Are you wondering if your Tiburon or Belvedere home purchase will require a jumbo loan? You are not alone. In Marin’s high‑value market, it can be tricky to tell where conforming ends and jumbo begins, and what that means for rates, paperwork, and timing. This guide breaks it down in plain language so you can plan your budget, shop lenders with confidence, and write stronger offers. Let’s dive in.
What counts as jumbo in Tiburon/Belvedere
A conforming loan meets Fannie Mae and Freddie Mac rules and size limits. In high‑cost markets like Marin County, there is a higher high‑balance conforming limit for eligible properties. A jumbo loan is any mortgage that exceeds your county’s conforming or high‑balance maximum for the property type.
Here is the simple test: Loan amount = purchase price minus your down payment. If your loan amount is above the Marin County limit for your unit count, it is jumbo. You should always verify the current year’s Marin County 1‑unit (or 2–4 unit) limit on the FHFA site before you finalize plans.
A quick example can help: A $3,000,000 purchase with 20% down results in a $2,400,000 loan. That loan size is above high‑balance limits in recent years, so it would be jumbo. If you are close to the boundary, compare your calculated loan amount to the current FHFA list to know for sure.
Conforming vs. jumbo: key differences
Rates and pricing
Jumbo loans often carry a modest rate premium compared to similar conforming products, but the spread changes with market conditions and lender appetite. Your rate depends on your credit score, loan‑to‑value ratio, reserves, and whether you choose a fixed or adjustable product. At times, jumbo pricing can be very close to conforming. You will want written quotes from multiple lenders to see where the market is today.
Underwriting at a glance
- Credit score: Many conforming options allow mid‑600s with program conditions. For best jumbo pricing, lenders commonly look for 700–740+.
- Down payment and LTV: Conforming can go as high as 97% LTV with program rules and PMI. Jumbos often prefer 20%+ down, though some offer lower down options with tighter requirements.
- Debt‑to‑income: Agency guidelines often center around 43% DTI. Jumbo programs may require lower DTI or stronger compensating factors like large assets.
- Reserves: Conforming loans may need limited reserves. Jumbo loans often ask for 6–12 months of PITI, especially at higher LTVs.
Documentation and appraisal
Jumbo underwriting is typically more detailed. Expect deeper reviews of bank and investment accounts, explanations for large deposits, and more years of tax returns if you are self‑employed or have complex income. High‑value properties can require more extensive appraisals and sometimes a second appraisal, especially when there are few comparable sales.
Loan options for Marin luxury buyers
- High‑balance conforming: If your loan amount fits within the Marin County high‑balance limit, you keep agency benefits and standardized underwriting.
- Conventional jumbo: The most common route above the limit. Terms vary by lender and borrower profile.
- Portfolio loans: Kept on a lender’s books. These can be more flexible on documentation or structure, but pricing and terms are lender‑specific.
- Non‑QM and specialty: Options like bank‑statement, asset‑depletion, or interest‑only are tailored to certain profiles, often for high‑net‑worth buyers with nontraditional income.
- VA jumbo: Eligible veterans may access loan amounts above conforming limits based on VA rules and lender policies.
- Piggyback structures: An 80/10/10 or similar can help avoid PMI or reduce a jumbo loan size. Always compare total costs and complexity.
How to check your loan type in minutes
- Confirm the current Marin County FHFA limit for your unit count. Limits update each year.
- Calculate your loan: purchase price × (1 − down payment percentage). Example: $2,200,000 with 25% down equals a $1,650,000 loan.
- Compare your loan amount to the Marin County limit. If it is above the cap, it is jumbo.
If you are buying a 2–4 unit property, remember that FHFA sets different limits by unit count. Verify your property type before you decide.
Pre‑approval checklist for Tiburon/Belvedere
Getting fully pre‑approved is the best way to compete in Tiburon and Belvedere, especially at higher price points.
- Income documents: Recent pay stubs, W‑2s, and two years of tax returns. If self‑employed, add year‑to‑date profit and loss, 1099s, K‑1s, and business bank statements.
- Assets and reserves: 60–120 days of statements for bank, brokerage, and retirement accounts. Be ready to document large deposits and gift funds.
- Credit housekeeping: Check scores early, resolve disputes, and avoid new debt while you shop.
- Appraisal planning: High‑value homes can require deeper valuation work. Build time into your timeline and consider a plan if the appraisal comes in low.
- Lender shopping: Ask about jumbo minimums for credit score, reserves, appraisal rules, bridge financing options, and closing timelines.
Timing and costs to expect
Jumbo and conforming loans can close on similar timelines, but jumbo underwriting and appraisals can add steps. Plan for 30–45 days depending on lender and property complexity. Appraisals and inspections on luxury homes can cost more due to specialized expertise and limited comparable sales. Some lenders may also charge higher origination or have overlays on top of their base guidelines.
Buyer and seller tips in a high‑price market
- Buyers: Get a full‑doc pre‑approval early, especially if your loan will be jumbo. Strong reserves, a clear paper trail for assets, and a well‑chosen lender make your offer more competitive.
- Sellers: Many Tiburon and Belvedere listings attract jumbo borrowers. Buyers who present complete jumbo pre‑approvals and proof of funds reduce the risk that financing will fall through.
- Everyone: Unique features like waterfront views or custom construction can complicate appraisals. Work with professionals who understand Marin’s micro‑markets.
Bottom line
In Tiburon and Belvedere, many purchases will cross into jumbo territory unless you make a very large down payment. The key is to confirm your county limit, calculate your loan amount, and pick a lender who knows jumbo underwriting and the Marin market. With clear preparation, your financing can match the pace and expectations of a competitive offer.
If you are planning a purchase or sale and want a local guide who can help you prepare, introduce you to experienced lenders, and position your offer or listing for success, reach out to Greg Corvi. Request a complimentary home valuation & consultation.
FAQs
How do I know if my Tiburon purchase needs a jumbo loan?
- Calculate your loan amount by subtracting your down payment from the purchase price. If the loan exceeds the current Marin County conforming or high‑balance limit for your unit count, you need a jumbo.
Do jumbo loans always have higher rates than conforming in Marin?
- Not always. Jumbos often have a premium, but it varies by market, lender, and your profile. Strong credit, larger down payment, and healthy reserves can narrow or remove the spread.
What down payment should I expect for a jumbo in Belvedere?
- Many lenders prefer 20% or more. Some offer lower down options with tighter rules or higher rates. Many luxury buyers target 25–30% to improve terms.
How long does a jumbo loan take to close in Marin County?
- Often similar to conforming timelines, but plan for appraisal and deeper asset reviews. A 30–45 day window is common depending on lender and property.
Can I get PMI on a jumbo loan for a Tiburon home?
- Standard PMI applies to conforming loans only. Jumbo lenders usually require larger down payments, offer lender‑paid MI in some cases, or use piggyback seconds where available.
