Shopping for a Brentwood home and wondering if your mortgage will be “jumbo”? You are not alone. On LA’s Westside, many prices sit above standard loan limits, which changes how lenders evaluate you and your property. In this guide, you will learn what counts as a jumbo loan, how underwriting works, what to expect with appraisals and timelines, and practical steps to prepare. Let’s dive in.
What is a jumbo loan
A jumbo mortgage is a loan amount that exceeds the conforming limits set by the Federal Housing Finance Agency. Conforming loans can be purchased by Fannie Mae and Freddie Mac, while jumbo loans cannot. That means jumbo underwriting, pricing, and program availability vary by lender and investor.
On the Westside, this matters because many Brentwood homes are priced above conforming thresholds. If your loan amount is higher than the county’s limit for your property type, you will likely use a jumbo program.
2024 conforming limits and Brentwood
For 2024, the FHFA baseline limit for a one-unit home was $766,550. In designated high-cost areas, the cap can rise to 150 percent of the baseline, which is $1,149,825. Los Angeles County uses high-cost limits, but limits change every year. Always verify the current figures using the FHFA conforming loan limits for Los Angeles County.
Quick way to tell if your loan is jumbo
Estimate your loan size by subtracting your down payment from the purchase price. For example, on a $2,000,000 Brentwood home with 20 percent down, the mortgage is $1,600,000, which is above typical conforming limits. That is a jumbo loan. Multi-unit properties have different loan limits, so check the FHFA table for your property type.
What lenders look for
Jumbo underwriting is more detailed than conforming. Lenders rely on their own investor guidelines, so exact requirements vary. You can improve outcomes by organizing your documents early and choosing a lender that is experienced with Westside properties.
Credit scores and documentation
Many jumbo programs prefer credit scores in the 700 to 760 plus range. Some programs accept lower scores with stronger compensating factors. Expect full documentation, including tax returns, W-2s or 1099s, bank and investment statements, letters for large deposits, and verification of assets used for reserves.
Debt-to-income and reserves
Lenders often look for a debt-to-income ratio under about 43 to 45 percent. Strong compensating factors can create flexibility, but conservative lenders will stick to the lower end. Reserve requirements are also more substantial for jumbo financing. Many lenders ask for 6 to 12 months of principal, interest, taxes, and insurance in reserves, and may differentiate between liquid and non-liquid assets.
Down payment, LTV, and PMI
Private mortgage insurance is less common on jumbo loans. Because of that, higher down payments are typical. For a primary residence, many jumbo programs allow 10 to 20 percent down. Some lenders prefer 20 to 30 percent, especially for second homes or investment properties. A few borrowers use piggyback seconds to reduce the first mortgage size, but these structures add complexity and are less common than before 2008.
Interest rates and pricing
The rate spread between conforming and jumbo loans shifts with market conditions. Strong credit, lower loan-to-value, and healthy reserves can improve pricing. Your final rate also depends on property type, occupancy, and documentation program.
Appraisals on Westside properties
Appraisals for high-value Westside homes are often complex. Unique architecture, view premiums, and bespoke improvements can limit comparable sales. Lenders may require a full interior appraisal, a second valuation, or a review by another appraiser. Build time into your escrow for valuation work. If comps are thin, prepare for the possibility of a pricing discussion or a modest adjustment.
A proactive approach helps. Ask your lender about appraisal timelines upfront, and discuss which comparable sales they expect to use. If you are buying a property with distinctive features or recent custom work, plan for extra time to document upgrades.
Popular jumbo products in Brentwood
You will see a mix of fixed-rate and adjustable-rate options on the Westside, plus portfolio loans from banks that keep mortgages on their books.
- Fixed-rate loans: 30-year and 15-year fixed options are common for primary residences. They provide predictable payments and can be a good fit if you plan to hold long term.
- ARMs: 5, 6, or 7-year fixed-period ARMs may offer lower initial rates. They can make sense if you plan to sell, refinance, or pay down principal within that timeline.
- Portfolio options: Local and private banks may offer jumbo programs with flexible underwriting for high-net-worth clients or unique properties.
- Alternative documentation: Bank-statement or asset-based programs exist for non-W-2 income, though pricing and fees vary.
Refinancing: rate-and-term vs cash-out
Rate-and-term refinances usually allow higher loan-to-value ratios than cash-out. Cash-out refinances are more conservative, often with lower LTV caps and higher reserve requirements. If you are considering discount points to lower your rate, calculate your break-even timeline and align it with your expected ownership horizon.
Alternatives to a jumbo first mortgage
There are times when another structure fits your plan.
- Bridge financing: If you need to buy before selling, a short-term bridge loan or HELOC can help. These are temporary solutions and often carry higher rates.
- Second-mortgage piggyback: A second loan can reduce the first mortgage balance to conforming levels. This adds complexity and a second payment, so weigh the pros and cons.
- All-cash purchase: All-cash is common in the luxury segment. Sellers often view cash as lower risk because there is no financing contingency.
Condo vs single-family considerations
Condos and planned communities come with a second layer of underwriting. Lenders review the building’s health, including HOA reserves, litigation, commercial-to-residential ratios, rental caps, insurance coverage, and any special assessments. Some jumbo lenders require prior project approval before issuing a final loan approval.
If you are buying a Brentwood condo, expect to provide HOA documents and allow extra time for review. Be prepared for slightly higher reserve requirements and a close look at the project’s financials.
Property taxes and closing costs in LA County
California’s Proposition 13 limits annual property tax increases, but a change in ownership triggers reassessment at the new purchase price. After you close, you should plan for a supplemental tax bill. Review the Los Angeles County Assessor’s guide to supplemental assessments so you know what to expect. Lenders include estimated taxes and insurance in your PITI when qualifying you.
With higher purchase prices, escrow and title fees, transfer taxes, and title insurance premiums also scale up. Ask your escrow officer for a detailed estimate early in the process.
Timelines and how sellers view jumbo offers
Jumbo loans can require longer underwriting and appraisal timelines. A 45 to 60 day escrow is common for complex files or unique properties. Sellers know this, and many will favor buyers with full preapprovals, strong proof of funds, and lenders that regularly close jumbo loans in the neighborhood.
If you are writing an offer, match your contingency periods to your lender’s timelines. Consider a shorter loan contingency only if your preapproval is deep, your documentation is complete, and the appraisal can be scheduled quickly. In competitive situations, private bank preapprovals and cash reserves can help sellers feel confident in your offer.
Step-by-step: prepare for a jumbo in Brentwood
- Get a true preapproval: Gather two years of tax returns, recent paystubs, W-2s or 1099s, bank and investment statements, and letters for large deposits. If self-employed, include a year-to-date profit and loss statement.
- Confirm loan limits: Verify the current Los Angeles County numbers using the FHFA conforming loan limits to see if your loan will be jumbo.
- Discuss appraisal strategy: Ask about expected comps and whether the lender might require a second opinion or appraisal review.
- Plan reserves and down payment: Many programs expect 10 to 20 percent down for a primary residence and 6 to 12 months of reserves.
- Compare lenders: Evaluate a national jumbo specialist, a local portfolio bank, and a mortgage broker. Compare rates, reserve rules, condo expertise, and appraisal turnaround times.
- Understand rate locks: Ask about rate-lock duration, extension fees, and any float-down policy.
- Learn the basics: Review the CFPB’s mortgage basics to get familiar with key terms and steps.
For sellers: vetting jumbo buyer financing
- Request a full preapproval letter, not a prequalification.
- Ask for recent proof of funds that covers the down payment and reserves.
- Confirm the lender’s experience with jumbo loans in Westside neighborhoods.
- Set a realistic escrow timeline to account for appraisal and underwriting.
- When evaluating multiple offers, weigh financing risk along with price and terms.
Quick checklist
Buyers
- Pull your credit report and address issues before you apply.
- Assemble tax returns, W-2s, 1099s, K-1s, and bank or investment statements.
- Verify reserves and clarify which assets qualify.
- Work with lenders who close jumbo loans on the Westside.
Sellers
- Require a complete preapproval and proof of funds.
- Expect longer appraisal timelines and plan your closing accordingly.
- Keep flexibility for appraisal-related negotiations.
If you want a composed, data-informed path to your next Brentwood move, connect for private guidance. For discreet access, market insight, and off-market opportunities, reach out to Gina Martino. Receive Exclusive Off‑Market Listings and a clear plan for your financing and timeline.
FAQs
What counts as a jumbo loan in Los Angeles County
- A loan amount above the county’s FHFA conforming limit for your property type is considered jumbo, so verify current limits on the FHFA site.
Do jumbo loans require private mortgage insurance
- Traditional PMI is uncommon on jumbo loans, so lenders often require higher down payments or other risk controls instead.
Are jumbo mortgage rates always higher than conforming
- Not always, since spreads change with markets, and strong credit, lower LTV, and ample reserves can produce competitive jumbo pricing.
How long does a jumbo loan close take in Brentwood
- Plan for about 45 to 60 days due to detailed underwriting, condo or HOA reviews if applicable, and complex appraisals.
Can I avoid a jumbo by using two loans
- A piggyback second can reduce the first mortgage to conforming levels, but it adds complexity and a second payment, so weigh benefits against simplicity.
What should I have ready for a true jumbo preapproval
- Two years of tax returns, W-2s or 1099s, paystubs, bank and investment statements, documentation for large deposits, and proof of reserves are typical.
