Jumbo Loans in Los Gatos: Limits, Rates, and Qualifying

Buying in Los Gatos and hearing “you’ll need a jumbo loan”? You’re not alone. With home prices often above county limits, many buyers here finance with jumbo mortgages. You want clear answers on limits, rates, documents, and how RSUs or bonuses fit into the picture. This guide breaks it down so you can plan with confidence and write stronger offers. Let’s dive in.

What counts as a jumbo in Los Gatos

A conforming loan meets Fannie Mae and Freddie Mac guidelines and stays under the county’s conforming loan limit. A jumbo loan is any mortgage that exceeds that limit or falls outside agency guidelines.

The Federal Housing Finance Agency sets these limits each year. Before you quote a number, check the current Santa Clara County threshold on the FHFA website. Use the FHFA’s conforming loan limits page to confirm the latest figure so you know if your target price would require jumbo financing. You can also review mortgage basics on the Consumer Financial Protection Bureau’s Owning a Home guide for broader context on loan types.

• Reference: FHFA — Conforming Loan Limits
• Learn more: CFPB — Owning a Home

Jumbo loan rates and terms

Jumbo rates are often slightly higher than conforming rates, but the spread changes with the market, the lender, and your profile. In competitive climates, well-qualified borrowers sometimes see rates close to conforming. Pricing is sensitive to your loan-to-value ratio, credit, and documentation strength.

Lenders commonly look for:

• Credit score: mid-700s for best pricing is typical, with some lenders considering 700-plus with strong compensating factors.
• Debt-to-income: many aim for 43% or lower, though some allow higher with excellent reserves and credit.
• Loan-to-value: 80% or lower is common for the best terms; higher LTVs may be available with stronger profiles and more reserves.

Jumbo loans often require larger cash reserves. Expect 6 to 12 months of principal, interest, taxes, and insurance for many scenarios, with more if you own multiple properties or have complex income. Down payments of 20% or more are common for competitive pricing, though some lenders allow lower with price adjustments.

What lenders verify for jumbo

Full documentation is standard for jumbo underwriting. Be ready to provide:

• Government ID and Social Security number.
• Two most recent pay stubs covering at least 30 days.
• W-2s for the last two years, or 1099s if applicable.
• Federal tax returns for the last two years. Include business returns if self-employed.
• Two to three months of bank statements for all accounts.
• Recent investment and retirement account statements showing available reserves and any vested securities you plan to use.
• Broker statements for stock accounts, including RSUs and any 1099-B.
• Proof of the source of down payment, such as sale proceeds or gift letters.

Lenders verify liquid reserves, document large deposits, and review gift funds with a donor letter and proof of the donor’s ability to give. Learn more about how lenders verify income and assets through the CFPB’s consumer resources.

• Learn more: CFPB — Owning a Home

RSUs, bonuses, and Silicon Valley income

If your compensation includes RSUs, bonuses, or commissions, underwriting will look for history and continuity.

Here is how many lenders approach it:

• Bonuses and commissions: A two-year history is typically reviewed, and income may be averaged if your employer confirms it is likely to continue.
• RSUs: Vested shares that are liquid and documented can count as assets for down payment or reserves. Some lenders may also consider RSU income if you have a reliable vesting history and documentation. Others will only count the cash proceeds after you sell vested shares.
• Volatility and concentration: Lenders may discount stock value or require you to convert some shares to cash before closing.

Best practices if you plan to rely on equity-based comp:

• Convert a portion of vested RSUs to cash before applying, and keep clear records of the sale and deposit.
• Gather your offer letter, employment verification, and any HR letter that confirms bonus or RSU continuation where possible.
• Provide two years of W-2s and tax returns that reflect your bonus history.
• Choose lenders experienced with technology compensation packages and jumbo underwriting.

Preapproval that wins in Los Gatos

In a competitive market, a preapproval that is fully documented gives you an edge. A prequalification is just an estimate based on what you share. A preapproval means a lender has reviewed your income, assets, and credit, then issued a conditional approval subject to the property and standard conditions. Some lenders call this an underwritten or verified preapproval and it is stronger when you write an offer.

Ask for a preapproval letter that states:

• Your loan amount and type, such as a 30-year fixed jumbo, target LTV, and any key conditions.
• Which documents were verified, including income, assets, and credit.
• Lender and loan officer contact information for quick verification by the listing agent.

Tactics that help your offer:

• Include the preapproval letter and proof of funds for your earnest money deposit.
• If you rely on RSUs or bonuses, add a short note explaining how they were verified and direct questions to your lender.
• Consider contingency decisions carefully and only with professional guidance.

Shop lenders and confirm licensing to ensure you are working with a qualified team. The CFPB offers consumer tools for mortgage shopping, and you can verify lender licensing through the NMLS Consumer Access site.

• Learn more: CFPB — Owning a Home
• Verify licensing: NMLS Consumer Access

Appraisals and closing timelines

Los Gatos has a range of luxury, custom, and unique properties. Appraisals may require specialty appraisers and can take longer than average. In fast-moving markets with limited comparable sales, appraisers may use more conservative adjustments, which can affect loan conditions.

Be prepared for potential follow-up items, such as:

• Additional comparable sales or property details requested by the appraiser.
• HOA documents for condos and townhomes.
• Property repairs, septic or well reports where applicable, or other condition-related items.

For local property tax or parcel information that may come up during disclosures, the Santa Clara County Assessor’s office is a useful resource.

• Local resource: Santa Clara County Assessor

Bilingual support for a smoother process

Santa Clara County is linguistically diverse, and many buyers prefer languages other than English. If you need Mandarin or Spanish support, ask lenders and escrow companies upfront about bilingual loan officers, translators, or translated disclosures. Most Bay Area providers can accommodate these requests, but it is smart to schedule translation support well before signing.

If your income includes RSUs or bonuses, request translated explanations so you can submit the right documentation the first time. Bring a bilingual family member or advisor to meetings if it helps you feel more confident.

Quick checklist before touring homes

• Contact a lender experienced with jumbo loans and complete a full preapproval with documented income and assets.
• Gather: two years of tax returns, two years of W-2s, recent pay stubs, two to three months of bank and investment statements, RSU vesting schedules and broker statements, and employment verification.
• Confirm reserve and down payment requirements and have proof of funds for your earnest money.
• Ask for a written preapproval letter that states what was verified and includes your loan officer’s contact information.
• If you need translated documents, request bilingual support at the start.
• If using RSUs or bonuses, consider converting vested shares to cash and document the sale. Provide a two-year history and, if possible, an employer letter about continuation.

Work with a local guide

A strong jumbo strategy starts with clarity on your numbers and a plan for documentation. You will compete more effectively when your loan is verified, your assets are organized, and your appraisal risk is understood before you write. That is where a trusted, local advisor makes the difference.

If you are planning a purchase in Los Gatos or anywhere in Santa Clara County, let’s talk about your goals, timeline, and offer strategy. With bilingual Mandarin support and a personalized, Compass-backed approach, you can move forward with confidence. Schedule a free consultation with Chalet Kerr.

FAQs

What is the jumbo loan limit for Santa Clara County?

• The threshold changes annually. Check the current figure on the FHFA conforming loan limits page to see if your target price requires a jumbo loan.

Are jumbo mortgage rates always higher than conforming?

• Not always. Jumbo rates are often slightly higher, but spreads vary by lender, market conditions, loan-to-value, credit score, and documentation strength.

How much down payment and reserves do jumbo loans require?

• Many lenders favor 20% or more down and 6 to 12 months of reserves, with additional reserves for complex profiles or multiple properties.

Can I use RSUs or bonuses to qualify for a jumbo loan?

• Often, yes, with proper documentation. Lenders look for a two-year history and evidence of continuity, and may require converting vested RSUs to cash.

What makes a preapproval letter stronger in Los Gatos?

• A verified preapproval that confirms reviewed income, assets, and credit, states loan type and LTV, and includes your loan officer’s contact details helps your offer stand out.

How do I verify a lender’s licensing and specialty?

• Use NMLS Consumer Access to confirm licensing, and ask about the lender’s experience with jumbo loans and tech compensation.