Thinking about buying in Alamo and wondering how to finance at today’s price points? You are not alone. With many homes trading well above two million dollars, jumbo financing is common here. In this guide, you’ll learn exactly what counts as a jumbo loan in Contra Costa County, what lenders expect, how to prepare, and how to keep your offer strong from preapproval to closing. Let’s dive in.
What is a jumbo loan in Alamo?
A jumbo loan is any mortgage that exceeds your county’s conforming loan limit. For 2025, Contra Costa County’s 1‑unit limit is $1,209,750, so loan amounts above that are jumbo. This is higher than the national baseline limit but still below many Alamo purchase prices. Most buyers at Alamo’s typical price points will either use a jumbo loan or bring a larger down payment to reduce the loan below the cap.
- Learn more about 2025 limits in the FHFA’s announcement of conforming loan limit values. See the FHFA update.
- The CFPB explains why jumbo loans are considered non‑conforming and how they differ from standard mortgages. Read the CFPB overview.
Why jumbo underwriting feels different
Because jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders keep more risk. Expect tighter credit standards, more documentation, possible extra appraisals, and sometimes longer timelines. Pricing can be competitive, but requirements vary widely by lender.
What lenders expect on jumbo loans
Credit score
Many lenders look for 700–720 FICO scores for smaller jumbos and 720–760+ for larger loans. Higher scores usually unlock better pricing and smoother approvals. See typical thresholds.
Down payment and LTV
You will often see 10–20% down payment options, with some programs requiring 20%+ for larger loans or complex scenarios. There is usually no standard PMI on jumbos, so down payment and pricing take its place. Learn how jumbos handle LTV and risk.
Debt‑to‑income ratio (DTI)
Many lenders target DTI at or below 43%, and some prefer lower for the best terms. Your reserves, credit, and documentation can influence what is allowed. Review common DTI guidelines.
Cash reserves
Plan on 6–12 months of PITI reserves in liquid or near‑liquid accounts, and more for very large loans or second homes. Reserve rules are one of the biggest differences among jumbo lenders. See how reserve requirements vary.
Documentation
Full documentation is standard. Most buyers will provide two years of tax returns and W‑2s, recent pay stubs, bank and investment statements, and verification of employment. Self‑employed buyers may need business returns and P&Ls. Use this documents checklist.
Appraisals and valuation
Jumbo loans often require conservative valuation reviews. Larger loans may trigger two full appraisals or additional field reviews, and lenders will use the lower value for loan‑to‑value calculations. See an example of appraisal policy.
Your step‑by‑step jumbo playbook
Before you shop homes
- Pull key documents early. Gather two years of tax returns, W‑2s, recent pay stubs, and 30–60 days of bank and investment statements. Start with this checklist.
- Check your credit and fix errors. Jumbo pricing is sensitive to FICO. Why credit matters on jumbos.
- Map out cash. Plan for the down payment, closing costs, and 6–12 months of reserves. Reserve guidance overview.
Get preapproved and compare lenders
- Interview at least three options, such as regional banks, jumbo specialists, and credit unions. Ask for a written Loan Estimate from each.
- Compare required reserves, documentation, appraisal policies, rate locks, and expected timelines. Know your rights on Loan Estimates.
Craft a stronger offer
- Use a full preapproval, set realistic appraisal timelines, and consider a larger earnest money deposit if appropriate.
- If an appraisal comes in low, common paths are price negotiation, bringing extra cash, or an appraisal rebuttal. Unique properties have a higher risk of appraisal variance.
Consider alternatives and bridge options
- If your down payment is tied up in your current home, you might explore bridge financing or a HELOC to access equity before your sale closes. Compare total costs and underwriting requirements carefully across options.
Timing and closing expectations
- Jumbo loans can take longer due to manual underwriting and extra valuation steps. A 30–45+ day window from application to close is common. Confirm your lender’s timeline early. Why timelines can extend.
Costs, fees, and features to compare
- Ask for itemized Loan Estimates and compare APRs, lender fees, and rate‑lock terms across quotes. How to compare Loan Estimates.
- Understand down payment versus pricing tradeoffs, since PMI is not typical on jumbos.
- Confirm prepayment terms, interest‑only options if offered, and any additional reserve or appraisal triggers at higher loan sizes.
Local disclosures and insurance checks in Alamo
California requires Natural Hazard Disclosures that flag mapped earthquake fault, seismic hazard, flood, and fire zones. Review the NHD package closely during escrow. Explore state hazard maps and guidance.
Wildfire insurance has been a moving target in the East Bay hills. Availability and premiums can affect your overall approval and monthly budget, so verify insurability and quotes early in the offer process. See the latest from the CA Department of Insurance.
For veterans buying in Alamo
Veterans with full VA entitlement do not face county loan caps, although lenders still apply their own underwriting for very large loans and may require a down payment. A VA‑experienced lender can clarify how entitlement applies to your scenario. Review VA entitlement and loan limits policy.
Next steps
If Alamo is on your shortlist, start your jumbo planning now. A clean file, the right lender match, and a thoughtful offer strategy can save time, money, and stress when you find the right home. When you are ready, connect with Brad Gothberg for discreet guidance on financing strategy, on and off‑market opportunities, and a smooth path to closing.
FAQs
How do I know if I need a jumbo loan in Alamo?
- If your loan amount will exceed Contra Costa’s 2025 conforming limit of $1,209,750, you are in jumbo territory, which is common at Alamo price points.
What credit score and down payment help with jumbo pricing?
- Many lenders target FICO 720+ and 20% down for the best terms, with options at lower down payments depending on your profile and reserves.
How long does a jumbo loan take to close in Contra Costa?
- Plan for 30–45+ days due to manual underwriting, extra documentation, and potential second appraisals, then confirm your lender’s schedule.
What if the jumbo appraisal comes in low on an Alamo home?
- Typical options are price negotiation, bringing additional cash to close, or pursuing an appraisal rebuttal if you and your lender identify support for a higher value.
Can VA financing help me avoid a jumbo structure in Alamo?
- With full VA entitlement there is no county cap, but lenders still set underwriting for large VA loans and may require a down payment depending on risk.
Should I shop multiple lenders for a jumbo mortgage?
- Yes, request Loan Estimates from at least three lenders so you can compare rates, fees, reserve requirements, appraisal policies, and timelines side by side.
