Are There Jumbo Home Loans in the Inland Empire?

There are, says Wholesale Capital Corporation (WCC) president Ed Hoffman. Jumbo loans in California – which are loans that exceed the conforming loan limit for a given county (in both Riverside and San Bernardino counties, that limit is $417,000) – are slightly less common in the Inland Empire than in other parts of Southern California. This is especially the case compared to Los Angeles and Orange counties, because property values tend to be higher in those areas. Regardless, it is possible – and sometimes, necessary – to obtain a jumbo loan in order to finance specific real estate properties here in the inland valley.

“The most common cities for jumbo loans in the Inland Empire are Temecula, Murrieta, Corona, Redlands, Rancho Cucamonga, Chino Hills and the Palm Springs area,” said Ed Hoffman, president of Wholesale Capital Corporation. Hoffman’s company, which is based in Moreno Valley but services all of Southern California, is no stranger to jumbo loans. “There are lots of homes in the Inland Empire that can be financed with jumbo loans.”

Hoffman is also aware that jumbo loans are in demand among minority home buyers. In reference to a recent Wall Street Journal article that implied jumbo loans are largely unavailable to minorities, “That is an unfair generalization,” Hoffman said. “I don’t believe there is any ‘diversity problem’ with jumbo loans, or any home loans, for that matter.”

The article in question cited data from federally reported home sales between 2007 and 2014, which showed that the top 10 U.S. banks have increased their jumbo loan volume, but only among white and Asian borrowers with what the Journal referred to as “huge” down payments. “Historically, banks require a 20% down payment for jumbo loans in California,” Hoffman said. “Here, we can approve many jumbo loans with 10% down.”

The Journal also cited data that only 3% and 1.3% African-Americans were approved for jumbo loans. In regards to that, Hoffman said, “If a borrower meets our credit and income criteria for a jumbo loan and can make a down payment of at least 10%, then there should be nothing stopping them from qualifying. We also have Spanish-speaking loan officers and staff who can help borrowers who meet this criteria and need translation assistance.”

In regards to that criteria, “Right now, our minimum credit score for jumbo loans is 680,” Hoffman said. “As always, the borrower’s documented monthly income should be two to three times the amount of the monthly mortgage payment.” While this is WCC’s rule of thumb for its own borrowers, jumbo loans in California may be harder to obtain from other sources. “A bank will not have terms this flexible,” Hoffman said. “Banks have much stricter criteria, which is why a borrower is always better off applying with a mortgage lender – and that goes for not only a jumbo loan, but any conforming loan as well.”

Inland Empire residents who believe they may qualify for jumbo loans in California can contact Wholesale Capital Corporation at (844) 571- 2777. “Tell us you’re interested in jumbo loans,” Hoffman said, “and that you’d like to speak with a loan officer. We will be glad to help.”