Are you looking at homes in Cupertino and realizing the numbers point to a jumbo loan? You’re not alone. In Santa Clara County, home prices often exceed national conforming limits, so jumbo financing is common for buyers across Silicon Valley. In this guide, you’ll learn how jumbo loans work, what lenders look for, and how to prepare with tech-friendly documentation so you can move with confidence. Let’s dive in.
Jumbo basics in Cupertino
A jumbo loan is any mortgage that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency for your county. In Santa Clara County, many homes are priced above that line, which makes jumbo loans a frequent path to ownership. Because these loans are not purchased or guaranteed by Fannie Mae or Freddie Mac, lenders set different underwriting rules.
For you, that means stronger credit requirements, larger down payments or reserves, and more detailed documentation. It also means you should compare lenders carefully, since jumbo pricing and terms can vary more than conforming loans.
How underwriting differs
Jumbo underwriting follows lender and investor guidelines rather than standardized conforming rules. Here are common differences you will see:
- Credit scores: Many programs look for 700 to 760 or higher, depending on the loan size and product.
- Down payment and LTV: A 20 to 30 percent down payment is common. Some programs allow less with tighter terms or added reserves.
- Debt-to-income ratio: Maximum DTIs often sit in the low to mid 40 percent range. Higher DTIs may be possible with strong compensating factors.
- Reserves: Expect 6 to 12 months of mortgage payment reserves, sometimes more for higher loan amounts or complex profiles.
- Documentation: Full documentation is standard. Nontraditional income, such as RSUs, stock options, or bonuses, requires careful review and may be treated differently by each lender.
- Appraisal depth: High-value properties can require more detailed appraisals, additional comparable sales, or a second review.
Loan types you will see
You will find several jumbo options in Silicon Valley. Each serves a different borrower profile.
- Conventional jumbo: Suited to borrowers with strong credit and clear W-2 or 1099 income.
- Portfolio loans: Bank-held loans with more flexibility on income, assets, or property types, useful for self-employed or complex compensation.
- Asset-based or bank-statement jumbos: Designed for buyers with significant liquid assets or investment holdings but less traditional income documentation.
- Private bank lending: Custom options for high-net-worth clients who maintain assets with the institution.
- Adjustable-rate jumbos (ARMs): Lower initial rates can fit buyers who plan to refinance or sell within a few years. Weigh the future rate risk.
- Construction, renovation, or jumbo HELOCs: Specialized products for building, major upgrades, or accessing equity.
Silicon Valley income and RSUs
Many Cupertino buyers are paid through a mix of base salary, RSUs, bonuses, and sometimes options. Lenders handle these differently:
- RSUs: Vested and consistent RSU income may count, but unvested grants usually do not. You will need vesting schedules and a history of realized income.
- Bonuses and commissions: Often averaged over two years to show consistency and likelihood of continuation.
- Stock options: Typically not considered stable income unless you can document a history of realization.
The key is to work with lenders that regularly underwrite tech compensation. Prepare documentation early so your pre-approval reflects your full financial picture.
Costs, appraisals, and timelines
Jumbo loans can carry higher closing costs because property values are higher and appraisals are more complex. Title, escrow, and appraisal fees often scale with price. Timelines can be similar to conforming loans if your documentation is complete, but complex income or property features may add steps.
Budget for property taxes and insurance at higher home values. Some properties may require specialty coverage based on risk. Lenders will include these in your monthly housing expenses when calculating affordability.
Smart steps before you shop
Start by clarifying if your target price will require jumbo financing based on the current FHFA limit for Santa Clara County. Then build a plan:
- Get fully pre-approved, not just prequalified, with lenders experienced in Silicon Valley jumbo loans and tech income.
- Compare total loan costs across at least two lenders, including APR, points, and any lender overlays that could affect approval.
- Organize documents: two years of tax returns, recent pay stubs and W-2s or 1099s, bank and brokerage statements, RSU grant and vesting schedules, and records for any large deposits or gift funds.
- Decide your down payment and reserve strategy. Many lenders want 6 to 12 months of reserves after closing.
- If you plan to use stock proceeds, discuss documentation and timing early so funds are properly seasoned.
Risks and trade-offs
- Are jumbo rates always higher? Not always. Depending on market conditions and investor demand, jumbo rates can be similar to or even lower than conforming rates. Always compare real quotes.
- Is less than 20 percent down possible? Some lenders offer lower down payment options, but you may see higher rates, tighter guidelines, or larger reserve requirements. Traditional PMI is rarely used with jumbos.
- Will it take longer to close? It can, due to more in-depth reviews and appraisals. Experienced teams still close on standard timelines when documentation is complete.
Buyer checklist
Use this quick reference to stay on track.
- Verify the current FHFA conforming loan limit for Santa Clara County.
- Get full pre-approvals from at least two jumbo-experienced lenders.
- Prepare documentation: 2 years of tax returns, pay records, bank and brokerage statements, RSU and option documentation, and history of bonuses or commissions.
- Set a target down payment and reserve buffer, aiming for 6 to 12 months of payments in reserve.
- Compare total costs: rate, APR, points, lender fees, appraisal costs, and any credits.
- If buying a condo, confirm project eligibility and HOA status early.
- Ask how the lender handles appraisal reviews and what happens if the appraised value is lower than the contract price.
- Plan the timing of stock sales if using proceeds for your down payment and confirm documentation needs.
- Include taxes, homeowner’s insurance, and any required specialty coverage in your monthly budget.
Your next move
Jumbo financing is common in Cupertino, so the best edge you can give yourself is preparation. A strong pre-approval that accounts for RSUs and bonuses, clear documentation, and the right loan structure will help you compete with confidence. If you want a calm, data-informed path through Silicon Valley’s jumbo market, we are here to help.
Request your free neighborhood market report and home valuation with TN Realty. Our owner-led, bilingual team will guide you through pricing, preparation, and offer strategy so you can buy with clarity in Cupertino and across Santa Clara County.
FAQs
What is a jumbo loan in Santa Clara County?
- A jumbo loan is any mortgage that exceeds the county’s conforming loan limit set by the FHFA, so it follows lender-specific underwriting instead of conforming rules.
Are jumbo mortgage rates higher than conforming rates?
- Not always. Jumbo pricing changes with market conditions and lender strategies, so rates can be similar to, higher than, or occasionally lower than conforming loans.
Can I get a jumbo loan with less than 20 percent down?
- Some programs allow it, often with stricter credit, higher pricing, or larger reserve requirements. Traditional PMI is rarely used on jumbo mortgages.
How are RSUs treated for jumbo loan qualification?
- Vested and consistently realized RSU income may be counted, with full documentation. Unvested RSUs are usually not counted as income.
Do jumbo loans take longer to close in Cupertino?
- They can, due to more detailed documentation and appraisal requirements. With complete files and experienced lenders, timelines can still be competitive.
What should I prepare before a jumbo pre-approval?
- Two years of tax returns, pay records, bank and brokerage statements showing reserves, RSU vesting schedules, and documentation for bonuses, commissions, and large deposits.
