Wondering if your South San Francisco home search will require a jumbo loan? You are not alone. With prices often brushing past local loan limits, it can be tricky to know where you stand and how to put a strong offer together. In this guide, you will learn what counts as a jumbo in San Mateo County, how these loans work, what lenders expect, and smart strategies to keep your financing smooth. Let’s dive in.
What counts as a jumbo in SSF
In 2025 the Federal Housing Finance Agency set the baseline conforming limit at $806,500 and the high-cost ceiling at $1,209,750. San Mateo County uses the high-cost ceiling, so any loan amount above $1,209,750 is typically considered jumbo for a one-unit home. You can confirm the national limits in the FHFA announcement for 2025 and how lenders apply them locally. Review the FHFA 2025 limits and the FHA confirmation of the same county ceiling for high-cost areas. See HUD’s 2025 loan-limit release.
Quick SSF price context
Many South San Francisco listings sit near or above the conforming ceiling. In 2025, market snapshots showed typical SSF values ranging roughly from the low $1 millions to the mid $1.2 millions depending on month and property type. The takeaway is simple: you may be deciding between a conforming high-balance loan and a jumbo, based on how much you put down.
Jumbo vs. conforming: what changes for you
Jumbo loans do not follow Fannie Mae or Freddie Mac rules, so underwriting is often manual and more conservative. Lenders may take longer, ask for more documentation, and look closely at your overall financial profile. For a plain-English overview, see this jumbo basics guide. What is a jumbo mortgage.
Credit score, DTI and reserves
- Credit scores: Many lenders look for mid 700s for best pricing. Some will go lower, but options and pricing vary. Jumbo requirements overview.
- Debt-to-income (DTI): Targets often cap near 43 percent, with tighter caps for the best terms. DTI and jumbo basics.
- Cash reserves: Expect to show several months of reserves. Very large loans can require even more.
Down payment and documentation
- Down payment: Many jumbo programs start at 10 to 20 percent down. Lower down options exist for very strong borrowers, but they come with stricter requirements and pricing.
- Documentation: Plan on full income, asset and down payment sourcing. Manual reviews are common. How jumbo underwriting differs.
Interest rates and pricing
Jumbo rates used to run higher than conforming across the board. In recent years the gap has narrowed, and some portfolio jumbo or ARM programs can price competitively. Always compare multiple written quotes, including APR and fees, since pricing varies by lender appetite and your profile.
Appraisals and timelines
High-value loans often require a full appraisal, and very large loans can trigger two appraisals. Appraisal turn times and fees can be higher in the Bay Area. Build a little extra time into your offer to avoid avoidable stress. Learn how jumbo appraisal rules can differ.
Do you need a jumbo? Quick math
Use the county ceiling as your cut line. If your loan amount exceeds $1,209,750 in 2025 for a one-unit home, you are in jumbo territory.
- Example 1: Buy at $1.35M with $200K down equals a $1.15M loan. That stays under the limit, so it can be conforming high-balance.
- Example 2: Buy at $1.4M with 10 percent down equals a $1.26M loan. That exceeds the limit, so it is jumbo. Confirm the 2025 ceiling.
Ways to stay under the conforming limit
- Increase your down payment so your loan amount falls at or below the county cap. Check current loan-limit guidance.
- Consider a piggyback structure, such as 80-10-10. This uses a conforming first loan plus a second mortgage or HELOC, which can help you avoid jumbo pricing. How piggyback loans work.
- Negotiate credits or price to help your numbers pencil. Or adjust property targets slightly if that keeps you in conforming territory.
Alternatives to a jumbo
- FHA: In San Mateo County, the FHA ceiling matches $1,209,750 for 2025. FHA has different mortgage insurance rules and may help if you need flexible underwriting at or below the ceiling. Read HUD’s 2025 announcement.
- VA: Qualified veterans with full entitlement may access very high loan amounts. Lender policies vary on practical caps and down payment needs for very large VA loans, so talk to a VA-approved lender early. About VA jumbo options.
Costs and local taxes to expect in SSF
Bigger loans usually mean bigger dollar fees. Appraisal, title and origination costs scale with price and complexity. Plan for a higher cash-to-close number and ask your lender for a detailed Loan Estimate.
For transfers in South San Francisco, San Mateo County charges a documentary transfer tax of $0.55 per $500 of value. Some nearby cities add a city transfer tax, but South San Francisco does not publish a separate city tax as of 2025. Always confirm at escrow, since local rules can change. See the county’s transfer tax page.
How to prepare and win in SSF
- Get a true preapproval from a lender that regularly closes jumbo loans, not a quick prequalification. Why jumbo process differs.
- Build a complete document file: two years of tax returns, recent pay stubs, two months of asset statements, and clear sourcing for any gifts.
- Allow extra time for appraisals and underwriting in your offer. If possible, avoid ultra-tight closings. What to expect with jumbo appraisals.
- Ask lenders about portfolio or relationship pricing that could improve terms if you hold deposits or assets with the bank.
Quick pre-offer checklist
- Verify the 2025 San Mateo County limit of $1,209,750. FHFA 2025 limits
- Secure a written preapproval from a jumbo-capable lender.
- Organize income and asset documentation and confirm gift rules if applicable.
- Budget for higher appraisal fees and give yourself appropriate contingency timelines.
Ready to map a financing plan around your South San Francisco goals? If you want a steady local partner who can help you structure a winning offer, connect with Debbie Lamica for calm, practical guidance.
FAQs
What is the 2025 conforming loan limit in San Mateo County?
- For a one-unit property, the limit is $1,209,750. Loans above that amount are typically jumbo. FHFA 2025 limits
How do jumbo loans in South San Francisco differ from conforming loans?
- Jumbo loans use non-conforming guidelines with more manual underwriting, tighter DTI and reserve expectations, and sometimes longer timelines. Jumbo basics
What down payment do lenders usually want for jumbo loans?
- Many programs start at 10 to 20 percent down, with stricter requirements for lower down options. Jumbo requirements overview
Can I avoid a jumbo by using a piggyback loan in SSF?
- Yes. A conforming first plus a second mortgage or HELOC can keep the first loan under the limit, but compare total costs and risks. Piggyback explainer
What local taxes should I expect when buying in South San Francisco?
- San Mateo County collects a documentary transfer tax of $0.55 per $500 of value. Confirm any city-level rules with your escrow team. County tax details
