Jumbo loans for high earners are simply loans that exceed the conforming loan limit set each year by the Federal Housing Finance Agency. In most of the country that limit is lower, but Santa Clara, Alameda, and San Mateo counties are designated high-cost areas with a higher conforming limit — and Bay Area home prices still routinely exceed even that higher number. In practice, this means most buyers in Fremont, Milpitas, San Jose, Santa Clara, Union City, and Newark are taking out a jumbo loan whether they realize it or not.
How qualifying for a jumbo loan is different
Jumbo loans aren’t backed by Fannie Mae or Freddie Mac, so lenders hold more of the risk themselves and underwrite accordingly. Compared to a conforming loan, expect:
- A larger down payment, often 10–20% or more, though some lenders offer lower down payment jumbo programs to well-qualified borrowers
- A stricter debt-to-income ratio requirement
- Larger cash reserve requirements — sometimes six to twelve months of mortgage payments in verified reserves
- A higher minimum credit score than a comparable conforming loan
See the Consumer Financial Protection Bureau’s explanation of jumbo loans for the federal-level details on how these loans are classified.
Where your income comes from matters
If part of your qualifying income comes from RSUs or other stock compensation, lenders often need a longer documented history before counting it — see Buying With RSUs and Stock Compensation. If you’re combining two incomes with a partner, Two-Income Households: Combining Buying Power explains how lenders add that up for a jumbo application specifically.
Getting pre-approved for a jumbo loan
The pre-approval process for a jumbo loan generally takes longer than a conforming loan because of the extra documentation involved. Start early — see Mortgage Pre-Approval Explained for the general process, and ask your loan officer specifically how their jumbo underwriting timeline compares to their conforming timeline.
For the rest of the tech-buyer picture, return to the Tech Employee’s Guide to Buying in Silicon Valley, or see the general Complete Buyer’s Guide for the full purchase process once your financing is lined up.
Shopping rates across lenders
Jumbo loan rates and terms vary more between lenders than conforming loan rates do, because each lender sets its own risk appetite for these larger loans. It’s worth getting quotes from at least three lenders, including at least one credit union or regional bank alongside larger national lenders, since smaller institutions sometimes offer more competitive jumbo terms to strong borrowers. Ask each lender directly about their reserve requirements and whether they offer any rate discounts for existing account holders or larger deposit relationships.
Selling a home to fund your jumbo purchase?
If a jumbo purchase depends on selling a current home for part of your down payment, get a free estimate at the Home Value Estimator and see the Seller’s Guide for how to time the two transactions.
This page is general information, not lending advice. Jumbo loan qualification requirements, down payment minimums, and reserve requirements vary significantly by lender — consult a licensed mortgage professional for terms specific to your situation.
Laxmi Penupothula · Intero Real Estate · DRE #02047105 · Serving Fremont, Milpitas, San Jose, Santa Clara, Union City & Newark. Equal Housing Opportunity.