Shopping for a $1M-plus home in San Francisco and wondering if your mortgage will be a jumbo loan? You are not alone. In a market where many homes cross the million-dollar mark, understanding jumbo financing can help you move faster and compete with confidence. In this guide, you’ll learn what makes a loan “jumbo,” how underwriting differs from conforming loans, how to prepare before touring, and the questions to ask lenders so you can close on schedule. Let’s dive in.
Jumbo basics in San Francisco
A jumbo loan is any mortgage amount that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency for your county. Conforming loans meet Fannie Mae and Freddie Mac purchase limits. Jumbos do not. Because limits change annually and vary by county, you should always confirm the current number using the official FHFA conforming loan limit lookup.
In San Francisco and many nearby Bay Area ZIP codes, sales prices commonly exceed $1M. That means many purchase loans fall into the jumbo category. Property type matters too. Single-family homes and higher-priced condos frequently require jumbo financing. Multi-unit or unique properties can as well.
If you are buying a condo, expect more scrutiny at the project level. Lenders often review owner-occupancy ratios, HOA financials, pending litigation, and special assessments. A condo project that fails a lender’s review can delay or derail approval, so plan for this early.
How jumbo loans differ
Jumbo underwriting is more conservative than conforming underwriting. Here are the key differences you will notice.
Rates and lender behavior
Because jumbo loans are not sold to Fannie Mae or Freddie Mac, lenders price the added risk into their offers. Historically, jumbo rates have been somewhat higher than conforming rates, although that spread changes over time and by lender. Pricing also varies by lender type. Large banks, regional banks, credit unions, portfolio lenders, and mortgage brokers often show different rates and fee structures. Shop multiple quotes and ask each lender for all-in pricing that includes rate, points, and fees. For a plain-English review of mortgage basics, the Consumer Financial Protection Bureau’s guide is a helpful resource.
Credit score, down payment, and DTI
- Credit score: Competitive jumbo pricing often favors mid-700s credit scores or higher. Some lenders accept lower scores with strong compensating factors.
- Down payment: Many programs target 20 to 25 percent down. More conservative lenders or higher-risk scenarios may require 30 percent or more.
- Debt-to-income (DTI): Caps commonly land in the mid-40 percent range. Some lenders allow higher DTI if you bring strong reserves or other strengths.
- Compensating factors: Large liquid assets, strong credit, a bigger down payment, and a low DTI can help offset risk.
Reserves and assets
Jumbo programs frequently require reserves measured in months of mortgage payments. Six to twelve months of PITI is common. You will need clear documentation for large or recent deposits and the source of funds. Retirement accounts and brokerage accounts can count toward reserves if they are documented properly.
Appraisals and property standards
Appraisals on higher-priced or unique properties can be more detailed and sometimes require additional reviews. This can add time and cost. Condo projects face stricter review of budgets, litigation, and owner-occupancy. Tenancy-in-common interests, co-ops, or mixed-use properties usually face tighter lender overlays and fewer program options.
Other program differences
Some buyers use adjustable-rate jumbos or interest-only structures to increase flexibility. Expect lenders to run additional payment stress tests and underwriting reviews for these products. Jumbo loans typically do not use traditional private mortgage insurance, so lenders rely on higher down payments or portfolio structures to manage risk.
Get ready before you tour
A little preparation goes a long way in a competitive market like San Francisco. Use this quick action plan before you step into your first open house.
- Get a written preapproval from one or more lenders. Ask for program type, maximum loan amount, estimated rate and points, and the required reserves.
- Confirm the current county conforming limit using the FHFA lookup tool. If your price and down payment fit under that cap, you may not need a jumbo loan.
- Gather core documents early and verify liquid reserves. Be ready to document the source of funds for large deposits.
- Decide your payment and offer strategy. If you are competing with cash, consider a larger earnest deposit, a clear timeline, or a bridge or HELOC plan that shortens contingencies.
- Coordinate appraisal and condo review timing with your lender and agent so you can set realistic contingency dates in your offer.
Ways to strengthen your jumbo offer
Small financial moves can improve pricing and reduce underwriting friction.
- Increase your down payment to lower LTV. Many jumbo programs improve at 20 to 30 percent down or more.
- Reduce monthly debts to lower DTI. Paying off revolving balances can help.
- Improve your credit score before applying. Pay on time and lower credit card utilization.
- Keep funds seasoned and document transfers. Lenders will review bank statements for the past few months.
- Consider paying points or asking for a seller credit to buy down the rate if it helps the overall deal certainty.
For program selection, compare a national bank, a credit union, a mortgage broker, and a local portfolio lender. Portfolio lenders can be more flexible with condos, unique properties, or complex borrower profiles. If you are self-employed, ask about bank-statement or alternative documentation jumbo programs. Expect stricter pricing or higher reserves with these options.
In a multiple-offer scenario, strong preapproval letters with explicit conditions and proof of reserves reduce seller uncertainty. If you are considering waiving an appraisal contingency, weigh the risk carefully. A common middle path is an appraisal gap addendum that commits to cover a shortfall up to a set amount. If you have access to bridge financing or a HELOC, a cash-close strategy can make your offer more competitive while your jumbo loan finalizes.
Smart questions to ask a jumbo lender
Bring a focused set of questions to every lender conversation.
- What is the current conforming loan limit for my county, and will my requested loan exceed it?
- What interest rate and APR are you quoting for my profile? What points and origination fees are included?
- What is the typical rate spread between your jumbo and conforming products right now?
- Do you offer rate locks? What are the lock terms, extension costs, or float-down options?
- For my credit score, down payment, and DTI, which jumbo programs fit and which have the best pricing?
- What minimum credit score, maximum DTI, and maximum LTV are required for the program you recommend?
- How many months of reserves are required for my occupancy type?
- Do you underwrite and fund jumbos in-house or sell to investors, and how does that affect flexibility and timing?
- Do you have recent experience with San Francisco condo approvals and typical HOA issues here?
- What appraisal type will you require, and how long are appraisal turn times right now?
- Can gifted funds be used for my down payment, and what documentation is required?
- If I am self-employed, what income documentation will you accept, and will you consider bank-statement programs?
- What is the typical contract-to-close timeline for your jumbo loans, and what are common conditions that cause delays?
- Are there any prepayment penalties or lender-level insurance requirements I should know about?
Documents you need for a jumbo purchase
Having documents ready can shave days off your timeline. The CFPB explains mortgage documentation expectations for consumers in its mortgage application documentation overview. For jumbo loans in San Francisco, collect:
- Government ID and Social Security number
- Two years of federal tax returns with all schedules
- Two years of W-2s if you are employed
- Recent pay stubs covering 30 to 60 days
- If self-employed: two years of business returns, year-to-date profit and loss, business bank statements, and possibly a CPA letter
- Two to three months of bank statements for checking, savings, and brokerage accounts
- Retirement account statements and documentation of liquidable assets
- Documentation for large deposits and sources of funds, including gift letters if applicable
- A fully executed purchase agreement when available
- HOA documents for condos, including CC&Rs, budget, and recent meeting minutes
- Mortgage statements for any financed properties you already own
- Proof of down payment funds and evidence of sale proceeds if you are selling to fund the purchase
- Explanations for any recent bankruptcies, foreclosures, or significant late payments
Proactive additions that help: letters of explanation for employment gaps or irregular income, trust documents if assets are held in trust, and condo project information if you are targeting a condominium.
Timelines and common hurdles in SF
Preapproval can be completed in a few days if your documents are ready. Contract to close on jumbo loans often takes 30 to 45 days or longer, especially for condos or unique properties. Appraisal turn times and condo project reviews can add days. Build cushion into your contingency dates.
Common hurdles that delay or derail jumbo approvals include unseasoned large deposits, insufficient reserves, condo project issues, gaps in self-employment documentation, appraisal shortfalls on unique properties, and last-minute credit changes. Stay ahead of these by keeping funds stable, requesting HOA documents early, coordinating appraisal timing, and avoiding new debt during escrow.
San Francisco-specific considerations include HOA governance or litigation that can affect lender approval, typical earthquake risk that can shape your long-term insurance planning, and property condition issues in older homes that can influence appraisals and insurability. Budget for thorough inspections and be ready to discuss retrofit or repair scopes if needed.
How The BloomHomes Team helps
Buying with jumbo financing requires clear strategy and tight execution. You deserve a team that blends data, negotiation, and local experience across San Francisco and the East Bay. We pair analytical guidance with hands-on dealcraft so you can move decisively.
- Data and pricing clarity: We help you confirm the correct county limit and align price, down payment, and reserve targets with lender expectations.
- Lender coordination: We suggest lender types that fit your scenario, set realistic appraisal and condo review timelines, and sharpen your preapproval.
- Offer strategy: We structure terms that reduce seller uncertainty while protecting your financial safety, including appraisal gap strategies and contingency design.
- Property expertise: For condos and older homes, we anticipate lender review hot spots and help you source the right documents early.
Ready to talk through your jumbo plan and target neighborhoods? Connect with The BloomHomes Team for a local, data-driven strategy that helps you compete and win.
FAQs
What is a jumbo loan in San Francisco County?
- A jumbo loan is any mortgage that exceeds the county’s conforming loan limit set by the FHFA; verify the current number with the FHFA loan limit lookup.
How much down payment do jumbo loans usually require in San Francisco?
- Many programs target 20 to 25 percent down, while conservative scenarios or unique properties may require 30 percent or more.
Are jumbo mortgage rates higher than conforming in the Bay Area?
- Often yes, since jumbos are not sold to Fannie Mae or Freddie Mac, though the rate spread changes over time and varies by lender.
How do condo reviews affect jumbo loan approval in San Francisco?
- Lenders closely review HOA budgets, litigation, owner-occupancy, and assessments; issues in these areas can cause conditions, delays, or denials.
How long does a jumbo loan closing take in San Francisco?
- Plan for roughly 30 to 45 days from contract to close, with more time for condos, unique properties, or complex income documentation.
Can I use gifted funds for a jumbo loan down payment?
- Many lenders allow gifts with proper documentation, such as a gift letter and bank statements from the donor; ask your lender about specific requirements.
