Contrary to popular belief, super jumbo loans are available in California. I want to let you know what I have found to be the maximum loan amounts from the lenders that my company is approved with. As you may have guessed, the requirements for super jumbo loans have gotten stricter.
In San Mateo County, where I live, the "agency (Freddie, Fannie)" jumbo limit is $729,750. The term "super jumbo loan" is relative - for the purpose of this article I will consider it to be any loan amount more than $1 million. The following guidelines are for the purchase of primary residences.
On super jumbo loan amounts up to $2,000,000, the maximum loan-to-value (LTV) percentage is 80%. With loan amounts up to $1,100,000, secondary financing up to 90% of the purchase price is allowed (you're probably going to have to ask the seller to carry a second mortgage to get this outcome - I don't know of any banks lending to 90% in this price range).
A loan amount between $2,000,000 and $3,000,000 has a maximum LTV of 75%. If you or your client wants to put 20% down to obtain a super jumbo loan in this range, secondary financing is allowed up to 80% of the purchase price.
Super jumbo loans are available between $3,000,000 and $5,000,000 up to 70% of the property value. Secondary financing from the seller is OK up to 80% of the property value.
If you need more than $5,000,000, you may need to consult with a private banker, or consider a private money loan. I have found that the highest LTV a private money lender will consider is 75% in California for a very strong borrower.
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Phil Caulfield NMLS #386911 has been helping people obtain mortgages since 1985. The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Cardinal Financial LLC.