3 Smart Ways To Score Your Ideal Jumbo Mortgage In LA County

Jumbo loan mortgage

According to Wall Street Journal’s BuySide, “to buy a pricey house or live in an expensive location, many home buyers must go big to go home.” That means they need jumbo mortgages.

A jumbo mortgage comes with a different set of requirements than government-backed loans. If you need a jumbo mortgage, in amounts from $1.1 million up to $10 million, be aware that these loans represent more risk to lenders than government backed loans. 

A personal finance professional with Bankrate said, “When a chef has to eat his own cooking, he’s going to be more picky.” Picky, but not impossible. Here are three ways you can score your ideal jumbo mortgage in LA County:

Watch your Debt-to-Income Ratio (DTI)

Jumbo mortgage lenders, whether they’re a private investment consortium or a bank, want to see that you don’t have too much debt when making a jumbo mortgage offer. They determine whether you have too much debt using a ratio that compares your monthly or annual debt payments to your monthly or annual income. This is called the “Debt-to-Income Ratio” or DTI.

Most jumbo mortgages require a DTI that’s under 43%. For example, if you have income of $15,000 a month, you can’t have combined debt payments exceeding $6,450 a month, which will include the jumbo mortgage payment.

Have good cash reserves

Most jumbo mortgage lenders will want to see that you have enough cash in the bank to cover at least six months of mortgage payments, including property tax, insurance, and any community or HOA dues. Many lenders will want to see at least a year’s worth of reserve funds when considering a jumbo loan.

Work with an experienced mortgage broker

How many times have you looked at an online mortgage interest calculator? It’s interesting to see how just a small change in interest rate can change payment amounts and total amount that you will owe.

An experienced mortgage broker can show you the financial impact of your jumbo mortgage over time. They can become a trusted partner in structuring your financial present as well as your financial future. Probably the single most effective thing you can do to get the optimal jumbo mortgage in Los Angeles is to work directly with an experienced loan professional through California Platinum Loans


DeCarbo, Beth. “What Is a Jumbo Mortgage, and How Do You Get the Best Rates?” BuySide WSJ, 21 June 2023, url: https://www.wsj.com/buyside/personal-finance/what-is-jumbo-loan-mortgages-ca4ae765

Jumbo Loans: Your Key to Upscale California Living

Are you dreaming of residing in a luxurious Californian neighborhood? Surprisingly, the ticket price might begin at a cool $1 million. Jumbo home mortgages and ARMs (Adjustable Rate Mortgages) are becoming popular for many aspiring to the Californian high life. But what exactly are these mortgage options, and are they your golden ticket?

Jumbo vs. Conforming: Decoding The Terms

A “conforming” loan dances within the lines set by Fannie Mae and Freddie Mac, the dual giants are overseeing home loan purchases. Here’s the crux: if your desired loan exceeds $726,525 in some counties or over $484,350 in others, it steps outside these lines. Such loans are branded as “jumbo” or “non-conforming.” The major draw for conforming loans? They are backed by the big two (Fannie and Freddie), making them a safer bet for lenders.

How Big Can You Go with Jumbo Loans?

Well, the sky’s the limit! There’s no cap to the jumbo home mortgage amount you can seek. It’s feasible whether it’s $1 million or $10 million. And the cherry on top? You get to choose the repayment term that suits your financial plan, from a 15-year period to a conventional 30-year plan.

Setting Sail: Navigating the Jumbo Loan Waters

Securing a jumbo loan might require a tad more paperwork and might even venture into alternative documentation terrain. Here’s the silver lining, though: you can flexibly use bank statements, showcase assets in reserve, or even present other income documents. Fancy a combination of loan products? That’s on the table, too. The goal is clear: securing that dream house in that dream neighborhood.

Making the Right Jumbo Choice

An adjustable-rate mortgage, or ARM, tantalizes with lower initial interest rates. Consider the popular 5/1 Jumbo ARM. The choice depends on your financial strategy and long-term plans. Partnering with a seasoned mortgage broker can illuminate the path, presenting all the jumbo mortgage options at your disposal.

Are you aspiring to upscale living in California? A jumbo mortgage or a jumbo ARM might be your key. Understanding your options and aligning them with your financial trajectory ensures your Californian dream doesn’t remain just a dream.

Are you looking to upscale your California living? Dive into jumbo loan options with California Platinum Loans and turn that dream home into reality!

Interested in jumbo mortgages in Los Angeles? Check out our latest article answering six common questions about these big-ticket loans!

With median home prices at over $900,000 in Los Angeles County, jumbo mortgages can be required for many buyers to finance a home purchase.

What are jumbo mortgages?

A jumbo mortgage is any mortgage which is greater than the annual loan limits published by the Federal Housing Finance Agency (FHFA) each year. Jumbo mortgages are not underwritten by Fannie Mae or Freddie Mac, the two federally-chartered home loan organizations that insure or back “conforming” or conventional mortgages that are less than the FHFA’s annual loan limits.

How much can you borrow on a jumbo mortgage?

Jumbo mortgages start at $1,089,300 in Los Angeles County for a single family home. You can borrow $2 million, $3 million, or more for a jumbo mortgage, depending upon your qualifications and income.

What are jumbo loan requirements?

You may find some online resources which say you need a minimum credit score of 700 for a jumbo mortgage. Jumbo loan requirements can be different from conventional mortgages, usually because the loans aren’t government-backed, which increases lender risk.

Jumbo loans also require favorable debt-to-income ratios, usually no higher than 43%.

Do you need perfect credit for a jumbo mortgage?

You do not need “perfect” credit to qualify for a jumbo mortgage, but the better credit you have, the greater your choices of mortgage term and lender will be. Some lenders do require a minimum credit score of 700, but others are more flexible.

What are down payment requirements for Los Angeles jumbo loans?

You will need to have sufficient equity to qualify for a jumbo mortgage. In the past, many jumbo mortgages required a 30% down payment. This is no longer the case and you may find lenders with more flexible down payment terms ranging from 15% to 30%.

How do you qualify for a jumbo mortgage in Los Angeles?

The optimal way to qualify for a jumbo mortgage in Los Angeles County is to work with a qualified and experienced mortgage broker. They can guide you through the process of obtaining a jumbo mortgage to buy the property that you want and need. Work with California Platinum Loans to discover the many financing options that are available to you.


St. Louis Federal Reserve [FRED], “Housing Inventory: Median Listing Price in Los Angeles County, CA”

Fannie Mae. “Originating & Underwriting: Loan Limits”