Home › Loan options › Jumbo Loans
Financing for Homes Above the Conforming Loan Limit
When a home's price runs past what Fannie Mae and Freddie Mac will buy, you need a jumbo loan. As a brokerage, North Bay Capital shops many jumbo lenders to find the structure and rate that fits your scenario, whether you're a salaried buyer, a self-employed earner, or purchasing a second home in the North Bay.
A jumbo loan finances an amount above the FHFA conforming limit, which matters often in higher-cost California markets. Expect stronger credit, a larger down payment, and cash reserves, with fixed, ARM, and bank-statement options available through a broker who compares lenders for you.
Programs we broker
The options under jumbo loans — and the right fit for each.
Standard Jumbo Loan (Full-Doc)
The W-2 jumbo for buyers who document income the traditional way.
A standard jumbo is any loan amount above the conforming limit set by the FHFA. In most of the Bay Area that ceiling is higher than the rest of the country, but once you cross it you're in jumbo territory and the underwriting shifts. Full-doc means we're using W-2s, pay stubs, tax returns, and bank statements the way Fannie and Freddie would, just with tighter credit, reserve, and DTI standards.
I shop a stable of jumbo investors who each like a slightly different borrower. That matters because a 740-score doctor with student loans gets priced very differently than a 780-score tech employee with RSUs. The right lender match can move your rate a quarter to a half point on the same file.
- Bay Area W-2 buyers crossing the conforming ceiling
- Move-up purchases in Sonoma, Marin, and SF
- Refinance to drop a higher-rate jumbo
- Second-home purchases in wine country
Bank Statement Jumbo Loan
A self-employed jumbo that qualifies on deposits, not tax returns.
If you're self-employed and your CPA has done a great job keeping taxable income low, a full-doc jumbo can punish you for it. A bank statement jumbo solves that by qualifying you on 12 or 24 months of business or personal bank deposits. We calculate an expense ratio, average the qualifying deposits, and use that as your income, no tax returns, no P&L gymnastics.
These are non-QM loans, so pricing runs a bit higher than a Fannie-style jumbo and reserves matter. But for a successful business owner who'd otherwise look broke on paper, this is often the cleanest path into a larger home.
- 1099 contractors and consultants
- Business owners with strong deposits but lots of write-offs
- Real estate investors with complex returns
- Restaurant, salon, and trades owners
Asset Depletion Jumbo Loan
Turn liquid assets into qualifying income without selling them.
Some borrowers have the wealth but not the W-2. Asset depletion lets us convert eligible liquid assets, checking, savings, brokerage, and a portion of retirement accounts, into an imputed monthly income stream for qualifying. The lender divides your usable assets by a set number of months (often 60-120 depending on program) and treats that figure as income.
It's the go-to for retirees, sold-business owners, and anyone living on portfolio returns. You don't actually have to spend the money, we're just using it to satisfy the income test. Pair it with a strong credit profile and the file moves quickly.
- Retirees buying a Sonoma County home
- Recent business-sale liquidity events
- High-net-worth borrowers between jobs
- Trust-fund and inheritance-based qualifying
Jumbo ARM (5/6, 7/6, 10/6)
Lower initial rate for buyers who won't keep the loan forever.
A jumbo adjustable-rate mortgage gives you a fixed rate for the first 5, 7, or 10 years and then adjusts every 6 months against an index (these days that's usually SOFR). The longer the fixed period, the higher the start rate, but all three typically price below a 30-year fixed jumbo, sometimes by a meaningful margin.
If you know you'll sell, refinance, or pay the loan off before the fixed period ends, an ARM can save real money. I walk every ARM borrower through the worst-case adjustment math before we lock so there are no surprises at year six or eleven.
- Buyers planning a 5-10 year hold
- Tech employees expecting an equity event
- Bridge to a future refinance
- Lowering payment on a large balance
Jumbo Cash-Out Refinance
Tap California equity for renovations, investment, or debt consolidation.
If your home has appreciated past your current loan balance, a jumbo cash-out refinance lets you replace the existing mortgage with a larger one and take the difference as cash at closing. Bay Area appreciation has put a lot of homeowners in a position where six-figure cash-outs are realistic without touching the prime rate, second-mortgage market.
Lenders are more conservative on cash-out jumbos than on purchases, expect tighter LTV caps, stronger reserve requirements, and slightly higher pricing than a rate-and-term refi. Common uses are funding an ADU build, paying off high-rate credit cards, buying an investment property, or freeing up working capital for a business.
- ADU and major remodel funding
- Paying off high-interest debt
- Buying a rental or second home in cash
- Business capital from home equity
Interest-Only Jumbo Loan
Pay only interest for the first decade, then amortize.
An interest-only jumbo lets you pay only the interest portion of the loan for an initial period, typically 10 years, before the loan recasts and you begin paying principal and interest on the remaining 20-year term. The early-year payment is meaningfully lower than a fully-amortizing loan, which frees up cash flow.
I tell clients this is a cash-flow tool, not a wealth-building one. It makes sense when income is variable and lumpy (think commission, bonus, or equity-heavy comp), when you're planning to sell before the recast, or when you're confident you'll prepay principal selectively. Plan for the higher payment when the IO window closes.
- Variable income with large year-end bonuses
- Buyers planning to sell before recast
- Tech and finance professionals managing equity vesting
- Investors prioritizing cash flow over amortization
Calculators for this loan
Mortgage Payment & Amortization
Monthly payment, full amortization schedule, and interest totals.
Mortgage Affordability
How much home you can comfortably afford based on income and debts.
Debt-to-Income
Front-end and back-end DTI versus lender thresholds.
ARM vs Fixed Rate
Side-by-side ARM versus fixed rate under rate-change scenarios.
What people ask before they apply
What exactly makes a loan a jumbo loan?
A jumbo loan is any mortgage that exceeds the FHFA conforming loan limit for your county. For 2026 the baseline one-unit limit is approximately $832,750, and higher-cost counties go up to a ceiling near $1,249,125 (current figures, verify for your area). Above your county's limit, the loan cannot be sold to Fannie Mae or Freddie Mac, so it is underwritten as a jumbo.
What is the conforming limit in Sonoma County and the North Bay?
Sonoma County is treated as a higher-cost area, so its 2026 one-unit limit is about $897,000, above the $832,750 national baseline (current, verify for your scenario). Loans between the baseline and that county figure are often called high-balance conforming. Only amounts above the county limit are true jumbo. We will confirm the exact line for your specific property.
How much do I need to put down on a jumbo loan?
Most jumbo programs look for 10% to 20% down, and some lenders ask for more on very large loan amounts. A larger down payment can improve your rate and broaden your lender options. Because we shop multiple lenders, we can match your down payment and overall profile to the program that fits best.
What credit score do jumbo lenders want?
Jumbo underwriting is stricter than conforming. Many lenders look for a score around 700 or higher, and the bar often rises with the loan amount, with some wanting 720 to 740 plus on loans well into the millions. Reserves, down payment, and debt-to-income all factor in alongside the score.
Are jumbo rates higher than conforming rates?
Not always. Jumbo rates can be slightly higher or, at times, comparable to conforming rates, depending on the lender, your profile, and market conditions. Because a broker compares many lenders, we can surface where jumbo pricing is competitive for a file like yours rather than relying on a single rate sheet.
Can I get a jumbo loan if I am self-employed?
Yes. Beyond full-documentation jumbo, there are bank-statement (alt-doc) jumbo programs that qualify income from 12 or 24 months of deposits instead of tax returns. These suit business owners and 1099 earners whose returns understate their real cash flow. Expect strong credit, solid reserves, and typically a larger down payment.
Can I use a jumbo loan for a second home?
Yes. Jumbo financing is commonly used for second homes and vacation properties in desirable areas, including the North Bay. Terms for a second home are usually a bit more conservative than for a primary residence, often meaning a larger down payment and reserves. We will lay out exactly how a second-home jumbo would look for you.
Why use a broker instead of going straight to a bank for a jumbo?
Jumbo guidelines vary widely from lender to lender, more so than conforming loans. As a brokerage, North Bay Capital shops many jumbo lenders, so instead of being limited to one bank's box, you get matched to the lender whose guidelines and pricing fit your scenario. You also get a real person, Jesse, who picks up the phone at 707-595-5393.
Jesse Gonzalez, President & Founder
NMLS #278103 · CA DRE #01855372 · Last reviewed June 24, 2026
Buying or refinancing above the conforming limit?
Tell us about the property and your income, and we'll lay out your jumbo options in plain English, comparing fixed, ARM, and bank-statement programs across multiple lenders. Call Jesse Gonzalez at North Bay Capital at 707-595-5393 or email jesse@northbaycap.com for a straight answer on what you qualify for.