Wondering if you’ll need a jumbo mortgage to buy in San Mateo County? With Peninsula prices, many buyers do. You want a clear roadmap on limits, what lenders expect, and how to make your offer stand out. In this guide, you’ll learn what counts as a jumbo loan here, the 2024 limits, practical underwriting basics, and a step-by-step pre-approval checklist. Let’s dive in.
Jumbo loans explained
A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). Conforming loans are eligible for purchase by Fannie Mae or Freddie Mac, which helps keep costs lower and guidelines standardized.
San Mateo County is a high-cost county. Many homes here exceed both the FHFA baseline and often the high-cost conforming ceiling, so jumbo financing is common for single-family homes and higher-priced condos.
2024 conforming limits at a glance
For 2024, the FHFA baseline conforming limit for a one-unit property is $766,550. In high-cost counties like San Mateo County, the maximum conforming limit for a one-unit property is $1,149,825. Any loan amount above the county’s conforming limit is considered a jumbo.
Keep in mind, FHFA updates limits every year. Multi-unit properties also have different, higher limits, so confirm your target property’s unit count and the current year’s figures with your lender before you shop.
Underwriting basics for jumbo buyers
Jumbo underwriting is often more detailed than what you see with conforming loans. Lenders look closely at your credit, income stability, cash reserves, and property type. Plan ahead so your file is clean, complete, and easy for underwriters to approve.
Credit and debt ratios
- Credit scores in the 700–740+ range are common for the best pricing. Some programs consider mid-600s, but terms may be less favorable.
- Debt-to-income (DTI) caps typically fall between 43%–50%, depending on your profile and compensating factors like strong reserves or lower LTV.
Down payment and loan-to-value (LTV)
- Expect to bring 10%–25% down for many conventional jumbo programs.
- Putting 20%+ down can open more options or better rates; some lenders want 25% down for price tier or property-type risk.
- Specialized programs, such as physician or executive loans, may offer lower down payments but come with stricter documentation.
Cash reserves and assets
- Jumbo loans often require 6–12 months of PITI in liquid reserves, and more for larger loan balances or riskier profiles.
- Be ready to provide full asset documentation, including recent statements, explanation of large deposits, and proof of funds after closing.
Income and employment verification
- Full documentation is standard: recent pay stubs, 2 years of W-2s, and tax returns when needed.
- Self-employed borrowers should expect 2 years of tax returns and may be asked for year-to-date profit and loss statements and a balance sheet.
Property type and appraisal
- A full appraisal is required. Unique or high-end properties might need a second valuation.
- Non-warrantable condos, certain co-ops, and some planned developments can be tougher to finance. Lenders may ask for higher down payments or decline these property types.
Rates and fees
- Jumbo rates can be slightly higher than or similar to conforming rates depending on market conditions.
- Pricing varies with your credit profile, down payment, and lender appetite for larger balances. Fees may be higher due to risk and investor requirements.
Why pre-approval matters in San Mateo County
A pre-qualification is a quick estimate. A true pre-approval includes a credit pull, initial document review, and a conditional approval from a lender. In a high-price, competitive market, a strong, underwritten pre-approval helps your offer stand out.
Here’s what a robust pre-approval can do for you:
- Build seller confidence with verified income, assets, and credit.
- Reduce the risk of delays that can jeopardize a deal.
- Support a faster closing because underwriting is already underway.
- Show key details up front: loan type (jumbo), down payment, approved loan amount, confirmed reserves, property type eligibility, and any known conditions.
Local market factors to know
Buying in San Mateo County often means planning for jumbo financing. These local dynamics can affect your financing and offer strategy.
- Price levels: Homes here frequently exceed the baseline and often the high-cost limit, which makes jumbo loans routine for many buyers.
- Condos and HOAs: Some condos may be non-warrantable or have project-specific issues. Expect extra scrutiny and possibly higher down payments or a smaller lender pool.
- Multi-unit and ADUs: Income from units may be considered if documented, but underwriting varies and reserve requirements can be higher.
- Cash competition: Cash offers are common in certain price bands. A fully underwritten jumbo pre-approval is the next best signal to sellers.
- Closing timelines: Fast closings are valued. Work with a lender that can order appraisals quickly and navigate jumbo conditions without surprises.
Your jumbo pre-approval checklist
Getting organized early makes everything simpler and faster. Use this checklist to prepare your file and tighten your timelines.
Documents to gather
- Government ID and Social Security number.
- Last 2 pay stubs covering a full pay period.
- W-2s for the past 2 years.
- Federal tax returns for the past 2 years, including all schedules. Self-employed borrowers should add 1099s, year-to-date P&L, and a balance sheet if available.
- 2–3 months of statements for all liquid accounts.
- 2–3 months of brokerage and retirement statements to evidence reserves.
- Documentation for large deposits or transfers.
- Lease agreements and proof of receipt if using rental income to qualify.
- Explanations for any credit events, such as late payments or past bankruptcies.
- Gift letters and donor documentation if a portion of funds is a gift.
What to ask your lender to include
- Exact loan program type: conventional jumbo, portfolio, or other.
- Approved loan amount and LTV, including your required down payment.
- Minimum reserves required and whether retirement funds count toward reserves.
- Credit score used for approval and any lender overlays that apply.
- DTI cap used and whether rental income was included in calculations.
- Approved property types and any restrictions.
- Outstanding conditions that must be cleared before final commitment.
- Pre-approval expiration date and refresh process.
Tips to strengthen your offer
- Request a fully underwritten pre-approval rather than a basic pre-qualification.
- Include verified proof of funds for down payment and reserves with your offer package.
- Work with a lender experienced in Peninsula jumbos and condo project reviews.
- Ask your lender to pre-check property type acceptability before you write an offer.
Next steps for San Mateo County buyers
Start with clarity on budget, cash to close, and reserves. Align with a jumbo-savvy lender who can move quickly and communicate clearly with your agent and the listing side. Organize your documents, request a full underwrite, and confirm your property type is financeable.
If you want a calm, data-informed plan for buying in San Mateo County, connect with Apsara Oswal. You’ll get clear guidance, local market context, and a step-by-step approach that helps you compete with confidence.
FAQs
What counts as a jumbo loan in San Mateo County in 2024?
- Any one-unit loan amount above the high-cost conforming limit of $1,149,825 is considered a jumbo for 2024; FHFA updates limits annually.
How much down payment do I need for a jumbo loan locally?
- Many jumbo programs expect 10%–25% down, with 20%+ common for better rates; some lenders may require 25% depending on risk.
What credit score do I need for a jumbo mortgage?
- Scores in the 700–740+ range are typical for the best pricing; some programs may consider mid-600s with trade-offs.
How many months of reserves are required for jumbos?
- Plan for 6–12 months of PITI in liquid reserves, with higher balances or complex profiles sometimes requiring more.
How does a jumbo pre-approval help my offer in San Mateo County?
- An underwritten pre-approval signals verified credit, income, and assets, speeds timelines, and reduces seller risk, which strengthens negotiations.
Are condos harder to finance with a jumbo loan?
- Non-warrantable condos or projects with specific issues can be tougher; expect more scrutiny, possible higher down payments, or limited lender options.
Can rental income from an ADU help me qualify for a jumbo?
- It may help if documented and accepted by the lender, but underwriting standards vary and reserves may be higher for multi-unit income scenarios.
How fast can I close on a jumbo loan in San Mateo County?
- With a fully underwritten pre-approval, responsive documentation, and early appraisal ordering, many buyers achieve faster local closings.
