Buying in Burlingame and hearing the term “jumbo loan” at every turn? You’re not alone. With Peninsula prices and low inventory, many buyers here use financing that sits above standard limits. This guide breaks down how jumbo loans work, what it takes to qualify, how rates affect your buying power, and how to present a strong offer in a competitive market. Let’s dive in.
Conforming vs. jumbo loans
A conforming loan is a mortgage that meets Fannie Mae and Freddie Mac size and eligibility rules. A jumbo loan is any mortgage with a principal amount above the conforming loan limit for your county and property type. In San Mateo County, that limit changes annually. You can check the current number using the FHFA’s official tool for the conforming loan limits map.
- The loan amount that matters is your mortgage principal, not the purchase price. It is the price minus your down payment.
- If your loan exceeds the San Mateo County limit for a one‑unit home, it is considered a jumbo.
- FHFA updates limits each year, so always verify the current limit on the FHFA map.
Why the label matters: conforming loans usually benefit from broader investor demand, more standardized underwriting, and often lower rates. Jumbos are not purchased by Fannie Mae or Freddie Mac, so lenders set stricter standards and pricing can be different. For a plain-English overview of mortgage documentation and underwriting, review the CFPB’s guidance on what documents you need to apply for a mortgage.
Why jumbos are common in Burlingame
Burlingame sits in a high-cost Peninsula corridor where many single-family homes and even townhomes can require larger loans. Multiple-offer situations are common, and buyers often structure financing to be as clean and predictable as possible.
When planning your monthly budget, include more than principal and interest:
- Property taxes: In California, the base property tax rate is roughly 1% of assessed value, plus local assessments or parcel taxes. You can learn how assessed value is determined through the San Mateo County Assessor’s assessment division.
- HOA dues: Condo and townhome communities in Burlingame can have meaningful monthly dues that affect loan qualification.
- Insurance: Homeowners and, if required, flood or earthquake policies add to total housing costs.
Local sales data moves quickly. Your agent and lender can help you pair current price trends with the right financing structure before you write an offer.
Typical jumbo requirements
While every lender is different, jumbo loans usually require stronger overall profiles than conforming loans. Expect the following.
- Credit score and history: Many lenders look for mid-700s credit scores for best pricing. Some approve lower scores at higher costs.
- Down payment: A common expectation for primary residences is 20% to 30%. Higher loan-to-value options exist but usually come with tighter documentation, more reserves, or portfolio lending.
- Debt-to-income ratio: Many lenders cap DTI around 43% for jumbos, though limits vary.
- Cash reserves: You may need several months to a year of reserves covering principal, interest, taxes, and insurance. Six to twelve months is common for larger loans.
- Documentation: Prepare two years of tax returns and W‑2s, 30 days of recent pay stubs, two to three months of bank and investment statements, and explanations for large deposits. The CFPB’s mortgage documents checklist is a helpful reference.
- Appraisal: Jumbos require an appraisal. Ordering early and using a lender with a strong local appraiser network helps keep timelines tight.
- Mortgage insurance: Traditional mortgage insurance is generally not available on jumbo loans. High-LTV options may involve lender-paid alternatives, a piggyback second loan, or portfolio/non-QM products.
You can work with large banks, credit unions, mortgage brokers, and portfolio lenders. Pricing and underwriting can vary widely, so it pays to compare.
Rates and buying power
Because jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders and investors take on more risk. That can mean different pricing. Historically, jumbos have often been priced modestly higher than similar conforming loans, though spreads change with market conditions and borrower profiles. For broad context on rate trends, you can follow the Freddie Mac weekly mortgage survey.
Here is an illustrative example to show impact, not a quote:
- Purchase price: $2,000,000
- Down payment: 20% ($400,000)
- Loan amount: $1,600,000
- Compare 30‑year fixed at 6.00% vs. 6.50%
- At 6.00%, principal and interest ≈ $9,594 per month
- At 6.50%, principal and interest ≈ $10,110 per month
- Difference ≈ $516 per month
A quarter to half a percent can change your monthly budget and the price you can comfortably support.
Strategies to manage rate impact:
- Increase down payment to convert a jumbo into a conforming loan if possible.
- Consider a conforming first mortgage with a smaller second loan. This can be complex and has tradeoffs.
- Evaluate adjustable-rate mortgages that may offer lower initial rates, understanding the future rate risk.
- Shop multiple lenders, including portfolio lenders and credit unions, since jumbo pricing can differ. For a plain-language primer, see Bankrate’s overview of jumbo loans.
Pre-approval that wins offers
In Burlingame’s multiple-offer environment, a strong pre-approval can be the difference between getting the house or missing out.
- Pre-qualification vs. pre-approval: Pre-qualification is a quick review. A pre-approval means a lender has reviewed your credit, income, and assets. The strongest option is a fully documented, underwritten pre-approval or a conditional commitment subject only to property-related items.
- Documents to gather: Two years of federal tax returns, W‑2s, 30 days of pay stubs, two to three months of bank and investment statements, identification, and explanations for large deposits. If you are selling another property, be ready with proof of funds for the down payment or bridge financing.
- What sellers want to see: A respected lender letter, clear evidence of reserves, a quick appraisal plan, and clean timelines. Shorter financing contingencies are common locally, often 10 to 17 days rather than 21 to 30 days.
If your price point is near the conforming limit, your ability to increase the down payment and keep the loan conforming can be a meaningful advantage in a competitive situation.
Checklist for Burlingame buyers
- Start early with at least two lenders that actively originate jumbo loans.
- Confirm the current San Mateo County conforming loan limit on the FHFA map so you know whether your loan will be jumbo.
- Decide on a target down payment, often 20% to 30% for competitive jumbo offers.
- Prepare full documentation and be ready to show reserves.
- Work with your agent on offer strategy: appraisal gap language, earnest money, and financing contingency timing.
- Coordinate rate-lock timing, appraisal ordering, and inspection schedules with your lender to align with seller deadlines.
- Review how HOA dues, taxes, and insurance change your qualifying numbers. For assessed value basics, consult the county assessor’s assessment division.
Smart questions for lenders
Use these questions to compare options and set expectations:
- Will my loan be conforming in San Mateo County based on this price and down payment?
- What is the current rate difference between conforming and jumbo for my profile and loan size?
- What minimum credit score, DTI, and reserves do you require for this amount?
- Can you issue a fully underwritten pre-approval or conditional commitment? How fast can you close?
- Do you offer portfolio, asset-based, or bank-statement programs that fit my situation?
- How will you handle the appraisal in this neighborhood, and how quickly can you order it?
The bottom line
Jumbo financing is part of everyday life in Burlingame. When you understand the conforming limit, prepare documentation early, and align with a lender who knows Bay Area jumbos, you can compete with confidence. If you want a plan tailored to your budget and target neighborhoods, let’s connect. Hablamos español.
Ready to move forward? Reach out to Gianna Archini for local guidance and a clear path to your next home.
FAQs
What is a jumbo loan in San Mateo County today?
- A jumbo is any mortgage above the county’s conforming loan limit for your property type. Check the current San Mateo County limit using the FHFA conforming loan limits map.
Are jumbo mortgage rates always higher than conforming?
- Not always. Historically they are often a bit higher, but spreads change with market conditions, loan size, and borrower profile; compare current pricing across lenders.
Can I avoid a jumbo by increasing my down payment?
- Yes. If a larger down payment brings your loan at or under the county limit, you may qualify for conforming pricing and potentially lower costs.
How much in reserves do jumbo lenders require?
- Many lenders want several months to a year of reserves covering principal, interest, taxes, and insurance; exact amounts vary by lender and profile.
Do jumbo loans take longer to close in Burlingame?
- They can due to more documentation and appraisal steps, but a fully underwritten pre-approval and an experienced lender can keep timelines competitive.
