Staring at a Marin home that sits above the usual loan limits? You are not alone. In many Marin neighborhoods, prices push past what Fannie Mae and Freddie Mac will buy, which means you may be looking at a jumbo loan. This guide breaks down how jumbo financing works in Marin, where the line sits between conforming and jumbo, the documents lenders expect, and smart steps to secure competitive terms. Let’s dive in.
Conforming vs. jumbo: the basics
Quick definitions
A conforming loan fits within Fannie Mae and Freddie Mac’s eligibility rules and dollar limits. A jumbo loan is any mortgage amount above the county’s conforming ceiling. Jumbos are underwritten by banks, credit unions, or investors using their own criteria, which are often more strict.
Why it matters in Marin
Many Marin homes list and sell above the conforming ceiling, especially in places like Mill Valley, Tiburon, Belvedere, Sausalito, Corte Madera, Larkspur, Kentfield, and Ross. Knowing where the limit sits helps you plan your budget, structure your offer, and set the right timeline for underwriting.
2024 Marin loan limits
For a one‑unit property, Marin County is a high‑cost area. The 2024 conforming ceiling for a one‑unit home is $1,149,825. Loans above that amount are generally considered jumbo. Limits for two‑ to four‑unit properties are higher and follow the Federal Housing Finance Agency’s schedule.
Because limits change every year, verify the latest number for Marin using the FHFA county lookup tool or the annual FHFA limits announcement. If you are buying a condo or single‑family home, you will most often use the one‑unit limit.
What jumbo lenders look for
Credit and history
Jumbo programs usually expect stronger credit than standard conforming loans. Many of the most competitive programs prefer scores in the mid‑700s or higher. Some lenders will approve lower scores at a pricing premium.
Income documentation
- W‑2 employees: two years of tax returns, recent pay stubs, and employer verification.
- Self‑employed or 1099: two years of personal and business returns, all schedules, year‑to‑date profit and loss statements, and possibly bank statements. Non‑QM or bank‑statement programs can help some self‑employed buyers, usually at higher cost.
For a clear overview of common documents, see the CFPB’s guide on what documents you need to get a mortgage.
Assets and reserves
Expect to document liquid assets across bank, brokerage, and retirement accounts. Jumbo lenders often require 6 to 12 months or more of reserves, measured in full mortgage payments including principal, interest, taxes, and insurance.
Debt‑to‑income ratio
Many jumbo programs prefer total debt payments at or below 43 to 45 percent of gross income. Some lenders may allow higher ratios with strong compensating factors, such as large reserves or a larger down payment.
Down payment and loan‑to‑value
A 20 percent down payment is common for competitive jumbo pricing. Some programs allow lower down payments but may require stronger credit, higher reserves, or higher rates and fees.
Appraisal and valuation
High‑value homes often need a more detailed appraisal. Some lenders may require a second appraisal, especially for unique properties, luxury homes, or locations with limited comparable sales. For condos, expect a review of HOA documents.
Title, insurance, and HOA
Lenders will require a full title search and standard homeowner’s insurance. In coastal or wildfire‑exposed areas in Marin, verify hazard and flood insurance availability and costs. If the property has an HOA, the lender will review the HOA’s financials and rules.
Timeline and complexity
Jumbo loans can take longer to close because of appraisal depth and asset verification. Plan for 30 to 45 days or more from contract to close. Complex income or appraisal issues can extend the timeline.
Jumbo options you may see
High‑balance vs. true jumbo
- High‑balance conforming: In high‑cost counties, conforming loans can go above the national baseline but still stay within the county ceiling. These follow Fannie/Freddie rules.
- True jumbo: Any loan amount above the county ceiling. Underwritten and priced by banks, credit unions, portfolio lenders, or investors.
Portfolio loans
Loans that a bank or credit union keeps on its books. These can offer flexible underwriting and relationship pricing for high‑net‑worth clients or complex income profiles.
Non‑QM and bank‑statement programs
Options for self‑employed buyers or those with nontraditional income. These often come with higher rates and fees but can solve documentation challenges.
Adjustable‑rate jumbos (ARMs)
ARMs may start with a lower initial rate than fixed jumbos, which can help payments early on. They come with later rate resets, so weigh your plans to hold or refinance.
Piggyback structures
An 80/10/10 (80 percent first mortgage, 10 percent second mortgage, 10 percent down) or a first mortgage plus a HELOC can reduce the size of the main loan or avoid jumbo classification. Consider the added costs and how the second lien affects qualifying.
Strategies to secure a competitive jumbo
- Shop multiple lenders. Compare regional banks, national lenders, credit unions, and mortgage brokers. Jumbo pricing and guidelines vary widely.
- Start preapproval early. Assemble full tax returns, asset statements, and clear explanations for large deposits. A complete file speeds underwriting and strengthens your offer.
- Improve credit and lower DTI. Pay down revolving balances, avoid new debt, and correct any errors on your credit report before you apply.
- Increase down payment and reserves. More equity and documented reserves reduce lender risk and can improve pricing.
- Consider relationship pricing. If you keep assets with a bank or credit union, you may qualify for better terms on a portfolio jumbo.
- Evaluate points and ARMs. Buying points can lower your rate. ARMs can help if you expect to sell or refinance within the fixed period.
- Build in the right contingencies. Jumbo underwriting can take longer. Use realistic financing and appraisal timelines, and consider pre‑underwriting before you write an offer.
- Use a mortgage broker when useful. Brokers can access niche jumbo and portfolio programs that retail branches may not advertise.
Costs, fees, and what to expect
- Rates and fees: Jumbos may carry higher rates or points than conforming loans, depending on market conditions and your profile.
- Appraisals: High‑value or unique homes can require a more detailed appraisal or a second appraisal.
- Mortgage insurance: There is no standard PMI market for jumbos. Lenders usually price risk into the rate and fees, or require larger down payments.
- Closing timeline: Plan for 30 to 45+ days. Build that into your offer strategy.
Marin‑specific checks before you offer
- Property taxes and assessments: Factor in California’s property tax structure, including Prop 13 base and local assessments. Ask your agent or title company to help you estimate annual taxes and any special assessments.
- Insurance: Coastal exposure, wildfire risk, and high property values can influence coverage and premiums. Confirm availability and cost early so there are no surprises during underwriting.
- Valuation complexity: Marin’s view homes and unique architecture can limit comparable sales. Be prepared for appraisal reviews or supplemental valuation work.
Your next steps
- Confirm the current loan limit for your property type and price range using the FHFA county lookup tool.
- Decide whether your target homes fall into high‑balance conforming or true jumbo territory.
- Gather full documentation early: two years of tax returns, W‑2s or business returns, asset statements, and explanations for large deposits.
- Compare several lenders and programs, including portfolio options and ARMs when appropriate.
- Set a realistic closing timeline, and plan your financing and appraisal contingencies before you write the offer.
If you want a calm, local game plan for jumbo financing in Mill Valley, Tiburon, Belvedere, and beyond, reach out. We help you prepare a strong, fully documented offer and navigate Marin’s higher‑value market with confidence. Connect with Beth Brody to get started.
FAQs
When does a Marin home purchase require a jumbo loan?
- When your loan amount exceeds Marin’s conforming one‑unit ceiling. For 2024 that ceiling is $1,149,825. Verify current limits each year with the FHFA lookup.
What is the current conforming limit for a one‑unit home in Marin?
- For 2024 it is $1,149,825. Always confirm the latest number for your closing year using the FHFA county lookup tool.
How much down payment do I need for a jumbo in Marin?
- Many buyers target 20 percent down for competitive pricing. Some programs allow lower down payments, often with stricter credit and reserve requirements or higher costs.
What credit score and reserves do jumbo lenders expect?
- Strong files often have mid‑700s credit scores and 6 to 12 months or more of reserves, though exact requirements vary by lender and borrower profile.
How long do jumbo loans take to close compared to conforming?
- Jumbo loans often take longer. Plan for 30 to 45+ days, and build realistic financing and appraisal contingencies into your offer.
Can I qualify for a jumbo with self‑employed or nontraditional income?
- Yes. Lenders may use full tax returns, business returns, and P&L statements. Some offer non‑QM or bank‑statement programs at higher cost.
Are there ways to avoid a jumbo loan amount?
- Some buyers use piggyback structures, like an 80/10/10 or a HELOC second lien, to reduce the first mortgage size. Review costs and underwriting impacts carefully.
How do taxes, HOA dues, and insurance affect qualifying?
- Lenders include property taxes, HOA dues, and insurance in your monthly payment. These carrying costs affect your debt‑to‑income ratio and reserves.
