Buying in Cupertino often means dealing with loan amounts that sit above standard limits. If you are exploring homes here, you will likely hear the term “jumbo loan” early and often. It can feel complex at first, especially if you have equity compensation or a fast-moving timeline.
This guide breaks down how jumbo mortgages work in Cupertino, what lenders look for, and how to prepare a clean, competitive file. You will get a practical checklist, local context, and options if you are near the threshold. Let’s dive in.
Jumbo basics in Cupertino
A jumbo mortgage is a home loan that exceeds the maximum amount eligible for purchase by Fannie Mae or Freddie Mac. Those size caps are set each year by the Federal Housing Finance Agency. You can see this year’s details in the FHFA’s conforming loan limit announcement.
In high-cost areas like Santa Clara County, prices often push loan amounts above those limits, so jumbo loans are common. That is why you will find many Cupertino buyers using a jumbo instead of a standard conforming loan.
How jumbo underwriting differs
Jumbo loans are privately underwritten and usually more conservative than conforming loans. Here is what lenders commonly expect.
Credit and payment history
Most lenders look for strong credit, with top pricing often going to scores in the 740–760 range or higher. Clean payment history matters, and past issues like bankruptcy or foreclosure usually require longer seasoning before approval. For a plain-English overview, review the CFPB’s guide to mortgage types and jumbo basics.
Down payment and loan-to-value
Many mainstream jumbo programs allow up to 80 percent loan-to-value on a primary residence, which means you bring at least 20 percent down. Higher LTV options may exist with stronger credit and larger reserves, but terms vary by lender. For second homes or investment properties, expect larger down payments.
Debt-to-income and income documentation
DTI limits often fall in the 43 to 50 percent range depending on profile strength. If you have stock-based compensation, lenders may ask for two years of tax returns, year-to-date pay stubs, vesting schedules, and proof of realized stock sales if using that income to qualify. Some lenders treat RSUs as assets rather than recurring income.
Cash reserves and assets
Jumbo loans frequently require several months of reserves after closing. Six months is common for primary residences, and 12 months or more may be required for higher-risk scenarios. Lenders will verify liquid assets with recent statements and may ask for explanations on large or irregular deposits.
Appraisals in high-price neighborhoods
In Cupertino, unique homes and limited nearby comps can make valuation more involved. Lenders often order a full appraisal and may require additional comps or even a second appraisal at higher LTVs. If the appraisal comes in low, you may need to add to your down payment or negotiate with the seller.
Rates and product choices
Jumbo rates are not always higher than conforming. Market demand and investor appetite can make jumbo pricing comparable at times. You can track general rate trends using the Freddie Mac Primary Mortgage Market Survey, then compare offers from multiple lenders.
Common products include:
- Fixed-rate jumbos with predictable payments.
- Adjustable-rate mortgages (5/6, 7/6, 10/6) with lower initial rates but future reset risk.
- Portfolio or non-QM loans for complex income files, often at higher rates.
Local factors that affect your loan
Why jumbos are the norm
Cupertino sits within a high-cost corridor of Silicon Valley. Home values here often exceed the federal conforming ceiling, which is why a large share of buyers rely on jumbo financing. For current county-level trends, review the California Association of Realtors market data for Santa Clara County.
Property taxes, insurance, and assessments
Lenders include estimated property taxes and insurance in your monthly housing cost when they calculate qualification ratios. In Santa Clara County, it is smart to confirm the current assessment rules, exemptions, and how supplemental taxes may apply after purchase. Start with the Santa Clara County Assessor’s Office for property tax basics and assessments. If your property is in a community with special assessments or HOA dues, those amounts will also factor into your qualifying payment. You can also review local services and governance at the City of Cupertino.
Competition and timing
In competitive segments, sellers favor clean files and buyers who can move quickly. A fully documented preapproval and clear proof of reserves can help your offer stand out. Because appraisal scheduling on high-value homes can take longer, build a realistic timeline into your offer.
Choosing the right jumbo product
Match the loan to your expected time horizon in the home and your risk comfort.
- If you plan to hold long term, a fixed-rate jumbo delivers payment stability.
- If you expect a move or refinance in 5 to 10 years, an ARM may reduce your initial monthly cost.
- If your income is complex, a portfolio or non-QM option could fit, though you may see stricter terms or higher rates.
Compare lenders, products, and closing costs. Because jumbo programs vary, it often pays to price out options with multiple lenders.
Alternatives if you are near the limit
If your target loan amount sits just over the conforming cap, consider:
- A larger down payment to reduce the jumbo size and improve pricing.
- A piggyback structure, such as 80/10/10, where a second mortgage or HELOC covers part of the gap. Compare second-lien rates and terms carefully.
- Bridge financing or a cash-out HELOC on your current home if your purchase depends on sale proceeds.
- Seller credits for closing costs in select negotiations, which can free up cash for your down payment.
Preapproval checklist for Cupertino buyers
Gather these items early so you can move quickly when the right home hits the market:
- Government-issued photo ID
- Last two years of federal tax returns and all schedules
- Last two months of pay stubs and year-to-date income
- 12–24 months of bank and brokerage statements, with explanations for large deposits
- Documentation for stock compensation: grant agreements, vesting schedules, 1099s, and evidence of realized sales if used to qualify
- Proof of additional assets: retirement accounts and other real estate statements
- List of monthly liabilities: auto loans, student loans, alimony or child support
- If self-employed: year-to-date profit and loss, business statements, and CPA letter if requested
Aim for a fully documented preapproval rather than a quick prequalification. A strong preapproval helps your offer carry weight with sellers.
Timeline and what to expect
- Preapproval: 2 to 7 days once documents are in and credit is checked.
- Contract to close: 30 to 45 days is common for jumbo loans, depending on appraisal timing and underwriting.
- Appraisal: scheduling can take longer on high-value or unique properties, so pad your contract timeline accordingly.
Many lenders will also require post-closing reserves. Plan on 6 months for a primary residence, with more for higher-risk scenarios.
Pro tips for a smoother path
- Get your down payment and reserve funds seasoned and documented before you start touring.
- If you receive RSUs or bonus income, talk with your lender early about how they will document and count it.
- Coordinate with your agent on appraisal strategy so the appraiser has access and context for quality comps.
- Compare at least two jumbo lenders. Pricing and guidelines vary more than with conforming loans.
Final thoughts and next steps
Jumbo financing is normal in Cupertino. With a complete file, clear reserves, and a lender who understands Silicon Valley compensation, you can compete with confidence. Keep an eye on yearly conforming limits via the FHFA announcement and track general rate trends through the Freddie Mac PMMS, then compare offers.
Information changes quickly. As of November 2025, mortgage programs, underwriting rules, and interest rates are subject to change. For personalized guidance, speak with a licensed mortgage lender and a local real estate professional.
If you want local insight on neighborhoods, pricing, and how to structure a compelling offer, connect with our team. Unknown Company can help you plan your purchase and align the right financing with the right home. Schedule a free home valuation & consultation.
FAQs
What is a jumbo loan in Cupertino?
- A jumbo is any mortgage that exceeds the conforming loan limit set by the FHFA, which makes it ineligible for Fannie Mae or Freddie Mac purchase.
How much down payment do I need for a jumbo in Cupertino?
- Many lenders target at least 20 percent down for a primary residence, with higher down payments or reserves required for second homes and investments.
Are jumbo mortgage rates always higher than conforming?
- Not always; depending on market conditions and borrower profile, jumbo rates can be comparable or even slightly lower at times.
Can I use RSUs or stock options to qualify for a jumbo?
- Possibly; lenders often require a two-year history of realized stock income or may count vested shares as assets rather than recurring income.
Will the appraisal be a problem on a high-priced Cupertino home?
- It can be more complex due to limited comps, so plan for a thorough appraisal and be prepared to cover a potential gap if value comes in below contract.
How long does a jumbo loan take to close in Santa Clara County?
- Typical timelines run about 30 to 45 days after contract acceptance, assuming documents are complete and appraisal scheduling stays on track.
