Buying in Los Altos and eyeing a $2M–$5M+ home? You are likely looking at a jumbo mortgage. Between high home values and complex compensation packages, financing here can feel intricate. In this guide, you will learn how jumbo loans work in Santa Clara County, what lenders look for with stock-based income, how rates and points trade off, and the timelines to expect. Let’s dive in.

What counts as a jumbo in Los Altos

In Santa Clara County, the Federal Housing Finance Agency sets a higher conforming loan limit because it is a high-cost county. Any mortgage above that high-cost conforming limit is considered a jumbo loan. Limits change each year, so plan to verify the current FHFA number when you shop.

Because Los Altos prices often exceed $2M, many buyers either use jumbo financing or bring a large down payment to keep the loan at or below the conforming threshold. Property taxes are based on assessed value, and the effective rate, including assessments, typically runs about 1.1% to 1.3%. On a $3,000,000 assessment, that pencils to roughly $33,000 to $39,000 per year.

Jumbo vs. conforming: key differences

• Counterparty and investor: Conforming loans are sold to Fannie Mae or Freddie Mac. Jumbo loans are funded by banks or private investors with their own rules.
• Underwriting: Jumbo lenders are often more conservative on debt-to-income, credit scores, and documentation, yet can be more flexible with tech compensation if they know RSUs and options.
• Pricing: Rates and fees are set by private lenders. Depending on the market and your profile, jumbo rates can be comparable to conforming or modestly higher.
• Programs: Government-backed programs are limited at jumbo sizes. Fixed and ARM options exist, and niche products are more lender-specific.

How lenders view tech income and assets

Income and employment history

Lenders prefer two years of consistent income for W-2 or commission roles. If you receive regular RSU vests shown on pay stubs and tax forms, many lenders treat that as durable income when documented. Self-employed buyers should expect to provide two years of tax returns and business documentation.

RSUs, options, and concentrated stock

Vested RSUs and restricted stock that appear on brokerage statements often count as qualifying income or reserves when documented with statements, grant documents, and employer verification. Unvested options typically do not count as income. If your portfolio is heavily concentrated in a single stock, expect the lender to ask for a liquidation plan, additional reserves, or other safeguards to address concentration risk.

Reserves and acceptable assets

Jumbo loans usually require more reserves. Plan for about 6 to 24 months of principal, interest, taxes, and insurance left over after closing. Higher loan amounts, higher loan-to-value ratios, or complex income can push requirements toward the upper end. Cash, liquid brokerage funds, and certain retirement account balances are commonly acceptable, subject to seasoning and documentation.

Credit score, DTI, and down payment

Top-tier pricing usually goes to borrowers with credit scores in the high 700s or above. Many lenders prefer lower debt-to-income ratios and may cap DTI around 45% to 50% for the strongest files. A 20% down payment is common for straightforward jumbo approvals. Some 10% down options exist for primary residences, but they typically require stronger credit, more reserves, and higher pricing.

Rates, points, and pricing choices

What drives your rate

Your loan amount and loan-to-value, credit score, documentation complexity, loan structure, and lock duration all influence pricing. Adjustable-rate mortgages sometimes start lower than fixed rates. Longer rate locks cost more, so timing matters in a competitive offer cycle.

Points vs. rate: how to decide

One discount point equals 1% of your loan amount. On a $3,000,000 purchase with 20% down, the loan would be $2,400,000. Paying 1 point would cost $24,000. If the point lowers your rate by about 0.25%, calculate the monthly savings and divide the upfront cost by that savings to find your breakeven in months. If you plan to stay 5 to 10 years, paying points can make sense. If you might relocate or refinance in 2 to 3 years, you may prefer fewer points and a slightly higher rate.

Fixed vs. ARM and lock strategy

In some markets, ARMs offer lower initial rates that can be appealing if your time horizon is shorter. In Los Altos, many buyers wait to lock until the contract is executed to avoid paying for a lock that might expire or go unused. That choice adds rate risk if markets move, so discuss lock policies, float-down options, and extensions with your lender.

Timeline: what to expect in Los Altos

• Pre-approval: 1 to 7 days, sometimes same-day with digital lenders.
• Contract to close: 30 to 45 days is typical, but jumbo timelines can extend to 45 to 60 days depending on appraisal timing and documentation.
• Appraisal: About 7 to 14 days, longer for custom or high-value homes.
• Underwriting review: 7 to 21 days once the appraisal and full documentation are in.
• Closing: Often scheduled 3 to 7 days after clear-to-close.

Stock compensation verification and large asset reviews are common slow points. Be ready with employer letters, RSU grant and vesting schedules, and 60 to 90 days of brokerage statements to keep the file moving.

When to bring in vetted jumbo lenders

Engage lenders early, ideally before you start touring homes. If your budget is $2M+, jumbo-specific questions about reserves, RSU treatment, and down payment options should be addressed up front. Before submitting an offer, have a current pre-approval that specifies jumbo financing and any conditions.

Ask for lenders who have closed multiple Silicon Valley jumbo loans recently. Request example timelines, a documentation checklist for equity compensation, and sample pricing for your expected loan amount and LTV. Comparing two or three vetted lenders can improve your pricing and reduce surprises.

Quick prep checklist for jumbo buyers

• Gather 2 years of W-2s and, if applicable, tax returns for self-employment.
• Compile 60 to 90 days of bank and brokerage statements.
• Organize RSU grant documents, vesting schedules, and recent sale history.
• Confirm down payment sources, including any gift funds, and seasoning.
• Ask lenders about LTV options, reserve requirements, and rate-lock policies.
• Obtain a jumbo pre-approval letter before making offers.

The bottom line for Los Altos buyers

Jumbo financing is common in Los Altos, and it rewards early planning. If you prepare documentation for RSUs and assets, confirm reserve needs, and map your points-versus-rate strategy ahead of time, you can write stronger offers and move through underwriting with fewer delays. When you are ready, connect with a local expert who can introduce proven jumbo lenders and help you align your financing with your home search.

If you want tailored lender introductions and a clear plan for buying in Los Altos, reach out to Shannon Ray. You will get local guidance, a clear next-step roadmap, and support through closing.

FAQs

What is a jumbo loan in Santa Clara County?

• A jumbo loan is any mortgage above the FHFA high-cost conforming limit for the year. Verify the current limit before you shop since it changes annually.

How are RSUs treated in jumbo underwriting?

• Vested RSUs shown on brokerage statements and tax forms often count as income or reserves. Unvested options usually do not count for qualifying.

How much down payment do I need for a jumbo in Los Altos?

• Many programs expect about 20% down. Some lenders offer 10% down options for primary residences with stronger credit, more reserves, and tighter pricing.

How long does a jumbo purchase take to close in Silicon Valley?

• Plan for roughly 30 to 60 days from contract to close, depending on appraisal timing and the complexity of your documentation.

Are jumbo rates higher than conforming rates?

• It depends on market conditions and your profile. Strong, well-documented borrowers in Silicon Valley sometimes see comparable pricing, while complex files may price higher.

What will my Los Altos property taxes look like?

• A common effective range is about 1.1% to 1.3% of assessed value, including assessments. On $3,000,000, that is about $33,000 to $39,000 per year.