Shopping for a home in Kentfield often means exploring price points that sit above standard loan caps. If you are weighing cash versus financing, or comparing lenders, the term “jumbo loan” will come up early. You want clarity on what lenders expect, how appraisals work in Marin, and how to move fast without adding risk. This guide gives you a clear path, from documentation to valuation and timeline, so you can act with confidence. Let’s dive in.
What a jumbo loan is
Conforming vs. jumbo
A conforming loan meets standards set by Fannie Mae and Freddie Mac and stays within the Federal Housing Finance Agency’s county loan limits. A jumbo loan is any mortgage that exceeds that county limit and is not purchased by Fannie or Freddie. Because jumbo loans are funded by private banks and portfolio lenders, guidelines and pricing vary from lender to lender.
Why limits matter in Marin
Marin is a high-cost county. The FHFA updates conforming limits each year and allows higher caps for high-cost areas. Many Kentfield, Ross, Larkspur, Tiburon, Belvedere, and Corte Madera homes exceed those limits, so jumbo or other non‑agency solutions are common. Always confirm the current year’s limit with the FHFA or a local lender before you set a budget.
Underwriting basics to expect
Income and documentation
Jumbo underwriting is detailed. Expect recent pay stubs, W‑2s, full personal tax returns with schedules, and K‑1s or 1099s if relevant. If you are self‑employed, plan for a year‑to‑date profit and loss and sometimes business tax returns. Alternative documentation programs exist, but they often carry tighter caps and higher costs.
Assets and reserves
Lenders verify liquid and non‑liquid assets across accounts. Large deposits usually need sourcing and seasoning with 60 days or more of statements. Jumbo programs often require 6 to 12 months of PITI in reserves for a primary residence. Second homes and investment properties usually need more.
Credit and DTI
Strong credit is key. Many lenders look for mid‑700s FICO for best pricing, with common minimums around 700. Debt‑to‑income ratios are often capped near 43 to 45 percent, though portfolio lenders may flex if you have significant assets.
Down payment and LTV
Maximum loan‑to‑value ratios are typically lower than conforming guidelines. For a primary home, 70 to 80 percent LTV is common, with higher down payments often unlocking better pricing or terms. Second homes and investment properties usually require lower LTVs and higher reserves.
Rates, fees, flexibility
Jumbo rates have historically run higher than conforming loans, although the spread changes with market conditions. You may see higher lender fees and more appraisal scrutiny. The tradeoff is flexibility, since portfolio lenders can tailor solutions like interest‑only terms or short‑term bridge financing when a standard program does not fit.
Appraisals in Kentfield
Full appraisals are standard
For high‑value properties, expect a full interior and exterior appraisal by a certified appraiser who knows the local luxury market. Automated valuation models are rarely relied on for jumbo approvals.
Comps and valuation challenges
Marin has limited luxury inventory and many unique homes. Appraisers may widen the radius to nearby towns or extend the look‑back period to find relevant comparable sales. This adds subjectivity and can lead to gaps between contract price and appraised value, especially when bidding wars push pricing.
Renovations and ADUs
If you are buying a recently renovated home or planning improvements, the lender may require contractor bids, plans, and a cost‑to‑complete estimate. Some lenders order an as‑completed appraisal. Accessory dwelling units, converted garages, or any unpermitted work must be disclosed, since they can affect value and eligibility.
Timelines and contingencies
Appraisals for luxury property often take 7 to 14 business days, sometimes longer during busy periods. For larger loans, a lender may request a second appraisal or a desk review. Build appraisal timing into your offer strategy and set contingency dates that match local conditions.
Local factors that affect approval
Property taxes and Proposition 13
In California, Proposition 13 limits annual increases for existing owners, but a change in ownership triggers reassessment. Your taxes can reset at the new market value and you may receive supplemental tax bills after closing. These numbers flow into your PITI and reserve calculations, so plan for them early.
Insurance and risk
Standard homeowner’s insurance is required. Earthquake coverage is optional, yet many Marin buyers evaluate it because of regional seismic risk. Wildfire risk and insurance availability have shifted across California, so confirm carrier options and premiums for your specific property. Some waterfront or low‑lying areas may require flood insurance based on FEMA mapping.
Environmental considerations
Parts of Marin include slope stability, landslide zones, wetlands, or septic systems. These conditions can shape appraisal outcomes and lender acceptance. Address them early with your agent and lender so there are no surprises.
Condo and PUD checks
If you are buying a condo with jumbo financing, expect project‑level reviews. Lenders look at budget health, owner‑occupancy ratios, and other factors. Some projects need additional documentation when they are not already eligible under agency standards.
How to prepare to win
Early steps
- Confirm the current Marin County conforming loan limit with the FHFA or your lender.
- Secure a true jumbo pre‑approval, not just a pre‑qualification. Your letter should show max LTV, required reserves, and any special conditions.
- Align your offer terms, contingency timing, and deposit strategy with lender timelines.
Document checklist
- Government ID and Social Security number
- Last 2 years of personal tax returns with all schedules
- Last 2 years of business returns if applicable
- Last 30 to 60 days of pay stubs for W‑2 income
- W‑2s for 2 years
- Year‑to‑date profit and loss and balance sheet if self‑employed
- 2 to 3 months of bank statements, sometimes more for reserves
- Retirement and brokerage statements to verify assets
- Purchase agreement and HOA documents if applicable
- Letters of explanation for gaps, large deposits, or credit inquiries
Timeline overview
- Pre‑approval: 3 to 7 business days based on readiness
- Appraisal: 7 to 14 business days, sometimes longer
- Underwriting: 7 to 21 business days, more if assets or income are complex
- Typical escrow: 30 to 45 days, faster if your file is fully prepared
Choosing a lender
- National banks: consistent programs and predictable processing, sometimes conservative on LTV and reserves
- Regional banks or credit unions: local knowledge and speed on certain property types
- Portfolio or private banks: tailored structures, asset‑based options, bridge financing
- Non‑bank lenders: specialized programs such as bank‑statement jumbos, with varied timelines
Financing options for HNW buyers
Asset‑based and portfolio solutions
Asset‑depletion loans can convert liquid assets into qualifying income when cash flow is uneven. Portfolio loans are held on the lender’s balance sheet, which allows custom terms for concentrated stock positions, complex entities, or cross‑border income.
Bridge and interest‑only structures
Bridge loans help you purchase before selling another property. Some lenders also offer interest‑only or balloon structures that can smooth cash flow. These carry risk, so weigh them against your broader financial plan.
Seller tips when your buyer uses jumbo
- Request a current pre‑approval letter that names the program and outlines reserves and LTV.
- Ask the lender or buyer about appraisal strategy, including any plan for a second appraisal or review.
- Confirm the buyer understands supplemental tax bills and insurance requirements that affect PITI.
- Structure contingencies and timelines that reflect appraisal and underwriting realities.
- Consider larger earnest money or appraisal gap language if multiple offers push price beyond recent comps.
Bringing it all together
Jumbo financing is common in Kentfield and across Marin. With strong preparation, the right lender fit, and realistic appraisal timing, you can compete with confidence. Whether you are optimizing a purchase strategy or planning a discreet sale, a calm, informed approach will protect value and reduce stress.
If you want tailored guidance for your next move in Marin, connect with Adriana Petersen for clear strategy, discreet execution, and white‑glove support through closing. Adriana Petersen
FAQs
What makes a loan “jumbo” in Marin?
- A jumbo loan exceeds the FHFA conforming limit for the county, which places it outside Fannie Mae and Freddie Mac purchase guidelines and into private or portfolio lending.
How much down payment do jumbo lenders want?
- Many programs target 70 to 80 percent LTV for a primary home, with some requiring higher down payments based on credit, property type, and reserves.
How long does a jumbo appraisal take in Kentfield?
- Luxury appraisals often run 7 to 14 business days, and high‑dollar loans may add a second appraisal or desk review that extends timing.
What reserves do I need for a jumbo loan?
- Primary residence guidelines commonly call for 6 to 12 months of PITI in verified reserves, with higher amounts for second homes or investment properties.
Can I qualify using assets or stock instead of salary?
- Yes, some lenders offer asset‑depletion or portfolio programs and may count vested stock or convert assets into qualifying income with proper documentation.
What if the appraisal comes in below my offer?
- Options include bringing additional cash, renegotiating price, requesting a review or second appraisal, or using contingencies to exit if allowed by the contract.
