Understanding Jumbo Loans in California: 2025 Limits and Key Details

[Ken and Ari Walker]

In California, a jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by county and are based on the median home prices in each area. For 2025, the FHFA has increased the conforming loan limits by 5.2%, reflecting rising housing prices.

2025 Conforming Loan Limits

Most counties in California have a conforming loan limit starting at $806,500. However, in high-cost areas such as Los Angeles and San Francisco, the limit goes up to $1,209,000. For example:

• Sonoma County: The conforming loan limit is $897,000. Any mortgage amount exceeding this limit would be classified as a jumbo loan.

Key Features of Jumbo Loans

Jumbo loans come with specific requirements due to their higher amounts:

1. Stricter Qualification Standards: Borrowers typically need higher credit scores, larger down payments, and lower debt-to-income ratios to qualify.
2. Loan Amounts Above Conforming Limits: Any loan exceeding the FHFA limits is considered a jumbo loan.

These stricter requirements help lenders manage the increased risk associated with larger loan amounts.

How Pacific Direct Mortgage Can Help

At Pacific Direct Mortgage, we simplify the jumbo loan process. Unlike traditional lenders, our focus is on:

• Loan-to-Value (LTV) Ratios: The LTV ratio plays a significant role in qualifying for our loans.
• Repayment Ability: Our investors prioritize the borrower’s ability to repay the loan and the value of the property in case unforeseen circumstances arise.

We aim to make securing a jumbo loan straightforward and efficient, ensuring borrowers can access the funding they need without unnecessary hurdles.

Conclusion

Jumbo loans are an important tool in California’s housing market, especially in high-cost areas. By focusing on property value and repayment ability, Pacific Direct Mortgage provides a reliable option for borrowers navigating the complexities of jumbo loans. Contact us today to learn more about how we can assist with your financing needs.

Ken & Ari Walker

Husband & Wife Team
Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401
Ken: CA DRE Broker #01858042 / NMLS #1221130
Ari: CA DRE #01858152 / NMLS #2170867

Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!