Areas in California represent some of the highest median home values in the continental United States, primarily in the cities of San Francisco, Los Angeles, and San Diego. However, in Oakland, the median home values are also on the higher end compared to the national prices.
The median home value in Oakland, CA is just over $1,000,000 according to the most recent data from Redfin. The current conforming loan limit for Alameda County is set to $1,089,300.
- The 2023 conforming loan limit for Alameda County, California is $1,089,300 for a (1) unit single-family home.
- If you take out a conventional (non-government-insured) mortgage for an amount of more than $1,089,300, it will be considered a jumbo loan.
- These conforming and jumbo limits apply to all cities within the county. That includes Alameda, Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Oakland, Piedmont, Pleasanton, San Leandro and Union City.
When shopping for jumbo loans to finance higher-priced homes, most mortgage companies offer loan programs that require 20 percent down payment. Financing a home selling for $2 million would mean a down payment of $400,000 and a loan amount of $1.6mil. Some lenders even require a greater down payment, especially when the loan amount exceeds $1.5 million. When financing jumbo homes and borrowers do not wish to make such a large down payment, there are other options that are very competitive.
The jumbo mortgage options that require the lowest down payment are offered in either a 96.5%, 95% loan dual combo option. The dual loan option, sometimes referred to as a “piggyback” program also asks for just 5% down yet there are two loans instead of just one.
Mortgage companies also refer to the program as an 80-15-5. Again with a 5% down payment, there is a first mortgage at 80 percent of the sales price and a second lien which makes up the difference between the down payment and the first lien. The interest rate on the second lien is typically higher than the rate on the first lien.
When adding up the total monthly payments on both loans, the monthly payments will be very similar to one another and each has its own advantages. You’ll want to spend some time with your loan officer to determine which option is better for you and why. But don’t think that just because your bank only offers a jumbo loan that requires a 20 percent down payment there are no other choices. For well-qualified buyers, there are options up to 96.5% financing available throughout California.
Keep in mind the loan amount limit cap for the highest loan to value programs $1.5-2mil. However, approved borrowers with 10% or more down payment can finance up to $2.5mil+
All of the qualifying criteria for each program can be found on the Jumbo Purchase Page. Home buyers that have questions can call the number listed above, or just submit the Quick Call Form on this page.