San Jose Homebuyers Jumbo Loan Review For 2025

In this San Jose homebuyers jumbo loan review, we will look at the latest Jumbo loan limits and all the mortgage qualifying requirements borrowers will need to know.

It’s no secret that property values in California are some of the highest in the nation. In fact, the median home value in San Jose is sitting around $1.4m according to Zillow.  This means that many homebuyers in this area will likely take out a jumbo loan to cover the cost of their mortgage.

The good news is that Jumbo loans today come with fewer restrictions on down payments. Long gone are the days when jumbo loans required 20% down. This is especially helpful for first-time home buyers that may have limited funds for down payment and closing costs. Below, we will highlight the guidelines associated with each program. Please visit JMS here to read more details on the requirements.

San Jose Jumbo Loan vs Conforming High Balance:

First, home buyers should determine if they require a regular bank conforming loan or a jumbo loan. For most of the U.S., the base conforming loan limit for a 1-unit property is $806,500. However, Santa Clara County is considered a “high-cost” county due to the cost of living, therefore the 2025 conforming loan limit in San Jose is much higher at $1,209,750.

So any loan that exceeds this conventional loan limit of $1,209,750 would be considered a Jumbo loan regardless of the bank, broker, or lender. *Please see the limit chart below for multi-unit homes.

San Jose Jumbo Loan Down Payment & Loan Limits:

Jumbo loans are much more flexible today, and qualified buyers can finance up to 95%.  The jumbo loan limits depend on the down payment and credit profile of the borrower.  The interest rates can be slightly higher than the conforming loan, but there are some advantages, such as fewer reserves and no mortgage insurance – PMI.

5% Down Payment: Programs are limited to $2m loan amounts (680+ credit)
10% Down Payment: Programs are limited to $3m loan amounts (660 credit)
15% Down Payment: Programs up to $3.5m loan amounts.

Higher loan amounts are available with a 20%+ down payment. *Please note: down payment and loan limits can change depending on availability and property location.

All the programs above apply to primary residences. Vacation homes and investment properties are permitted, but will require a greater down payment amount.

Loan terms include all traditional fixed rate and adjustable rate options with no early payoff penalties.

Jumbo Mortgage Documentation:

It’s also important for home buyers to understand all the documentation requirements associated with Jumbo loans. Generally speaking, lenders will require much of the same paperwork required by conventional or FHA loans. Documentation will include bank statements, retirement account statements, W2s, and tax returns.

Many self-employed buyers can have issues documenting their income via traditional tax returns. Therefore, special bank statement deposit qualifying options are available up to 90% loan to value. This option allows SE buyers to qualify based on their actual business bank deposits.

Want to learn more? Please visit the California Jumbo loan page for all the details.