Shopping for a home in Mill Valley and hearing the term “jumbo loan” everywhere? You’re not alone. In Marin County’s high-cost market, many single-family homes and move-up purchases require financing above standard limits. In this guide, you’ll learn what counts as a jumbo in Marin, what lenders expect, how rates and products differ, and how to prep so your offer stands out and closes smoothly. Let’s dive in.
Why jumbo loans matter in Mill Valley
Mill Valley and greater Marin County are high-cost markets, so many listings sit above the federal conforming loan limit. That pushes a large share of buyers into jumbo financing for primary homes and second homes. Local features such as views, larger lots, extensive remodels, and ADUs often lift prices into the multi-million range and create unique comps. That combination increases the use of portfolio or non-conforming lenders and sometimes requires specialized appraisals.
What counts as a jumbo in Marin
A jumbo loan is any mortgage amount that exceeds the Federal Housing Finance Agency’s conforming loan limit for the county. Conforming loans can be purchased by Fannie Mae or Freddie Mac; jumbo loans cannot. For 2024, the baseline national limit for a one-unit property was $766,550, and many high-cost counties have a higher ceiling equal to 1.5 times the baseline. You should check the current FHFA county limit for Marin before assuming a loan type. If your purchase price minus your down payment exceeds that limit, your loan is a jumbo.
Jumbo loans commonly fall into a few buckets:
- Traditional jumbo: Slightly above the conforming limit up to lender thresholds.
- Super-jumbo: Larger balances, often $2–3 million or more, with tighter review and different pricing.
- Portfolio jumbo: Loans a bank keeps on its balance sheet. Underwriting can be more flexible but varies widely.
- Non-QM or bank-statement programs: Options for self-employed or complex income profiles, usually with higher rates or fees.
In Mill Valley, even modest single-family homes can require jumbo financing, so it pays to prepare early.
What lenders expect from buyers
Down payment and LTV
Typical jumbo financing requires higher down payments than conforming loans.
- Primary residence: 10 to 20 percent down is common, with 20 percent often unlocking better pricing.
- Second homes: Frequently 20 percent or more.
- Investment properties: Usually 25 to 30 percent or more.
Some portfolio lenders allow 10 percent down with strong compensating factors such as excellent credit, large reserves, and a low debt-to-income ratio.
Cash reserves
Jumbo loans often require more verified reserves than conforming loans. Plan for:
- Primary residence: About 6 to 12 months of PITI (principal, interest, taxes, insurance) with conservative lenders.
- Strong profiles: Some lenders accept 3 to 6 months if you have very strong compensating factors.
- Second homes and investment properties: Often 6 to 12 months or more.
Reserves come from verified liquid assets like checking, savings, and brokerage accounts. Retirement accounts may count with adjustments. Gift funds can help with the down payment but usually cannot satisfy reserve requirements.
Credit scores and DTI
For the best pricing, many lenders look for credit scores at or above 700, with 740+ often qualifying for top-tier pricing. Debt-to-income (DTI) caps often land between about 43 and 50 percent, depending on credit, assets, loan size, and documentation. Larger reserves, lower LTV, and strong credit can help you qualify on the higher end of that range.
Income documentation options
Most buyers use full documentation with W-2s, pay stubs, and tax returns. If you are self-employed or have complex income, lenders may analyze two years of tax returns or offer bank-statement programs at a higher cost. Some high-asset buyers may qualify with asset depletion or asset-qualifying programs, which require larger reserves and careful structuring.
Appraisals and valuation in Mill Valley
Luxury and luxury-adjacent properties often have fewer true comparables. Appraisals may use a wider search radius and require careful adjustments for views, acreage, or unique remodels. On higher-risk or super-jumbo loans, lenders may require a second appraisal or a review appraisal. Appraisal timelines can run longer in thin-comp segments, and value debates can be more common on unique properties.
Other local underwriting factors
- Property taxes and HOAs: High property taxes, special assessments, and sizable HOA dues can increase required reserves and affect your DTI.
- ADUs and rental income: Some lenders may allow a portion of ADU rental income if it is well documented on leases or tax returns, but policies vary.
Rates, products, and pricing
How jumbo rates move
Jumbo rates have historically been a bit higher than conforming rates, but the spread changes with market conditions. Treasury yields, lender funding costs, and investor demand all influence pricing. A bank’s appetite to keep loans in portfolio can also change rates or fees. Your rate depends on loan size, LTV, credit score, occupancy, and documentation type.
In some periods, jumbo pricing is close to conforming. In others, especially during market stress, spreads widen. It is smart to compare multiple lenders and product types.
Product choices you’ll see
- Fixed-rate 30-year and 15-year: Popular for predictability. The 15-year often comes with a lower rate but higher monthly payment.
- ARMs (5/1, 7/1, etc.): Lower initial rates for buyers who expect to refinance or sell before the first adjustment window.
- Interest-only: Available from some portfolio lenders. These can aid near-term cash flow but carry more long-term payment risk.
- Portfolio jumbo and private bank lending: Customized structures for unusual income or asset profiles.
- Non-QM and bank-statement loans: Useful for self-employed buyers who need alternative documentation.
Fees, pricing, and locks
Expect higher fees or rate add-ons for higher LTV, lower credit scores, investment properties, non-standard property types, super-jumbos, and non-traditional documentation. Rate-lock strategy matters. Ask about lock periods, extensions, and float-down options if rates improve during escrow.
A Mill Valley jumbo-buying checklist
- Get fully pre-approved, not just pre-qualified. Provide documentation up front so you can move quickly when you go under contract.
- Organize assets. Gather 60 to 90 days of statements for checking, savings, and brokerage accounts, and recent retirement statements if relevant.
- Plan reserves early. Target 6 to 12 months of PITI for many jumbo scenarios, and more for second homes or investments.
- Clarify gift funds. Obtain gift letters and donor documentation if using gifts. Remember, gifts usually cannot count as reserves.
- Discuss appraisal paths. If the property is unique or has few comps, talk through appraisal expectations and timing before you write an offer.
- Consider bridge strategies. If you are selling a high-value home, a bridge loan or jumbo HELOC may help with down payment timing. These products have different costs and underwriting.
- Build timeline cushion. Budget 30 to 45 days or longer from application to close, depending on the lender and property.
How to compare lenders in Marin
Consider getting quotes from three lender types: a national mortgage bank, a regional or community bank or credit union that keeps loans in portfolio, and a seasoned mortgage broker who can shop multiple wholesale lenders. For high-net-worth buyers, private banks can offer relationship pricing.
Ask each lender for:
- A clear written quote showing rate, points, lender credits, fees, and lock terms.
- A documentation checklist for a full pre-approval.
- Typical appraisal and underwriting timelines for similar Mill Valley loans.
- Examples of comparable jumbo loans they have closed in Marin County.
A simple timeline to closing
- Pre-approval: 1 to 7 days, depending on how fast you provide documents. Get this done before you write offers.
- Application and disclosures: 1 to 3 days after contract acceptance.
- Appraisal and title work: Often the pacing item for jumbos. Expect 1 to 3 weeks, longer for unique properties.
- Underwriting and conditions: 1 to 2 weeks after appraisal, plus time for any conditions.
- Final approval and closing: Once conditions are cleared, loan docs go out, you sign, and the loan funds.
Strategy tips for winning offers with jumbo financing
- Lead with strength. A fully documented pre-approval shows sellers you are serious.
- Be realistic on contingencies. Appraisals on unique homes can take longer. Shorten only when your lender confirms the timeline.
- Mind your reserves and liquidity. Large, clean reserves can help you qualify and reassure sellers you can close.
- Match product to plan. If you expect to refinance or move in a few years, compare ARM pricing against fixed-rate options.
- Lock smart. Discuss lock length, potential extensions, and float-down options so rate moves do not surprise you.
The bottom line for Mill Valley buyers
In Marin’s high-cost market, jumbo loans are common and workable when you plan ahead. Expect higher down payments, larger verified reserves, thorough documentation, and more complex appraisals on unique homes. The right preparation, product selection, and lender fit will help you move from accepted offer to smooth close.
If you want help aligning your financing strategy with your Mill Valley search and offer plan, reach out to Nick Svenson to schedule a 15-minute consultation.
FAQs
What is a jumbo loan in Marin County?
- It is any mortgage amount that exceeds the FHFA conforming loan limit for Marin County; if your loan amount is above the county limit, it is a jumbo.
How much down payment do Mill Valley jumbo loans require?
- For primary residences, plan for 10 to 20 percent down, with 20 percent often delivering better pricing; second homes and investments typically require more.
How many months of reserves do jumbo lenders want?
- Many lenders expect about 6 to 12 months of PITI for primary homes, and often more for second homes or investment properties.
What credit score and DTI help with jumbo approval?
- Scores of 700+ are common for competitive pricing, with 740+ often best; DTI caps usually fall near 43 to 50 percent depending on your overall profile.
Are jumbo rates much higher than conforming rates?
- It depends on markets and lender appetite; sometimes the spread is small, other times wider, so it pays to compare multiple lenders.
Why are appraisals tricky for Mill Valley jumbo homes?
- Unique features like views, larger lots, and custom remodels reduce direct comps, which can lengthen timelines and lead to additional appraisal reviews.
How long does a jumbo loan take to close in Marin?
- Budget 30 to 45 days or longer from application to closing, depending on property complexity, appraisal timing, and documentation speed.
