Thinking about moving up in Kentfield and wondering if your financing will be considered “jumbo”? You are not alone. Many homes in Marin sit above the conforming loan limit, which can change how lenders review your file. In this guide, you will learn what makes a loan jumbo, how underwriting differs, what down payments and reserves lenders usually expect in Kentfield price bands, and how to prepare for a strong pre-approval. Let’s dive in.
Jumbo loans in Marin: the cutoff
A loan becomes “jumbo” when it exceeds the conforming loan limit for the county. These limits are set yearly by the Federal Housing Finance Agency. Marin is a high-cost county, so the limit is often higher than the national baseline and can change each year.
You should verify the current Marin County limit before you start. You can check it on the FHFA conforming loan limits page or ask a local mortgage professional. If your target loan amount is above that number, you will likely use jumbo financing.
Why this matters in Kentfield: purchase prices and loan sizes often sit above the limit, which means different underwriting rules, pricing, and documentation.
How jumbo underwriting differs
Jumbo loans are usually held in a lender’s portfolio or placed with private investors. That gives lenders more discretion, but it often means more conservative guidelines.
Credit, DTI, and reserves
- Credit score: Lenders often want higher scores for the best jumbo pricing, commonly in the mid-700s or higher.
- Debt-to-income ratio: Some programs allow DTIs up to 50 percent with strong compensating factors, although many aim lower. Expect more scrutiny of your overall picture.
- Reserves: You may need more months of reserves than a conforming loan. Reserves are counted as months of principal, interest, taxes, and insurance.
Down payment and mortgage insurance
- Down payment: Many jumbo programs require 10 to 20 percent down for primary residences. Higher loan sizes or weaker credit can push that to 25 to 30 percent or more.
- Mortgage insurance: Traditional mortgage insurance used with conforming loans is generally not available on jumbos. Buyers who want lower down payment options sometimes use a second mortgage or specialty portfolio programs, each with tradeoffs.
Documentation and income
- Salaried borrowers: Expect two years of W-2s and tax returns, recent pay stubs, and full asset statements.
- Self-employed or 1099: Lenders often ask for two years of personal and business tax returns, a year-to-date profit-and-loss statement, and business bank statements. Bank-statement or non-QM programs exist, but they often require larger reserves and come with higher pricing.
- Income recognition: Rental income, 1099 income, and bonuses receive closer review. Some sources may be averaged over two years or excluded if not stable.
Appraisals and pricing
- Appraisals: In luxury neighborhoods with limited comparable sales, a second appraisal or review is more common. Lenders may request extra market analysis.
- Rates and fees: Jumbo rates can be higher or similar to conforming depending on market conditions, loan size, and your profile. Pricing varies by lender.
For mortgage basics and your rights as a borrower, the CFPB mortgage guide is a helpful primer.
What to expect by Kentfield price band
The ranges below reflect common lender expectations in high-cost Northern California markets. Your exact requirements will depend on your lender and profile.
Lower luxury band: near the limit to about $1.5M
- Down payment: 10 to 20 percent, with 20 percent often needed for better pricing.
- Reserves: 6 to 12 months of PITI.
- Credit: Mid-700s often targeted for stronger terms.
- Notes: If your loan is just over the limit, some lenders offer slightly more flexible programs, but expect careful review of reserves and documentation.
Mid luxury band: about $1.5M to $3M
- Down payment: 15 to 25 percent, with 20 percent common to secure competitive pricing.
- Reserves: 9 to 12 months of PITI, with 12 months common for stronger files.
- Credit: 740 or higher is recommended for best pricing.
- Notes: Reserve needs usually increase with loan size. Pricing tiers can shift noticeably above $2 to $2.5 million.
Upper luxury band: $3M and above
- Down payment: 20 to 35 percent, with 25 percent or more common for the strongest offers.
- Reserves: 12 to 24 months of PITI depending on lender and borrower profile.
- Credit: 740 to 760 or higher is typically preferred. Complex income or asset structures may favor relationship banks.
- Notes: Portfolio and private banking solutions are common. Some buyers use a first mortgage plus a HELOC or second lien to meet lender thresholds.
Assets, gifts, and seasoning
- Gift funds: Often allowed for part of the down payment on a primary home, but expect gift letters and donor documentation.
- Retirement accounts: Many lenders count a portion of vested retirement balances as reserves. Policies vary, and some cap the percentage that can be counted.
- Large deposits: Recent large deposits must be sourced. Lenders will ask for statements that show where the funds came from.
Prepare for a stronger pre-approval
A clean, complete file gives you leverage in offer negotiations. Start early, especially if you are self-employed or plan to use gifts or retirement funds.
Checklist for salaried buyers
- Government ID
- Recent pay stubs covering 30 days
- Two years of W-2s and federal tax returns with all schedules
- Two to three months of bank and investment statements
- Mortgage statements for any current properties
- Gift letters and donor statements if applicable
- Explanations for employment gaps, large deposits, or credit inquiries
Checklist for self-employed, 1099, or commission-heavy buyers
- Two full years of personal and business tax returns with all schedules
- Year-to-date profit-and-loss or balance sheet, sometimes CPA prepared
- Business and personal bank statements to document cash flow
- If using a bank-statement program: expect longer histories, higher reserves, and higher pricing
Smart prep for assets and timing
- Plan transfers: If you will use stock proceeds or retirement funds, plan the transfer timeline so funds are seasoned in your accounts.
- Simultaneous sell and buy: If you want to buy before you sell, be ready to document bridge financing or reserves that cover both homes.
- Property taxes and HOAs: Lenders include taxes and dues in your payment calculation. Higher amounts impact DTI and reserve requirements.
Appraisals in Kentfield and nearby luxury micro-markets
Kentfield has many unique properties, from view homes to estate lots. Limited comparable sales can make valuations difficult.
- Scarcity of comps: Appraisers may have to reach farther for comparables. Your lender might order a second appraisal or a review.
- Listing history and time on market: A longer market time on comparable sales can trigger extra questions about marketability.
- Condos and small associations: Older or small associations may face stricter project reviews. Confirm any HOA reserve and project requirements early.
Tip: Share your agent’s comparative market analysis and a list of relevant nearby sales with your lender and appraiser when possible. It can help frame value in a micro-market where comps are thin.
Financing options and strategies
Choosing the right lender type and structure can improve both approval odds and pricing.
Lender types to consider
- Big national lenders: Streamlined process and standardized products, but less flexibility with non-traditional income.
- Regional banks and credit unions: Often competitive on jumbo pricing and more flexible if you have a relationship.
- Portfolio or private banks: Keep loans in house and can underwrite to different criteria. Popular with larger balances or complex files.
- Mortgage brokers: Can shop multiple lenders and specialty programs to find a fit for your profile.
Common strategies used in Marin
- Larger down payment: Can drop you into a lower risk tier and reduce reserve requirements.
- 80-10-10 piggyback: First mortgage at 80 percent, second at 10 percent, and 10 percent down. Availability varies and second liens add complexity.
- Interest-only or adjustable-rate products: Available from some portfolio lenders. Qualifying rules can be stricter and reserves higher.
- Bridge loans and HELOCs: Help you buy before you sell. These can impact DTI and reserves, so build a plan with your lender.
- Private banking or relationship lending: Deposits or investments with a bank can lead to more flexible underwriting or pricing.
Next steps for Kentfield move-up buyers
- Confirm whether you are in jumbo territory by checking the FHFA conforming loan limits.
- Speak with a mortgage professional who regularly places jumbo loans in Marin. Ask for a written list of down payment, reserve, and documentation requirements for your target price range.
- Gather your tax returns, asset statements, and any gift or retirement documentation now so you can react fast when the right home hits the market.
- Review comps with your agent and prepare for appraisal questions, especially if the property has unique features.
- Re-check pricing as rates and lender programs change. The spread between conforming and jumbo can move with the market.
When you are ready to explore Kentfield and nearby Marin neighborhoods, you deserve steady guidance and a local strategy. Reach out to Pat Kelly Real Estate for a calm, consultative approach to your move-up plan.
FAQs
What is the current conforming loan limit in Marin County?
- Check the latest number on the FHFA conforming loan limits page, since limits are updated annually.
How much should I plan for a jumbo down payment in Kentfield?
- Many buyers plan for 10 to 20 percent in the lower luxury band, 15 to 25 percent from about $1.5M to $3M, and 20 to 35 percent above $3M.
Do jumbo loans allow mortgage insurance with less than 20 percent down?
- Traditional mortgage insurance is generally not available. Buyers sometimes use a second mortgage or specialty portfolio options, each with pros and cons.
What reserves do jumbo lenders usually require?
- Expect 6 to 12 months of PITI for many loans, and 12 to 24 months for larger balances or more complex profiles.
How are appraisals handled for unique Kentfield homes?
- Lenders may require a second appraisal or review when comps are limited. Share your agent’s market analysis to support valuation.
Can I use gift funds or retirement accounts for my jumbo purchase?
- Many lenders allow gift funds with proper documentation. Lenders often count a portion of vested retirement balances as reserves, subject to policy.
What if I need to buy in Kentfield before I sell my current home?
- Buyers often consider a bridge loan or a HELOC, but these affect DTI and reserves. Plan early with your lender and agent to avoid surprises.
