Shopping in Cow Hollow and wondering if you need a jumbo loan? You are not alone. With neighborhood price points often above San Francisco’s conforming loan limit, financing can feel complex. In this guide, you will learn where the jumbo threshold sits this year, how your down payment changes your loan type, what lenders look for, and how to prepare a strong offer without stretching too far. Let’s dive in.
What counts as a jumbo loan in San Francisco
San Francisco is a high-cost county. For 2024, the Federal Housing Finance Agency sets the one-unit high-cost conforming limit at $1,149,825. Any first mortgage amount above that limit is a jumbo loan and is not eligible for purchase by Fannie Mae or Freddie Mac. You can confirm the current figure on the FHFA conforming loan limits page.
In Cow Hollow, many single-family homes and a number of larger condos sit above this threshold. Smaller condos or flats can sometimes fit under it, depending on price and down payment.
Do you need a jumbo for Cow Hollow?
Use these quick examples to see how price and down payment interact with the San Francisco limit of $1,149,825:
Example A, condo near the cap
- Purchase price: $1,200,000
- 20% down ($240,000) → loan = $960,000 → still conforming
- 10% down ($120,000) → loan = $1,080,000 → still conforming
Example B, mid-tier single-family
- Purchase price: $1,500,000
- To stay conforming, down payment must be about $350,175 so the loan is at or below $1,149,825
- With 20% down ($300,000) → loan = $1,200,000 → jumbo
Example C, higher-end single-family
- Purchase price: $2,500,000
- Even with 30% down ($750,000) → loan = $1,750,000 → jumbo
If your goal is to avoid jumbo pricing, increasing your down payment to drop the loan at or below the $1,149,825 cap can make a meaningful difference in options and costs.
How jumbo underwriting works
Jumbo loans ask for stronger borrower profiles and fuller documentation than most conforming loans. Here is what to expect.
Credit and down payment
- Many lenders look for FICO scores in the low to mid 700s for competitive pricing. Some will consider scores from about 680 to 700 with pricing tradeoffs.
- 20% down is a common practical minimum for standard jumbo programs, though some allow 10% for highly qualified borrowers. Super-jumbo balances may require 25% to 30% down.
- Private mortgage insurance is less common in jumbo programs, so staying at or below 80% loan-to-value often helps pricing.
Debt-to-income and reserves
- Typical debt-to-income limits land between 43% and 50%, depending on your profile and loan size.
- Expect larger cash reserve requirements than conforming loans. Six to twelve months of principal, interest, taxes, and insurance is common, and higher for very large loans or complex scenarios.
Income docs and appraisals
- Full documentation is standard: two years of tax returns, W‑2s, recent pay stubs, bank and asset statements, and explanations for large deposits.
- Appraisals can be more intensive. In Cow Hollow, where homes can be unique and comps limited, lenders may scrutinize valuation and request more data.
Condo and HOA specifics
- Many jumbo lenders require strong condo project health: adequate reserves, no major litigation, balanced owner-occupancy, and limited commercial or short-term rental exposure.
- Buildings that do not meet these criteria may be considered non-warrantable, which can reduce lender options or require larger down payments and reserves.
Rates and costs for jumbo borrowers
Jumbo vs conforming rates
Jumbo rates can be slightly higher or sometimes similar to conforming rates, and the spread changes with market conditions. Recent commentary shows spreads often in the 0 to 0.50 percentage point range depending on borrower profile and market appetite for jumbo loans. See industry commentary on jumbo vs conforming rate spreads and check the Freddie Mac Primary Mortgage Market Survey for current average mortgage rates.
What drives your price
- Credit score and loan-to-value
- Loan size and product type, including fixed vs adjustable
- Lender or investor appetite, since jumbos are not sold to Fannie or Freddie
- Broader market yields, which influence mortgage pricing
Locking and closing costs
- Shop multiple lenders and consider relationship pricing if you bank with a private or portfolio lender.
- Rate lock timing matters in a volatile market. Locking once you are fully approved can reduce risk.
- Expect similar closing costs to conforming loans, with potentially higher appraisal and lender fees at larger balances.
Cow Hollow property nuances that affect financing
- Condos: Project eligibility and HOA health are critical. Obtain HOA docs early so your lender can review reserves, occupancy, and any litigation.
- Single-family homes: Appraisals can be sensitive to unique architecture, view premiums, and limited comparable sales. Be prepared for appraisal questions and longer review times.
- Insurance: Earthquake coverage is common in San Francisco. Lenders will include insurance costs in your debt-to-income and reserve calculations.
- Short-term rentals: Buildings with significant short-term rental activity can face tighter lender scrutiny, which may affect your options or required down payment.
Smart prep to compete without overextending
Get fully underwritten pre-approval
Ask for a fully underwritten pre-approval rather than a quick pre-qualification. It gives you more certainty and can strengthen your offer. For comparing offers, the CFPB guide to shopping for a mortgage is a helpful consumer resource.
Verify condo eligibility early
If you are targeting a condo, request HOA documents, budgets, reserves, and any litigation disclosures up front. Early review can prevent surprises during escrow.
Plan reserves and insurance
Build a plan to show 6 to 12 months of reserves and include homeowners and earthquake insurance in your monthly cost estimate. This helps with both underwriting and your own comfort level.
Stress-test your payment
Model your monthly payment at a slightly higher rate and with realistic HOA dues and insurance. This helps you avoid stretching and keeps your long-term plan intact.
Compare lender types
Consider a mix of lenders: traditional banks, credit unions, and portfolio lenders. For self-employed or complex income, non-QM or bank-statement programs may help, though pricing is usually higher. VA buyers may have options for higher loan amounts, but specifics depend on entitlement rules.
Quick buyer checklist
- Confirm San Francisco’s current conforming limit on the FHFA loan limits map.
- Obtain fully underwritten pre-approvals from at least two lenders.
- Prepare documents: two years of tax returns, recent pay stubs, and 60 to 90 days of bank and asset statements.
- Verify condo project eligibility early if shopping condos.
- Get quotes for homeowners and earthquake insurance to include in DTI planning.
- Plan for 6 to 12 months of reserves, more for very large loans or complex scenarios.
- Consider whether a larger down payment could move your loan below the conforming cap.
The bottom line
In Cow Hollow, whether you need a jumbo loan comes down to your purchase price, San Francisco’s conforming limit, and your down payment. Jumbo financing can be just as workable as conforming when you plan ahead, document well, and select the right lender. A strong pre-approval, clear condo or property diligence, and a thoughtful reserve plan will help you compete with confidence.
If you want neighborhood-specific guidance on property selection, pricing, and financing strategy, reach out to Level 5 Real Estate for a conversation tailored to your goals.
FAQs
What is the 2024 conforming loan limit in San Francisco County?
- For one-unit properties, the 2024 high-cost conforming limit is $1,149,825, according to the FHFA loan limits map.
How much down payment do I need for a jumbo loan in Cow Hollow?
- Many lenders expect around 20% down for standard jumbo programs, with 25% to 30% common at very large loan sizes; stronger profiles may qualify for lower down payments.
Do condo HOA issues affect jumbo financing in San Francisco?
- Yes. Lenders review HOA reserves, litigation, owner-occupancy, and commercial exposure; non-warrantable projects can limit loan options or require larger down payments.
How do jumbo mortgage rates compare to conforming right now?
- The spread often ranges from 0 to 0.50 percentage points and changes with market conditions; check the Freddie Mac PMMS for current averages and lender quotes for jumbo pricing.
What credit score is typically needed for a jumbo mortgage?
- Competitive jumbo pricing often starts in the low to mid 700s; some lenders consider 680 to 700 with pricing tradeoffs and higher reserve needs.
How can I avoid needing a jumbo loan in Cow Hollow?
- Increase your down payment so the loan amount is at or below $1,149,825, consider slightly lower price points, or explore different property types that fit under the limit.
