According to a new study, housing prices in the Bay Area jumped 14.7 percent from 2017, and hit a new peak of $820,000 in March 2018. The new record in home prices means that if you already own a home, you probably have built up a lot of equity, which is why investing in a home in the Bay Area is such a worthy investment.

Financing high-value real estate property is not impossible, but it can be difficult given the tight inventory. Researchers say jumbo loans, which allows more expensive loans in high-cost areas, comprised 62.6 percent of all Bay Area home purchases in March 2018. A jumbo loan is a good option for California’s high-value real estate properties because jumbo loan financing is possible for loans of up to $5 million.

A jumbo loan, also known as a non-conforming loan, describes a mortgage loan exceeding the conforming loan limits set by Freddie Mac (FHLMC) and Fannie Mae (FNMA). In most U.S. counties, the conforming loan limit is $417,000, anything over that is a jumbo loan. In the San Francisco Bay area, the limit amount varies by county and can range from $417,000 to $625,000. If your desired loan amount exceeds the non-conforming loan limits in your county, a jumbo loan will cover the full amount.

Jumbo loans are available in both fixed and adjustable rate terms. Every situation is different, so we can help you understand the details of a jumbo loan and how it may work for your situation.

If you are looking to buy a home in the Bay Area and think that a jumbo loan may be for you, contact us. We would be happy to give you more information to see if will fit your needs.

For 20-plus years, Guarantee Mortgage has been helping families finance their homes and navigate the intricacies of financing in the Bay Area real estate market. We fund more than $2 billion in loans each year and want to help you fund your dream as well.