What is a Jumbo Loan?

A jumbo loan is frequently needed when purchasing a home particularly in Ventura County. A jumbo loan is a home loan used when the loan needed exceeds conforming loan limits. The conforming loan limits in Ventura County are $739,450, which is significantly higher than the national average. However, many loans needed are well outside of these limitations due to the higher purchase prices in Ventura County. Luckily Jumbo loans have returned since the onset of COVID but are much harder to qualify for than a conforming loan. As a premiere Ventura County Realtor our team is skilled in dealing with jumbo loans and what is required.
In order to qualify for a jumbo loan you will need to have a decently high credit score. The higher the better as loan officers have really cracked down on who they will lend to over the conforming limits. You should also be prepared to have a significant amount of reserves in the bank. Reserves are monies that should be sitting in your savings or retirement account that will not be used for the down payment. Be prepared for your loan officer to request 6-12 months reserves. They will also review your debt-to-income ratio and the lower the debt the better.
Paperwork you should be prepared to show includes: W-2’s, bank statements, any additional income you may have, and if you are self-employed have your profit and loss statements prepared. As a Ventura County Realtor and real estate team we regularly deal with jumbo loans and are happy to walk you through the process. We understand how confusing and overwhelming it can feel and want to make sure we get you into a loan that you feel comfortable with. It is also important that you go through the pre-qualification process prior to shopping for homes so that you know exactly what your budget is.