbo investors and determine whether one fits your credit, income, reserves, property, and loan amount. The absence of a separate mortgage-insurance charge does not mean the additional risk has no effect on the overall loan terms.

Your debt-to-income ratio is your total monthly debt payments divided by your gross monthly income. Forty-three percent is a common ceiling for jumbo financing, and 45 percent is available from many investors when the rest of the file is strong.

Some programs allow 49 or 50 percent with substantial reserves, excellent credit, a larger down payment, and stable documented income. Tolerance generally tightens as loan size rises. Above $3 million, 40 to 43 percent is more common, although some investors allow 45 percent where liquidity and the rest of the profile are exceptional. These are current program ranges, not universal limits.

Yes. Vested retirement and brokerage assets can generally count toward reserves, although investors may value them differently.

Six months of principal, interest, taxes, and insurance is a common starting point, while 12 months becomes more typical as the loan amount increases. Other financed properties may raise the requirement. Above $3 million, 12 months is often near the minimum, 18 months is common, and the largest loans can require 24.

Retirement accounts rarely count at face value. A common treatment is about 70 percent of the vested balance, with investor haircuts ranging from roughly 60 to 80 percent. Brokerage assets may also be discounted depending on the holdings and program. Non-vested balances do not count.

Yes. For many Bay Area borrowers, variable and equity compensation is a significant part of the file.

Many jumbo investors want two years of documented receipt, supported by W-2s, paystubs, brokerage statements, and vesting schedules. Restricted stock unit income is typically averaged across the previous 24 months to smooth uneven grants and vesting dates. Investors also evaluate how much comparable compensation remains scheduled to vest, with many looking for roughly two more years, and they generally value shares at the lower of the current price or the 52-week average rather than a temporary market high.

Bonuses and commissions can also qualify, but the required history and calculation vary with the investor, employment circumstances, and income trend. The documentation should be reviewed before you rely on the income in an offer.

Yes. The issue is often not whether the business earns money, but whether the tax returns reflect cash flow that an investor will recognize for mortgage qualification.

Beyond full-documentation loans, bank-statement and profit-and-loss-only programs may qualify you from deposits or business financials rather than tax returns. The best approach depends on your entity structure, ownership percentage, expense pattern, and how you file. Read more about mortgage qualification beyond tax returns and bank-statement loans for self-employed borrowers.

Yes. Asset-depletion programs qualify you from what you hold rather than what you earn. They can fit retirees, borrowers between roles, and people whose wealth sits in accounts rather than paychecks.

The investor starts with eligible assets, then subtracts the down payment, closing costs, required reserves, and applicable penalties or discounts. The remainder is divided by a program-specific period, often between 60 and 240 months, to produce monthly qualifying income. The assets must generate enough income under that calculation while leaving adequate liquidity after closing. Eligible holdings may include checking, savings, money market, CDs, brokerage accounts, stocks, mutual funds, and accessible trust assets.

Possibly, but not on terms anyone can guarantee at closing. If you are planning around a large vest or bonus, say so at the start, because not every investor allows a recast and it changes which programs I target.

A recast re-amortizes the loan around a lower balance after a large principal payment, keeping the rate and term while reducing the payment. On jumbo financing that decision belongs to whoever is servicing the note when you ask, and servicing can transfer after closing, so the party who answers may not be knowable on the day you fund. Expect a fee where it is permitted, because the servicer records a modification of the original terms with the county. Build this into the plan up front rather than counting on flexibility later.

Yes. The building is underwritten along with you, on both conforming and jumbo financing.

Depending on the program, project review may consider the association's budget and reserves, deferred maintenance, owner occupancy, concentration of ownership, insurance, and litigation. Those issues are separate from your personal finances. A strong borrower can still need a different investor or, in some cases, a different building. If you are considering a specific condominium, review the association early enough to uncover a financing issue before you become committed to the unit.

Permits, legal use, market acceptance, and comparable sales all matter. A permitted, legally established accessory dwelling unit may contribute value and may allow rental income to be considered, depending on the program.

Unpermitted space does not automatically receive the same treatment as permitted living area. The appraiser evaluates the work's quality, legality, market acceptance, and contributory value, while the investor decides whether the property fits its guidelines. Acreage introduces additional questions, particularly in Sonoma County, where outbuildings, agricultural use, wells, septic systems, and limited comparable sales can affect value and eligibility. Review the permit history and property characteristics before you go under contract.

Sometimes. A second appraisal is not universal, but it becomes more common as the loan amount rises. The trigger often falls between $1.5 million and $3 million, depending on the program, so confirm the requirement early because it affects cost and timing.

If the home appraises below the purchase price, the lender bases the loan on the lower figure. You can renegotiate the price, bring the difference in cash, or challenge the appraisal with better comparable sales when the report missed relevant information. In a market where non-contingent offers are common, decide how you would handle a short appraisal before you write the offer.

Both are available. The right choice depends more on how long you expect to hold the loan than on the loan's size.

Common adjustable-rate mortgage structures include 7/6 and 10/6: the initial rate is fixed for seven or ten years, then adjusts every six months. An ARM can make sense if you expect to sell or refinance during the fixed period, or if a liquidity event will let you reduce the balance substantially before the first adjustment. Compare the adjustment caps, index, and margin as carefully as the initial rate. If you expect to keep the loan long term and value payment certainty, a fixed rate provides it.

You pay only interest for an initial period, commonly five or ten years. After that, the loan converts to fully amortizing payments over the remaining term. Depending on the investor, interest-only payments may be available with fixed- or adjustable-rate products.

The important qualification point is that investors generally do not use the lower interest-only payment to determine how much you can borrow. They typically underwrite your ability to make the fully amortizing payment after the interest-only period ends. Interest-only financing can improve cash flow after closing, but it does not usually increase borrowing capacity.

A typical package includes 30 days of paystubs, two years of W-2s, two months of bank and brokerage statements, identification, credit authorization, and tax returns where required.

Jumbo files may also require full documentation of accounts you are not using for the down payment because they establish post-closing reserves. Equity compensation may require grant statements, vesting schedules, and proof of historical vesting. Business or partnership income can require underlying returns when a K-1 is not enough. If you own other real estate, expect to provide mortgage statements, property-tax bills, insurance, association dues, and leases where rental income is being used.

A well-prepared jumbo purchase can often close in roughly 17 to 21 days. The more important advantage, however, is getting pre-underwritten before you make an offer.

Pre-underwriting means your income, assets, and credit are reviewed in advance rather than after you enter contract. That can materially strengthen an offer in competitive Bay Area and Sonoma County markets. Once you are in contract, the remaining work is primarily property-related: appraisal, preliminary title, insurance, and condominium project approval where applicable. California insurance deserves particular attention because an unexpected premium can affect qualification. Read why insurance is the new interest rate.

Yes. Several structures may let you buy before you sell.

Rate Bridge currently allows eligible borrowers to access up to 85 percent combined loan-to-value against a departing residence, with bridge funds delivered when the new home closes. Availability and terms are subject to current program requirements. A home equity line of credit may accomplish something similar. Some short-term bridge programs can qualify against substantial equity, with the expectation that you refinance or repay the financing after the departing residence sells.

Another option uses no bridge: purchase with available assets, sell afterward, then apply the proceeds. Whether the existing mortgage can be excluded from your debt-to-income ratio depends on the investor, sale status, and transaction structure. A bridge loan or home equity line can create an additional obligation, so compare the complete financing plan rather than the purchase loan alone.