The Best Areas in California for Jumbo Mortgages

Robert Cohan
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Thinking about getting a jumbo loan in California? Knowing the jumbo loan limits for each county can make all the difference. Understanding these limits can help guide your decisions and better prepare you for the mortgage application process. Let's explore how understanding these details can assist you in preparing for the jumbo loan application process.

Understanding Jumbo Loans

Jumbo loans in California are high-value home loans that exceed the conforming loan limits set by the FHFA, tailored for high-cost areas. People opt for jumbo loans to purchase luxury homes or properties in expensive markets where standard loan limits fall short.

These large mortgages offer the flexibility to finance higher-priced properties but come with stricter requirements, such as higher credit scores and larger down payments. Understanding these aspects helps buyers confidently navigate the process and secure their dream homes.

Infographic outlining jumbo loan requirements, including credit score, down payment, debt-to-income ratio, and income documentation.

Meeting these requirements does not guarantee loan approval, as all applications are subject to comprehensive lender review and market conditions

Why Location Matters for Jumbo Mortgages

Choosing the right location is important for a jumbo mortgage. The area you pick affects how much your property is worth and what mortgage interest rates you get. Popular areas usually have higher property values, which can be a good real estate investment. Mortgage rates can also change depending on where you buy, affecting your loan costs.

Think about how much homes in the area go up in value over time (property appreciation). A strong local economy means more job opportunities, making the area more attractive. Good schools, parks, and shopping centers also make a location better to live in and can increase your property's value.

By knowing these factors, you can make smart choices for your jumbo mortgage.

Top Areas in California for Jumbo Mortgages

San Francisco Bay Area 

Panoramic view of a densely built-up urban area with numerous buildings of varying heights spread across rolling hills, interspersed with trees.
Row of multi-story buildings with bay windows and palm trees in the foreground under a clear blue sky.
Street sign reading “Washington St” against a clear blue sky with a palm tree in the background.
Panoramic view of a cityscape with residential buildings in the foreground, a dense collection of various other buildings .

The Bay Area's real estate market is both dynamic and competitive, featuring iconic landmarks such as the Golden Gate Bridge and Alcatraz, alongside stunning cityscapes and natural landscapes. 

Key neighborhoods include the prestigious Palo Alto neighborhood and the charming Berkeley cityscape. The San Francisco Bay Area skyline, enriched with cultural scenes, adds to the region's appeal. 

Property prices in this area frequently exceed $1 million. While there has been appreciation in the past, like all real estate investments, future changes in market conditions can affect property values. High-value loans for luxury condos, single-family homes, and townhouses are readily available through jumbo loans, facilitating the opportunity to own property in this highly sought-after region.

  • Pros: Strong job market and cultural attractions.
  • Cons: High cost of living and competitive market.

Los Angeles County 

Street lined with palm trees and flowering plants in the center divider, flanked by buildings with storefronts under a clear blue sky.
Crowded beach with many people in the water and on the sand, set against a backdrop of a city skyline and hills.
Iconic Hollywood sign on a hillside with tall palm trees in the foreground against a clear blue sky.
Iconic view of Rodeo Drive in Beverly Hills, lined with luxury shops and palm trees, highlighting a prime area for jumbo mortgages

LA County offers a vibrant market filled with iconic landmarks like the Los Angeles skyline, Hollywood sign, Santa Monica beach, and Beverly Hills luxury homes. Neighborhoods such as Beverly Hills, Santa Monica, and Pasadena feature properties averaging $800,000 to over $1 million. 

With jumbo loans, you can own luxury homes, beachfront properties, and upscale condos in these sought-after areas.

  • Pros: Vibrant lifestyle and entertainment.
  • Cons: Traffic congestion and high prices.

Orange County

Newport Beach pier at sunset with vibrant purple and pink skies reflecting on the water, showcasing a coastal area for jumbo mortgages in California.
People enjoying a sunny day on the beach in Laguna Beach, California, with luxury homes along the shore, a prime area for jumbo mortgages.
Silhouetted view of Huntington Beach pier at sunset, with a glowing sky and calm ocean, highlighting a popular area for jumbo mortgages in California.
Scenic view of Malibu coastline with beachfront homes, palm trees, and cliffs, showcasing a desirable area for jumbo mortgages in California

Scenic view of Malibu coastline with beachfront homes, palm trees, and cliffs, showcasing a desirable area for jumbo mortgages in California

Orange County offers a dynamic market with sought-after neighborhoods like the Irvine neighborhood, Newport Beach, and the stunning Laguna Beach cliffs. Imagine living near Orange County beaches, surrounded by upscale communities and family-friendly attractions. 

With average property prices around $900,000, a jumbo loan can open the door to high-end homes, coastal properties, and modern condos. Discover your dream home in the vibrant and picturesque landscape of Orange County.

  • Pros: Great schools and beautiful beaches.
  • Cons: High living costs and competition.

San Diego County

San Diego County boasts a stable market with key neighborhoods like La Jolla beach, the Del Mar coast, and Carlsbad beach. Imagine waking up to the stunning San Diego skyline, enjoying the beaches, and immersing yourself in rich cultural attractions. 

Panoramic view of a city skyline with high-rise buildings and a body of water reflecting the buildings, set against a clear blue sky.
Panoramic view of a coastal area with buildings, green spaces, rocky outcrops, and an overcast sky.
Panoramic view of a hillside with multiple houses nestled among greenery under a clear blue sky.
Golden sunset over the cliffs and luxury homes of Sunset Cliffs in San Diego, a picturesque location for jumbo mortgages in California.

With average property prices around $800,000, a jumbo loan can help you achieve the coastal lifestyle you desire, whether it's a beachfront property, a luxury home, or a spacious condo. Discover the charm and beauty of San Diego County and make it your home.

  • Pros: Excellent climate and coastal lifestyle.
  • Cons: Less job diversity and rising prices.

Silicon Valley

Modern building with a curved glass entrance, reflective windows, and an American flag in front.
Close-up view of a colorful object with repeating stripes in red, orange, yellow, green, blue, and purple against a clear blue sky.
Panoramic view of a campus with a prominent bell tower, classical buildings, green lawns, trees, and ornate lamp posts.
Aerial view of a large, circular building with glass walls and a central courtyard featuring greenery and a rainbow-colored structure.

Silicon Valley is renowned for its tech-driven market and iconic landmarks. Key neighborhoods like the Cupertino cityscape, Mountain View office buildings, and the Sunnyvale neighborhood are at the heart of this vibrant area. Imagine living amidst Silicon Valley tech companies, surrounded by tech company campuses, modern architecture, and suburban neighborhoods. 

With average property prices often exceeding $1.5 million, jumbo loans can help finance tech hub properties, upscale homes, and premium condos. Embrace the innovation and luxury that define Silicon Valley.

  • Pros: Booming job market and innovation hub.
  • Cons: Extremely high costs and competitive market.

Tips for First-Time Jumbo Loan Applicants

Navigating the world of jumbo mortgages in California can be exciting! Here are some tips to help you get started:

  1. Research the Best Areas: California has fantastic spots for jumbo mortgages. The San Francisco Bay Area offers great job opportunities and cultural attractions, Los Angeles County has a vibrant lifestyle, Orange County boasts excellent schools and stunning beaches, San Diego County provides a lovely climate and coastal living, and Silicon Valley is perfect for tech enthusiasts.
  2. Consider Your Needs and Finances: Think about what you need and what you can afford. Each area has its own perks, so take your time to explore and see what fits you best.
  3. Consult with a Mortgage Expert: Ready to take the next step? Reach out to Carlyle Financial, your friendly mortgage broker. We make the process simple and stress-free. Your dream property is closer than you think—let us help you get the deal done!
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Disclaimer: This article is for informational purposes only and is not intended as financial advice. Jumbo mortgages often involve more rigorous scrutiny and higher requirements than standard mortgages, which may impact approval times and terms. Interest rates on jumbo loans are typically higher, which could significantly increase the cost of borrowing. Each individual’s financial situation is unique, and you should consult with a Carlyle Financial advisor to understand how our products might fit your specific needs. Outcomes can vary significantly depending on personal and market conditions. Carlyle Financial is committed to fair lending practices and equal housing opportunities. All applications are subject to assessment under fair and equal criteria.

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Robert Cohan

Robert Cohan is driven by a belief that solutions aren’t just found – they are carefully crafted. As…
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About Robert Cohan

Robert Cohan is driven by a belief that solutions aren’t just found – they are carefully crafted. As President of Carlyle Financial, he ensures that the firm’s mortgage solutions are elegantly simple, yet flexible enough to provide custom options for our clients.

Robert is an experienced mortgage professional and industry innovator. He developed his passion for providing extraordinary service for extraordinary clients as a top mortgage professional for several national banks, including Bank of America, Washington Mutual (now J.P. Morgan Chase) and Wells Fargo Home Mortgage, where he became the first loan officer to open a mortgage-only storefront on Canon Drive in the heart of the Beverly Hills triangle.

After working with hundreds of clients at multiple national and regional banks, Robert saw the limitations of the big bank mono-channel model and developed his own lending and service philosophy. His trailblazing approach led to the founding of Carlyle Financial, where he could continue his commitment to customized home loans while changing the way his clients experienced the mortgage process. He is based in the San Francisco headquarters at One Market Plaza.

Robert has been recognized as a leading jumbo mortgage expert in The Wall Street Journal, Business Insider, Investor’s Business Daily, and many other publications. He is also active in his community, committing time and resources to causes that align with his philanthropic values. When he isn’t helping clients structure their next home, you can find Robert on the basketball court coaching youth league kids on their jump shot.