Are you hearing the term “jumbo loan” while house hunting in Corte Madera or San Rafael and wondering what it really means for you? In Marin County’s high-cost market, jumbo financing is common, and the details can feel complex when you are trying to move fast on a great home. You want clarity on how these loans work, what lenders expect, and how to structure a strong offer that sellers trust. In this guide, you will learn the essentials of jumbo loans in Marin, what documentation to prepare, how pricing works, and practical steps to keep your closing on track. Let’s dive in.
Jumbo loan basics in Marin
Why jumbos are common in Corte Madera and San Rafael
Corte Madera and San Rafael sit in Marin County, a high-cost area with limited inventory, proximity to San Francisco, and strong demand from high‑income buyers. Many single‑family home prices exceed the local conforming loan threshold. That means a large share of purchases require jumbo financing rather than standard conforming loans.
Local property traits can add complexity. Waterfront or custom homes, condos with detailed HOA rules, and lots with unique environmental or regulatory factors can lead to extra appraisal and title review. Understanding these realities helps you plan your financing and timelines.
What counts as a jumbo in 2024
A jumbo loan is any mortgage amount that exceeds your county’s conforming loan limit set by the Federal Housing Finance Agency. Loans at or below that limit follow Fannie Mae and Freddie Mac guidelines and often have wider product availability. Loans above the limit are non‑conforming and are underwritten by jumbo or portfolio lenders with their own rules. Always confirm the current FHFA limit for Marin County and check live lender pricing before you write an offer.
Underwriting by price band
Lender requirements vary by institution, but these are common patterns in Marin.
Conforming-level loans
- Typical profile: Salaried borrowers with strong credit and full documentation.
- Down payment: As low as conventional minimums with mortgage insurance, though many local buyers put 10 to 20 percent down.
- Reserves: Often 2 to 6 months of principal, interest, taxes, and insurance.
- Speed: Usually the fastest, with competitive pricing and more chances for appraisal waivers on qualifying files.
Low‑jumbo up to about 2 million
- Borrower profile: High‑income buyers with clean documentation; competitive pricing is common.
- Credit scores: Many lenders look for 700 plus, with best pricing around 740 plus.
- Down payment and LTV: Often 10 to 20 percent down; some lenders allow lower down payments at a rate premium and with stricter income and asset requirements.
- Reserves: Commonly about 6 months PITI, adjusted for strengths in your file.
- Documentation: Two years of tax returns, W‑2s or 1099s, recent pay stubs, verification of employment, bank statements, and explanations for large deposits.
- Mortgage insurance: PMI is less common in this tier; lenders may use pricing or second liens to manage risk.
Mid‑range jumbo from about 2 to 5 million
- Borrower profile: High‑net‑worth individuals, executives, self‑employed buyers.
- Product mix: More portfolio or non‑agency programs and fewer agency‑style jumbos.
- Credit and liquidity: Lenders often expect 740 plus credit and place heavier weight on liquid reserves, commonly 6 to 12 months or more of PITI.
- Down payment: Often 20 to 30 percent. Higher LTVs may be possible with strong compensating factors at higher rates.
- Underwriting flexibility: Alternative documentation like bank‑statement or asset‑depletion programs may be available at higher pricing and with stricter reserve rules.
- Appraisal: Unique homes may require deeper valuation reviews, sometimes with multiple opinions.
Ultra‑jumbo above 5 million
- Borrower profile: Ultra‑high‑net‑worth buyers; some transact in cash or through private banks.
- Product availability: Mostly portfolio or private bank programs with bespoke underwriting.
- Requirements: Larger down payments, substantial liquid reserves, full verification of income and assets, and longer approval timelines.
- Appraisal and closing: Complex properties and multi‑layer underwriting can extend the process.
Product options and alternatives
- Portfolio loans: Held by the lender rather than sold, with more flexibility for unique properties or income profiles.
- Bank‑statement programs: Qualify self‑employed borrowers using business or personal bank statements, often at higher rates and fees.
- Asset‑depletion loans: Convert investment and retirement assets into qualifying income for underwriting purposes.
- Interest‑only options: Available in the jumbo space but less common; understand the payment change when amortization begins.
- Bridge financing or HELOC: Useful if you need to buy first and then sell, or to present a cleaner offer and finalize long‑term jumbo financing later.
Rates, pricing, and timing
What drives pricing
Jumbo rates generally follow broad market trends, but lender appetite can shift. Your rate is most sensitive to:
- Credit score and history.
- Loan‑to‑value ratio and occupancy type.
- Loan amount and program structure.
- Documentation style and income stability.
- Reserves, property type, and appraisal risk.
You should check live lender rate sheets for current quotes. Industry reports can help you understand the direction of rates, but they are not retail pricing.
How financing strength shapes negotiations
In multiple‑offer situations, sellers want confidence that you will close. A full‑doc pre‑approval with verified income, assets, and credit is stronger than a quick pre‑qualification. Larger or unique homes are more likely to face valuation questions, and appraisal delays can slow closing. In Marin, jumbo files can take longer than conforming loans because of documentation depth and property review, sometimes adding 1 to 3 weeks to the timeline. A strong file and proactive communication help you compete with cash offers and keep your deal moving.
How to prepare and speed closing
Smart questions to ask your jumbo lender
- Is this loan sold to investors or held in portfolio, and how does that affect flexibility and speed?
- What exact documentation will you need for my profile, and when should I provide it?
- What LTV, debt‑to‑income, and reserve rules apply at my target price and property type?
- What rate lock terms do you offer, for how long, and what are extension fees?
- Are there appraiser or condo project requirements that could slow approval?
- Do you offer bridge, bank‑statement, or asset‑depletion options if needed for my file?
Documents to gather for a full‑doc pre‑approval
- Two years of federal tax returns, including any K‑1s and 1099s, plus W‑2s if employed.
- Recent pay stubs for the last 30 to 60 days, and employer verification if required.
- Two to three months of bank and asset statements showing down payment funds and required reserves.
- Retirement account statements if used for reserves, with rules on access and seasoning understood.
- Government ID and signed authorization to pull credit.
- Short explanation letters for large deposits, employment gaps, or prior credit issues.
Condo and unique property notes
- For condos, your lender may review HOA bylaws, budgets, reserves, and master insurance. Some lenders require minimum owner‑occupancy or reserve levels for the project.
- For unique or high‑value properties, expect detailed appraisal review. Share listing details and any HOA documents with your lender early to surface potential issues.
Make your offer stand out
- Get a true pre‑approval. Provide full income and asset documentation upfront so your letter carries weight.
- Share proof of reserves. Verified liquidity can ease seller concerns, especially at higher price points.
- Be realistic on appraisal. Consider timing and valuation risk for unique homes before waiving protections.
- Use earnest money strategically. A larger deposit can signal commitment and financial strength.
- Plan your timeline. Build in time for jumbo underwriting and appraisal. Align closing dates with your lender’s estimated schedule.
Next steps
A jumbo purchase in Corte Madera or San Rafael is very achievable with the right plan. Start by aligning your budget and documentation, then choose a lender and program that fit your profile and property type. Stay proactive on appraisal, rate locks, and reserves so you can write a confident, competitive offer.
If you want a clear, step‑by‑step strategy tailored to Marin’s market and your goals, connect with Emily Schaffer. Schedule a private consultation to map your timeline, refine your budget, and move forward with confidence.
FAQs
What is a jumbo loan in Marin County?
- A jumbo loan is any mortgage amount above the county’s conforming loan limit, which moves each year based on FHFA guidance and local high‑cost rules.
Why are jumbo loans common in Corte Madera and San Rafael?
- Home prices often exceed the conforming threshold in these high‑demand, low‑inventory neighborhoods, so many buyers need jumbo financing.
How much should I plan for a jumbo down payment?
- Many lenders look for 10 to 20 percent down in lower jumbo tiers and 20 to 30 percent for larger loans, with variations based on your profile.
Do jumbo loans take longer to close?
- They can, due to deeper documentation and appraisal review. Expect that jumbos may add 1 to 3 weeks compared with many conforming loans.
What credit score do I need for a jumbo loan?
- Many lenders want 700 plus credit, with best pricing around 740 plus, although requirements vary by program and loan size.
Can I get an interest‑only jumbo loan?
- Some lenders offer interest‑only options in the jumbo market, but they are less common and require careful planning for future payment changes.
