Jumbo Loans in Saratoga: What Buyers Should Know

Shopping for a home in Saratoga and seeing list prices that start with a two or three? If so, you are likely looking at a jumbo mortgage. You want clarity on limits, rates, and what it takes to qualify so your offer lands without surprises. In this guide, you’ll learn the Santa Clara County jumbo threshold, common down payments and reserves, how pricing compares, the documents lenders expect, and a simple preapproval plan. Let’s dive in.

Jumbo basics in Saratoga

A jumbo loan is any mortgage that exceeds your county’s conforming loan limit. In Santa Clara County for 2024, the one‑unit conforming limit is $1,149,825. Any loan amount above that is a jumbo.

What this means on the ground: on a $2,500,000 purchase with 20% down, your loan would be about $2,000,000, which is above the county limit and therefore a jumbo. Because many Saratoga homes trade well above national averages, jumbo financing is common here. Limits are reviewed each year, so confirm the current figure with your lender before you lock plans.

How jumbo pricing compares

Jumbo loans are not purchased by Fannie Mae or Freddie Mac, so pricing follows investor demand. In many mid‑2020s market cycles, jumbo rates run about 0 to 50 basis points higher than comparable conforming loans for well‑qualified buyers. That spread can shrink or widen based on market conditions and loan features.

Expect higher appraisal diligence on luxury properties, which can add cost and time. Mortgage insurance is less common for jumbos above 80% loan‑to‑value. Some lenders offer structured options, but most favor larger down payments instead of traditional PMI.

Down payment, LTV, and reserves

For a primary residence, many jumbo programs price best at or below 80% LTV, which is 20% down. Select lenders will go to 90% LTV for very strong borrowers, but rates, fees, and reserve requirements are usually higher. Second homes and investment properties typically require larger down payments, often 20% to 30% or more.

Reserves matter with jumbos. Plan for 6 to 12 months of PITI in liquid or vested assets for a primary residence, with more required as loan size rises or income gets more complex. Lenders will review where funds are held, that they are seasoned, and that they are accessible.

Credit scores and DTI

Strong credit helps your pricing. Many jumbo programs offer best terms with mid‑700s scores. Some lenders accept lower scores with tighter terms, but pricing often reflects the added risk.

Debt‑to‑income ratios commonly align with conforming standards around 43% to 50%. Lower LTVs, larger reserves, or stronger assets may allow more flexibility depending on the program and lender.

Documentation that speeds approval

Jumbo underwriting rewards complete, clean files. Here is what lenders typically request:

• Identification, signed application, and credit authorization.
• Income: two years of W‑2s and recent pay stubs. If you receive bonuses, expect to provide two years of tax returns and evidence of bonus history.
• Equity compensation: RSU grant and vesting schedules, broker statements, and any tax records for realized stock income. Lenders will verify what is vested and saleable and whether it can count toward income or reserves.
• Self‑employed or 1099: two years of personal and business tax returns, a year‑to‑date profit and loss, and possibly business bank statements. Some lenders have bank‑statement programs at higher rates.
• Assets and reserves: two or more months of bank, brokerage, and retirement statements. Be ready to document the source of down payment funds and any large deposits.
• Gift funds: a gift letter and donor statements showing the transfer.

Large or unexplained deposits will be questioned, so prepare clear documentation upfront. The more complete your packet, the faster an underwriter can issue a strong preapproval.

Appraisals on high‑value Saratoga homes

Expect a full interior and exterior appraisal by a certified appraiser experienced with luxury properties. For unique estates or very high values, the lender may require a second appraisal or a review. Features like acreage, equestrian elements, or extensive custom work require appraisers who understand local comparables.

Condos often involve project review and additional documentation. Properties with ADUs or multi‑unit layouts can have different underwriting rules, so confirm eligibility early. Title and insurance limits will scale with loan size, and specific endorsements may be required.

A clear jumbo preapproval path

Set yourself up to win in a competitive Saratoga market with these steps:

1. Select 2 to 3 lenders with proven jumbo experience in Silicon Valley. Include one portfolio or private bank and one national lender with jumbo programs.
2. Deliver a complete documentation packet from the start, including tax returns, W‑2s, pay stubs, RSU documents, and asset statements.
3. Request a fully documented, underwritten preapproval. This is stronger than a quick prequal letter and can help you compete.
4. Ask about reserve requirements and what assets count toward reserves, including retirement accounts.
5. Confirm property eligibility and the appraisal plan, including whether multiple appraisals or desk reviews are likely.
6. Obtain Loan Estimates from each lender and compare rate, points, fees, and lock policies, including extensions.
7. If you are relocating, confirm remote closing options and coordination with Santa Clara County title and escrow.

Smart questions to ask lenders

• What is the current conforming loan limit for Santa Clara County, and how does it affect my scenario?
• What down payment and maximum LTV do you offer for primary, second home, and investment jumbo loans?
• How many months of reserves do you require, and which accounts count toward reserves?
• What credit score do you need for best pricing, and what is your minimum score?
• What DTI do you allow, and can stronger reserves or lower LTV stretch that limit?
• How do you document RSUs, options, and bonuses? Can vested RSUs count as reserves or income?
• Do you have any bank‑statement or alternative documentation programs for self‑employed borrowers?
• What is the current rate spread between your jumbo and conforming loans, and what points or fees apply?
• What are your appraisal requirements for Saratoga properties, and what are typical fees and timelines?
• Are you a portfolio lender, or will you sell the loan after closing?
• Can you issue a fully underwritten preapproval? What do you need from me to do that?
• What is your lock policy, lock period, and extension fee schedule?
• Do you have any overlays beyond investor guidelines that might affect my approval?

Timing, locks, and closing confidence

Jumbo appraisals and underwriting can take longer than conforming files, especially for custom or high‑value homes. Build in extra time when you write your offer and discuss contingency timelines with your lender and agent. Because jumbo pricing can move independently, talk through lock strategy early and understand extension costs.

The bottom line for Saratoga buyers

Most Saratoga purchases will require jumbo financing unless you are buying well below the area’s typical price range or bringing significant cash. With strong credit, a thoughtful down payment, documented reserves, and a fully underwritten preapproval, you can compete with confidence. If you are a relocating executive or a buyer with RSUs, gather your equity documents now so underwriting is smooth.

Ready to tailor a plan to your goals and timeline? Connect with Janet Souza for local guidance, a vetted lender list, and a calm, concierge process from offer to close.

FAQs

What is considered a jumbo loan in Santa Clara County in 2024?

• Any one‑unit mortgage amount above $1,149,825 is a jumbo, and limits are reviewed annually, so confirm the current figure with your lender.

How much down payment do I need for a jumbo loan on a primary residence in Saratoga?

• Many lenders price best at 20% down, with select programs allowing 10% down for very strong borrowers, often with higher rates and stricter reserve rules.

Do jumbo loans require mortgage insurance in Saratoga?

• Traditional PMI is less common on jumbos above 80% LTV; lenders often require larger down payments or structured solutions that add cost.

What documents do I need if my compensation includes RSUs and bonuses?

• Expect to provide RSU grant and vesting schedules, broker statements, pay stubs, two years of W‑2s and tax returns, and any records showing realized stock income.

How long does a jumbo loan approval usually take in Saratoga?

• It can take longer than conforming due to detailed underwriting and appraisals; start early and budget extra time to avoid closing delays.

Will a higher credit score lower my jumbo rate?

• Yes, best pricing often requires mid‑700s scores, though lenders vary; stronger reserves and lower LTV can also improve terms.