Shopping in San Mateo and wondering if your mortgage will be a jumbo loan? You are not alone. In a high-cost county like San Mateo, many buyers cross the line where conforming financing ends and jumbo begins, which can change your path to approval, timing, and terms. In this guide, you will learn how to tell if your loan is jumbo, what lenders will expect, how rates and products differ, and how to build a strong pre-approval that helps your offer stand out. Let’s dive in.
Jumbo loan basics
A jumbo loan is a conventional mortgage that is larger than the conforming loan limit set by the federal regulator. Conforming loans meet the standards for purchase by Fannie Mae or Freddie Mac. Jumbo loans do not, so private lenders set their own rules and risk pricing.
Why this matters in San Mateo: home prices often sit above national benchmarks, so jumbo financing is common for single-family homes, many condos, and 2–4 unit properties. That means you should plan for lender-specific guidelines, more documentation, and potential timeline differences.
To check the current conforming limits, use the official FHFA conforming loan limit lookup. Limits vary by county and by property type, so confirm San Mateo County and your unit count before you run numbers.
Conforming vs jumbo: quick test
Use this simple three-step check for any San Mateo purchase:
Get the county limit. Confirm the latest San Mateo County conforming limit for your property type on the FHFA site.
Calculate your loan amount. Loan amount = purchase price minus your down payment.
Compare your loan to the limit. If your loan is greater than the county limit, it is a jumbo loan. If it is at or below the limit, it is conforming.
Easy examples using placeholders
These are illustrative, not market quotes. Always verify the current San Mateo County limit on the FHFA site and consult your lender.
- Example A: Entry single-family. If the conforming limit is L, a $1,200,000 purchase with 20% down equals a $960,000 loan. If $960,000 is greater than L, this is jumbo.
- Example B: Mid-market home. A $2,000,000 purchase with 20% down equals a $1,600,000 loan. Compare $1,600,000 to L to determine jumbo vs conforming.
- Example C: Condo purchase. A $1,100,000 condo with 10% down equals a $990,000 loan. Even if the loan is at or below L, the condo must be eligible for conventional financing. If the project is not warrantable, you may still need a portfolio or jumbo option.
- Example D: 2–4 unit. FHFA sets higher limits for multi-unit properties. Verify the 2–4 unit limit on the FHFA site, compute your loan, and compare to the correct multi-unit limit.
What lenders look for
Jumbo loans are underwritten to lender and investor standards. Guidelines vary, but many lenders set more conservative thresholds than conforming loans.
Credit, DTI, and down payment
- Credit score. Conforming loans can allow lower scores with certain conditions, while many jumbo programs price best for strong credit. Ask your lender where pricing tiers start to improve.
- Debt-to-income ratio. Automated systems on conforming loans may allow higher ratios when there are compensating factors. Jumbo lenders often cap ratios more conservatively and may require stronger reserves if your DTI is near the top of their range.
- Down payment. Conforming options can allow low down payments for eligible borrowers. Jumbo programs commonly expect 10% to 20% down, with best pricing at higher down payment levels.
For consumer guidance on comparing mortgage options and documenting your loan file, review the CFPB’s mortgage resources.
Reserves and assets
Jumbo lenders often require several months of reserves after closing, especially for second homes, investment properties, or complex income profiles. Expect more scrutiny of large deposits, the source of funds, and any gift money. Some lenders also have seasoning requirements for assets.
Income documentation
If you are self-employed or have variable compensation, plan for more detailed documentation. Many jumbo lenders ask for two years of tax returns, year-to-date profit-and-loss statements, and recent bank statements. Clear, organized documentation speeds underwriting.
Appraisal and property review
Jumbo lenders usually require a full appraisal and may request a second valuation at higher loan amounts. For condos, the project must meet warrantability standards. If a project is non-warrantable, you may need a portfolio or specialty jumbo lender and a larger down payment. For purchases involving an LLC or trust, be prepared for additional documentation and possible personal guarantees.
Rates, terms, and locks
Jumbo pricing is market-driven. Historically, jumbos sometimes cost more than conforming loans, but the spread changes with market conditions and borrower strength. Well-qualified buyers with low loan-to-value ratios and strong reserves often see the smallest difference between jumbo and conforming rates.
Common term options for jumbos include 30-year fixed, 15-year fixed, and adjustable-rate mortgages. Some lenders offer interest-only or custom amortization options. Adjustable-rate mortgages can be priced lower than fixed-rate jumbos, but they carry reset risk.
Rate locks matter because jumbo underwriting can take longer. Ask about lock length, extension costs, and whether a float-down option is available if rates improve before closing. For weekly rate context, review Freddie Mac’s rate survey and the Mortgage Bankers Association.
San Mateo scenarios to plan for
San Mateo’s market often moves fast, and many listings receive multiple offers. Align your financing strategy with your target neighborhood and property type.
- Single-family homes. Many buyers end up with jumbo financing even with substantial down payments. Run the quick test above early.
- Condos and townhomes. Verify project eligibility early. If a project has litigation, low reserves, or high investor concentration, it may be non-warrantable.
- 2–4 unit properties. FHFA sets higher conforming limits for multi-unit homes, but jumbo underwriting for these properties can be more conservative. Confirm the correct limit for the unit count on the FHFA site, then compare your loan amount.
- Market context. For state and regional trends, consult the California Association of Realtors for market reports and data.
Build a stronger pre-approval
A strong pre-approval reduces seller risk and can help you win in a competitive situation. In higher-priced markets where jumbos are common, clarity and speed are critical.
What to include in your package:
- A lender-issued pre-approval that states the product type, whether it is conforming or jumbo, the estimated loan amount, and maximum approved loan-to-value.
- A note on underwriting status. Fully underwritten or pre-underwritten approvals, where income and assets are already verified and only the appraisal and title remain, are strongest.
- Proof of funds for your down payment, closing costs, and reserves.
- Clear timelines. Ask your lender for an estimated clear-to-close date for a jumbo loan in the current market.
- Lender credibility. If your financing is jumbo, include lender contact information and a note on their capacity to close jumbo loans on time.
Offer tactics to consider, if appropriate:
- A shorter financing contingency period when supported by your lender’s workflow.
- A larger down payment or appraisal gap strategy if advised by your lender and agent.
- Direct lender-to-listing-agent communication to confirm progress and underwriting status.
Practical next steps
- Start lender conversations early. Compare banks, credit unions, and brokers. Jumbo programs vary, and a broker can present multiple options at once.
- Gather documents upfront. Organize tax returns, W-2s or 1099s, bank and retirement statements, employment verification, and explanations for large deposits. If self-employed, prepare a year-to-date P&L and two years of business and personal returns.
- Ask detailed questions. What is the typical time to clear to close on jumbos right now? How many months of reserves are required for your profile? What are the condo review requirements? What lock lengths and float-downs are available?
- Track market context. For current rate trends, check Freddie Mac and the MBA. For statewide market data, review the California Association of Realtors.
- Verify limits before offers. Always confirm the latest San Mateo County conforming limit on the FHFA site for your property type.
If you want a smooth path from pre-approval to keys, partner with a local advisor who coordinates lender communications, aligns timelines, and helps you present a low-risk offer. To discuss your plan for a San Mateo purchase or sale, connect with Cheryl Bower.
FAQs
How do I know if my loan is jumbo in San Mateo?
- Compare your expected loan amount to the San Mateo County conforming limit on the FHFA site. If your loan is greater than the county limit for your property type, it is a jumbo loan.
Do jumbo loans cost more than conforming loans?
- Often, but not always. Pricing depends on market conditions and your profile. Well-qualified borrowers with strong credit, larger down payments, and ample reserves may see smaller differences.
How much down payment do jumbo lenders expect?
- Many jumbo programs expect 10% to 20% down, with more favorable pricing at higher down payment levels. Requirements vary by lender, occupancy type, and loan size.
What extra documents will a jumbo lender ask for?
- Expect detailed income and asset verification, potential reserve requirements, and more scrutiny of large deposits. Self-employed borrowers often need two years of tax returns and a current P&L. See the CFPB’s guidance for preparation tips.
Are appraisals and condo approvals different for jumbos?
- Yes. Jumbo loans typically require full appraisals and sometimes second valuations for very large loans. Condo projects must meet warrantability standards or you may need a portfolio or specialty jumbo option.
How long do jumbo loans take to close?
- Timelines vary by lender. Jumbo underwriting can take longer due to manual reviews and extra documentation. Ask your lender for a realistic clear-to-close estimate before writing your offer.
Where can I find current conforming limits and market data?
- Check the FHFA site for county-by-county limits. For rates and market context, use Freddie Mac’s rate survey, the Mortgage Bankers Association, and statewide reports from the California Association of Realtors.
