If you’re looking to buy a high-priced home in Stockton or throughout California, you might find yourself needing a jumbo loan. Jumbo loans are mortgage loans that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
In San Joaquin County, the conforming loan limit for a one-unit property in 2025 is $806,500. Any loan amount above this is considered a jumbo loan.
The good news? Buyers in Stockton don’t necessarily need to come up with a massive down payment like in years past. Select lenders and banks now offer jumbo mortgage options with as little as 5% or 10% down.
In this post, we’ll walk you through how jumbo loans work, current conforming limits, low down payment jumbo programs, and even touch on VA jumbo options for eligible veterans.
What Is a Jumbo Loan?
A jumbo loan is a type of mortgage that exceeds the limits set by the FHFA for conventional loans purchased by Fannie Mae and Freddie Mac. Because these loans are not backed by government-sponsored entities, they carry slightly different requirements than conforming loans.
Before we dive into jumbo options, let’s first break down the conforming loan limits by property type:
📊 Conforming Loan Limits by Property Type in San Joaquin County
- 1-unit property: $806,500.
- 2-unit property: $1,032,650.
- 3-unit property: $1,248,150.
- 4-unit property: $1,551,250.
Any loan amount above these limits is considered a jumbo loan.
Why Jumbo Loans Matter
Stockton’s housing market is growing, and while it’s more affordable than the Bay Area, higher-priced homes are becoming more common. If you’re buying a larger home, investing in multi-unit property, or looking in desirable neighborhoods like Brookside, Lincoln Village West, or Spanos Park, you may need a jumbo loan.
Low Down Payment Jumbo Loans in Stockton
Historically, jumbo loans required large down payments—often 20% or more. But today’s loan programs have evolved to meet the needs of buyers who qualify for higher loan amounts but may not want to tie up all their cash.
✅ 5% Down Jumbo Loans – Up to $2 Million
Buyers can qualify for jumbo mortgages up to $2 million with only 5% down, depending on their credit, income, and property type.
Basic Guidelines:
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Loan Amounts: Up to $2,000,000
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Down Payment: 5%
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Minimum Credit Score: 700+
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Property Types: Primary residence, 1-unit homes
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No Private Mortgage Insurance (PMI): when using a piggyback loan
✅ 10% Down Jumbo Loans – Up to $3 Million
If you’re looking at even higher-end homes in Stockton or the Central Valley, you can go up to $3 million with just 10% down.
Program Highlights:
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Loan Amounts: Up to $3,000,000
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Down Payment: 10%
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Minimum Credit Score: Typically 720+
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Primary & Vacation Homes
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PMI: Not required with piggyback loans
- Rate-Term and Cash-Out Refinance options available
What Are the Benefits of a Low Down Payment Jumbo Loan?
There are several strategic reasons homebuyers may choose a low down payment jumbo loan:
🔑 Preserve Cash Flow
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Keep more cash for renovations, investments, or emergencies.
🔑 Enter the Market Sooner
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Rising home prices mean waiting to save a bigger down payment could price you out.
🔑 Leverage Appreciation
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Use a smaller amount of your capital to control a higher-value asset.
🔑 Take Advantage of Lower Rates
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Even jumbo loans often come with competitive fixed or ARM options.
🔑 Relocation
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Maybe you have significant equity built up in your current home, but it won’t be available until that home sells.
Piggyback Jumbo Loans: Avoid PMI
One strategy to avoid PMI (Private Mortgage Insurance) with a low down payment is to use a piggyback loan. This involves combining a first mortgage and a second mortgage or HELOC to keep your first loan under the conforming limit or 80% of the home’s value.
📌 Example of a Piggyback Jumbo Loan:
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Home Price: $1,000,000
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1st Mortgage: $800,000 (80%)
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2nd Mortgage (HELOC): $100,000 (10%)
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Down Payment: $100,000 (10%)
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PMI: Not required
This structure allows borrowers to access jumbo-level financing with low down payments and no PMI.
VA Jumbo Loans in Stockton
For veteran homebuyers, VA loans offer one of the best jumbo loan options available—even with zero down. The VA no longer sets a loan limit for borrowers with full entitlement, meaning veterans can purchase homes above $806,500 with no down payment. *Note, individual lenders may have their own internal guidelines with set loan limits
✅ VA Jumbo Loan Highlights:
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Loan Amounts: Up to $2-4 million possible with full entitlement
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Down Payment: $0 down in many cases up to $2m
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Credit Score: Typically 640+
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No PMI: VA loans never have monthly mortgage insurance
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Eligible Borrowers: Active-duty military, veterans, eligible surviving spouses
Jumbo Loan Requirements in Stockton
To qualify for a jumbo loan, borrowers need to meet stricter requirements than for conforming loans. These include:
📋 Typical Jumbo Loan Criteria:
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Credit Score: 660–700 minimum (depending on down payment)
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Debt-to-Income Ratio (DTI): Usually capped at 48%
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Income: Verifiable W2, 1099, or self-employed income with tax returns
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Reserves: Often 3–12 months of mortgage payments in savings or non-liquid accounts like 401K, IRA, etc.
Pro Tip: Lenders may have more flexibility for borrowers with strong compensating factors like high income or excellent credit.
Who Should Consider a Jumbo Loan?
Jumbo loans are ideal for buyers who:
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Are purchasing homes above the conventional loan limit
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Want to minimize their down payment but still access a high-end property
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Are veterans taking advantage of VA jumbo benefits
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Are investing in multi-unit properties above the conforming limit
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Have strong credit and income to qualify for flexible programs
Gone are the days when you needed 20% down to secure a jumbo loan. Whether you’re a first-time buyer, a move-up homeowner, or veteran, Stockton’s jumbo loan market has flexible options with low down payments.
Work with a knowledgeable mortgage company that understands jumbo underwriting and can guide you through available products. Ready to get started? Please connect with us 7 days a week by calling, or just submit the Quick Contact Form below to learn more.
