Jumbo Loans In Beverly Hills: What Buyers Should Know

Shopping in Beverly Hills between $2 million and $10 million? If you plan to finance a large portion of the purchase, you are likely looking at a jumbo loan. That can raise questions about down payments, documentation, timelines, and how appraisals work on one-of-a-kind properties. This guide breaks down what you need to know so you can move forward with clarity and confidence. Let’s dive in.

Jumbo loan basics in Beverly Hills

A jumbo loan is any mortgage that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency. In high-cost counties like Los Angeles, the 2024 single-family conforming limit is $1,149,825. Any mortgage amount above that is considered a non-conforming jumbo loan. You can verify the latest limits on the FHFA’s conforming loan limits page.

Since most Beverly Hills single-family homes sell well above $1.15 million, many buyers will use jumbo financing. If you plan to finance 70 to 80 percent of a $2 million to $10 million purchase, expect your loan to be jumbo.

How jumbo status changes your loan

Jumbo pricing and guidelines are set by each lender and the broader market. Jumbo rates can be similar to or slightly higher than conforming rates depending on conditions and your profile. Because these loans are not guaranteed by Fannie Mae or Freddie Mac, underwriting standards vary by lender.

Expect more detailed reviews and a longer process. Jumbo underwriting is often manual, which can extend your timeline to 30 to 60 or more days from application to close. Build that into your offer strategy and rate lock conversations with your lender.

Appraisals on luxury properties

Beverly Hills properties can be unique, which makes valuation more complex. Lenders may require more detailed appraisals or even two appraisals. Appraisers often draw on a wider set of comparable sales and adjust for view, lot, recent remodels, and amenities.

If comps are limited, a conservative valuation can create a gap. Planning for that early helps you avoid last-minute surprises and supports a smoother negotiation with the seller.

Down payments and reserves

Most lenders allow up to 80 percent loan-to-value on standard jumbo purchases. That means 20 percent down is common, with larger down payments at higher price points. Here are typical ranges you will see in Beverly Hills:

• Around $2 million: 20 to 30 percent down is common. A 20 percent down payment would be $400,000.
• Around $5 million: 25 to 40 percent down is typical, depending on lender appetite.
• Around $10 million: Many lenders expect 30 to 50 percent down, often through private bank or portfolio programs.

Liquid reserves are also a key requirement. Lenders usually ask for 6 to 12 months of PITI (principal, interest, taxes, and insurance) in liquid reserves, and sometimes more for very large loans or complex income. Reserves can sit in cash, brokerage accounts, and some retirement accounts, subject to each lender’s rules.

Credit scores and debt ratios

Strong credit improves pricing and approval odds. Many lenders want scores of 700 or higher, with 740 or higher often needed for the best terms. Debt-to-income ratios around 43 percent are a common baseline, though high net worth borrowers with large reserves may receive flexibility after manual review.

Documents you will need

Jumbo lenders expect thorough documentation. Lining this up early can save time and stress.

• Employed buyers: Last two years of W-2s, two recent pay stubs, and sometimes the last two years of federal tax returns.
• Self-employed or business owners: Two years of personal returns and, if applicable, two years of business returns, K-1s, and year-to-date profit and loss statements. Lenders often scrutinize add-backs and one-time income.
• Assets: Recent bank and brokerage statements, retirement account statements if used for reserves, letters of explanation for large deposits, and gift letters with donor documentation if gift funds are involved.
• Alternatives: Some lenders offer bank-statement jumbo or non-QM options for complex income, typically at higher pricing and with different documentation.

Loan types to compare

Different products may fit different timelines and cash-flow preferences. Discuss options and risks with your lender.

• Fixed-rate jumbos with 10 to 30-year terms.
• Adjustable-rate jumbos (ARMs), sometimes with interest-only periods that can reduce initial payments but add reset risk.
• Portfolio or private bank loans with customized underwriting for high-net-worth clients.
• Non-QM and bank-statement loans for self-employed buyers with complex or seasonal income.
• Bridge loans and short-term construction or renovation financing when purchasing before a sale or planning improvements.
• Piggyback structures that combine a first mortgage with a second lien to adjust the overall LTV profile.

Taxes, insurance, and ongoing costs

Jumbo ownership involves carrying costs beyond the mortgage payment. Knowing them upfront helps you shape a realistic budget.

• Mortgage interest deduction: For mortgages originated after December 15, 2017, federal law generally caps the mortgage interest deduction at interest paid on up to $750,000 of acquisition debt for married couples filing jointly. Review details in IRS Publication 936. The state and local tax deduction is capped at $10,000.
• Property taxes: Under California’s Prop 13 system, the base rate is about 1 percent of assessed value plus local assessments. Los Angeles County also issues supplemental property tax bills after a change in ownership, which can affect cash flow shortly after closing. See the county’s overview of supplemental property tax bills.
• Insurance: High-value homeowner policies, an umbrella policy, and earthquake coverage are common line items in Beverly Hills. The California Department of Insurance provides guidance on earthquake insurance considerations.

Appraisals and negotiation strategy

When an appraisal comes in below the contract price, you have several paths. You can increase your down payment, request a price adjustment, or negotiate a seller credit. Some lenders will consider a second appraisal or reconciliation if supported by market data.

Building appraisal flexibility into your offer strategy helps you move quickly if a valuation gap appears. It also positions you as a prepared buyer during negotiations.

Timeline and closing costs

Plan for 30 to 60 or more days from application to close on a jumbo mortgage. Appraisal scheduling, manual underwriting, and entity or trust documentation can add time. Rate locks vary by lender, so ask about lock periods and extension policies before you write an offer.

Closing costs often run 1 to 3 percent of the purchase price. Expect lender fees, higher appraisal costs for luxury properties, title and escrow charges, recording fees, and any HOA document or transfer fees. In complex transactions, legal review and wire fees can also be higher.

Buyer checklist

Use this quick checklist to prepare and speed up underwriting.

Before you talk to a lender

• Confirm your target price range and desired down payment or LTV.
• Gather two years of personal tax returns, recent pay stubs if employed, two months of bank and brokerage statements, W-2s or 1099s, and ID.
• Decide on ownership structure: individual, joint, trust, or LLC. Note any gift funds or seller credits you plan to use.

Documents for a full application

• Two years of federal tax returns with all schedules; business returns if self-employed.
• Two recent pay stubs and two years of W-2s, if applicable.
• Two to twelve months of bank and brokerage statements showing down payment and reserves.
• Statements for retirement assets if used for reserves, including any liquidation rules.
• Documentation for large deposits and transfers to show source of funds.
• Gift letters and donor bank statements, if using gift funds.
• Trust or LLC formation documents, trustee ID, and any required minutes.

Questions to ask lenders

Bring these questions to your lender interviews so you can compare apples to apples. For general guidance on shopping and comparing loans, see the CFPB’s mortgage comparison resources.

• What jumbo programs fit my target loan size and LTV?
• What credit scores earn best pricing and what is the minimum you accept?
• How many months of PITI reserves do you require at my price point?
• Do you lend to trusts or LLCs and will you require a personal guarantee?
• What documentation do you need for self-employed borrowers or foreign nationals?
• What appraisal requirements apply to luxury properties at this price level?
• What is your typical underwriting timeline and rate lock period, and what are extension fees?
• Do you offer interest-only, ARMs, bridge loans, or renovation financing? What are the conditions and repayment terms?
• What lender fees, credits, or price adjustments apply to jumbos?

Smart contingency planning

A little planning can protect you if market or valuation surprises pop up.

• Include an appraisal contingency with a plan for a potential gap: larger down payment, renegotiation, or seller contribution.
• Set clear timelines and conditional deposits suited to high-value transactions.
• Coordinate early with your lender, title company, and your legal or estate counsel if you are using a trust or LLC.

Next steps

A successful jumbo purchase in Beverly Hills comes down to preparation, the right product fit, and clean execution. If you are clear on your down payment, reserves, documentation, and timeline, you can write stronger offers and close with fewer surprises.

If you are planning a purchase in the $2 million to $10 million range, let’s map your search and offer strategy to the realities of jumbo underwriting and Beverly Hills inventory. For a private, outcomes-focused consult, connect with Nick Hertz.

FAQs

How do jumbo loan limits work in Beverly Hills?

• Los Angeles County has a 2024 conforming limit of $1,149,825 for single-family homes, so any mortgage above that is a jumbo loan subject to lender-specific underwriting.

How much down payment for a $2 million home?

• Many lenders expect about 20 percent down on a $2 million purchase, though some require 25 to 30 percent based on your profile and reserves.

How many reserves for a $5 million jumbo?

• Reserve needs vary, but 6 to 12 months of PITI is common, with higher amounts possible for larger or more complex loans.

Can I buy through a trust or LLC with a mortgage?

• Many lenders allow purchases using trusts or LLCs, but they may require extra documentation and sometimes a personal guarantee from the borrower.

What documentation do self-employed buyers need?

• Expect two years of personal and business tax returns, K-1s if applicable, year-to-date profit and loss statements, and detailed asset statements.

What happens if the appraisal comes in low?

• You can increase your down payment, negotiate a price change or seller credit, or request a second appraisal or reconciliation if supported by market data.

How does the mortgage interest deduction cap affect jumbos?

• Only interest on up to $750,000 of acquisition debt is generally deductible for new loans, so interest on most jumbo balances will not be fully deductible under current rules.

How long does a jumbo loan take to close?

• Plan on 30 to 60 or more days due to deeper documentation, manual underwriting, and potential appraisal complexity on luxury homes.