Shopping for a home in Tiburon and wondering if you’ll need a jumbo loan? You’re not alone. Many Marin buyers look at listings that sit above standard loan limits, and the financing rules can feel more complex. In this guide, you’ll learn what counts as a jumbo loan, how underwriting differs from conforming loans, which documents to prepare, and how local lenders in Marin typically handle high-balance deals. Let’s dive in.
What counts as a jumbo loan
A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency. Conforming loans can be purchased by Fannie Mae and Freddie Mac; jumbo loans cannot. That’s why pricing and qualifying rules for jumbos vary by lender.
Before you shop, verify the current year’s conforming limits for your property type. Limits change annually and depend on the number of units. You can check the latest figures on the FHFA’s page for conforming loan limits. For reference on agency standards, you can also review Fannie Mae’s loan limits overview and Freddie Mac’s loan limits page.
Common terms you’ll hear:
- Jumbo / non-conforming: Loan amount above the FHFA limit.
- Super-jumbo / high-balance: Informal terms some lenders use for larger loans, often several million dollars.
- Portfolio loan: A loan the lender keeps on its books, allowing more flexible underwriting.
Why jumbos are common in Tiburon
Tiburon and greater Marin County are high-value markets with coastal and hilltop properties, view homes, and design-forward remodels. Many single-family homes and some condos exceed conforming thresholds, so buyers often use jumbo or high-balance financing.
Premium property types that commonly need jumbo financing include waterfront and view homes, larger-lot estates, and second homes. Unique features such as detached ADUs, steep parcels, or historic elements can affect appraisals and underwriting. Competition from cash buyers is also common, so a strong pre-approval and clear financing strategy matter.
Time-to-close can run longer with jumbos compared to conforming loans because underwriting and appraisals are more detailed. Starting your pre-approval early helps you move quickly when the right home hits the market.
Jumbo vs conforming: how underwriting differs
Jumbo loans don’t follow a single agency rulebook. Each lender sets credit, income, and property standards based on its risk tolerance. That means requirements can vary by institution.
Credit, DTI, reserves, and down payment
- Credit score: Many programs prefer higher scores, often 700 to 740 or above depending on loan size and structure.
- Debt-to-income (DTI): Lenders may cap DTI more conservatively, often in the mid 30s to low 40s.
- Reserves: Expect larger cash reserves, typically 6 to 12 months of PITI; super-jumbo or investment loans can require more.
- Down payment: Many jumbo purchases work with 10 to 20 percent down. Bigger loans, cash-out, or complex files may need 20 to 30 percent or more.
Income documentation
- Salaried/W-2: Recent pay stubs, W-2s, and employer verification are standard.
- Self-employed/1099: Most lenders require two years of personal tax returns, and often business returns, year-to-date profit and loss, and additional documentation. Larger balances can trigger higher reserve requirements.
- Alternative documentation: Some lenders offer bank-statement or asset-based jumbo programs. These typically come with higher rates, larger reserve requirements, and strong proof of asset liquidity.
For general consumer mortgage guidance, the CFPB’s resource on mortgage basics is a helpful reference.
Appraisals and property review
Luxury appraisals can be complex. If comparable sales are scarce or the home is unique, the appraiser may need to apply additional methods and commentary. Some lenders will order a second appraisal on high-value properties. For condos, lenders review HOA financials and project health closely. Some projects may not meet certain jumbo lender standards, so it’s smart to confirm early.
Rates and loan products
Jumbo rates can be slightly higher than conforming, but not always. Pricing depends on market conditions and each lender’s portfolio strategy. Common product types include fixed-rate terms, ARMs like 5/6 or 7/6, and in some cases interest-only options. Many jumbo buyers use ARMs to access lower initial rates.
Your jumbo pre-approval game plan
Strong preparation helps you compete and close on time. Use this checklist to get ahead.
Documents to gather early
- Government ID
- Recent pay stubs (30 days) and W-2s (2 years)
- Federal tax returns (2 years) and business returns if self-employed
- Recent bank statements for all accounts (2 to 3 months)
- Retirement and brokerage statements if funds support down payment or reserves
- Gift letters and source documentation for any gifted funds
- Purchase contract and HOA docs for condos
- Clear explanations for large deposits or transfers
Tips to avoid delays
- Season funds: Keep down payment and reserve assets stable; document any transfers.
- Explain large deposits: Be prepared with paper trails for non-routine activity.
- Separate accounts: Keep business and personal funds cleanly separated.
- Stability matters: Avoid new debt, late payments, or job changes during underwriting.
- Plan access to reserves: If using retirement assets to meet reserve requirements, document terms and access.
Appraisal and inspections in Marin
Provide your lender with recent comparable sales or details on material improvements when available. Unique features like seawalls, steep lots, or historic elements may require special commentary. In coastal Marin, plan for inspections that can affect underwriting or insurance, such as foundation, geological, or seawall evaluations. For property research and local parcel context, the Marin County sites for the Assessor-Recorder and Planning Division are useful reference points.
Choosing a lender in Marin
Selecting the right financing partner is as important as the rate quote. Here’s how lenders typically differ.
Who does what
- Local/regional banks and credit unions: Often provide portfolio jumbo loans with local appraisal and property expertise.
- National lenders: Broad product menus and competitive pricing; guidelines vary.
- Private banks/wealth lenders: Tailored solutions for high-net-worth clients through relationship banking.
- Mortgage brokers: Can shop multiple jumbo programs, including bank-statement or interest-only options.
- Alternative/bridge lenders: Useful for timing gaps or unique scenarios, typically at higher cost.
Local practices to plan for
- Insurance: Lenders require adequate hazard coverage, and flood insurance when applicable. In coastal Marin, confirm availability and cost early. The Planning Division’s pages can help you understand local risk context.
- Timelines: Jumbo files often need longer appraisal and underwriting windows. Ask about lock periods that match your expected timeline.
- Condo projects: Some HOA financials or litigation histories can slow approvals. Verify project health and lender requirements early.
Smart financing strategies
- Bridge loans: Helpful if you’re buying before selling a current property.
- Piggyback structures: Sometimes used to manage down payment levels or avoid mortgage insurance alternatives.
- Portfolio flexibility: A local bank may allow exceptions for unique income or property features.
- Strong file presentation: Pair a verified pre-approval with proof of funds to strengthen your offer.
Next steps for Tiburon buyers
Use this quick plan to move forward with confidence:
- Verify limits: Check the current FHFA conforming loan limits and compare them to your target price range.
- Get pre-approved with two lenders: Consider one local portfolio lender and one national or broker channel to compare terms and timelines.
- Assemble documents: Gather income, asset, and tax files now to speed underwriting.
- Ask targeted questions: Clarify condo/HOA review steps, reserve calculations, rate lock options, and insurance requirements.
- Plan your timeline: Account for appraisal complexity and longer jumbo underwriting.
- If self-employed: Discuss bank-statement or asset-based programs up front.
For market context as you explore timing, the California Association of REALTORS hosts statewide and regional market updates on its Market Data page.
Risks to plan around
- Appraisal gaps: High-end properties can appraise below contract price. Know your appraisal contingency and options if the value comes in short.
- Insurance: In coastal areas, insurance availability and pricing can affect closing. Confirm coverage early.
- Rate movement: Jumbo pricing can shift with markets. A pre-approval letter is not a rate lock. Discuss lock strategy with your lender.
Ready to map out a jumbo strategy that fits your goals and the Tiburon market? For warm introductions to trusted local lenders, help stress-testing your budget, and access to curated listings, reach out to First California Realty, Inc.. Let’s connect and plan your next move with confidence.
FAQs
What is a jumbo loan and how is it defined?
- A jumbo loan exceeds the FHFA’s conforming limit for the year and property unit count; see the FHFA’s conforming loan limits for current figures.
How much do I need for a jumbo down payment in Marin?
- Many purchases qualify with 10 to 20 percent down, while larger balances or complex files often require 20 to 30 percent or more, depending on the lender.
What credit score and reserves do jumbo lenders want?
- Typical programs prefer scores of 700 to 740 or higher and 6 to 12 months of PITI in reserves; super-jumbo or investor loans may require more.
Do jumbo rates run much higher than conforming rates?
- Not always; spreads vary with market conditions and lender pricing, and product choice like ARMs versus fixed can change your rate.
I’m self-employed. Can I qualify for a jumbo?
- Yes, but expect two years of tax returns, business documentation, and possibly higher reserves; some lenders offer bank-statement or asset-based options.
What should Tiburon condo buyers know about jumbos?
- Lenders closely review HOA financials and project health; confirm your lender’s condo approval process early to avoid delays.
