Mortgage options tailored for software engineers and tech professionals in California.

Are you a software engineer in California buying or refinancing a home? You deserve the best mortgage terms. Work with a well-reviewed, competitively priced mortgage broker.

Community First Mortgage has served clients for over 40 years. We offer excellent online reviews and fantastic rates! Our team prides itself on clear communication and delivering on our offers. We never use bait-and-switch tactics or high-pressure sales calls. We provide honest, helpful information.

Common scenarios we run into with our software engineer clients:

• Using RSU income to qualify.
• Using bonus income to qualify.
• Shopping between high-balance conforming and jumbo loans to find the best rates for our high-earning clients.
• Weighing the benefits of smaller or larger down payments.
• Ability to close quickly on jumbo loans to make the offer more attractive in highly competitive markets.

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Can I use my RSU income toward qualifying for a jumbo loan?

Yes, here are the general guidelines for using RSU income:

• For distributed shares, lenders calculate the 200-day moving average of the stock price. Next, they multiply it by the vested shares distributed over the past 24 months. Finally, they divide this total by 24 months. This determines your qualifying monthly RSU income.
• For cash equivalents, lenders take the total pretax cash distributed in the last 12 months. Then, they divide by 12 months to calculate your monthly RSU income.

Can I use my bonus income toward qualifying for a jumbo loan?

Yes! You can use bonus income if you received it over the last two (2) years. Your documentation must also indicate that the bonus income will continue.

The lender will average your bonus income. If your bonus shows a continual decline, you must provide a letter of explanation. The lender will then use the lowest annual bonus income from the past two years.

Should I obtain a jumbo or high-balance conforming loan for my purchase?

When determining if a high-balance or jumbo loan will be the best fit for you, you will need to weigh the following factors:

Loan Amount Limits

First, check if your loan amount exceeds the high-balance conforming limit in your target county. View California conforming loan limits here.

Does your loan exceed the high-balance limit? You will need a jumbo loan unless you consider a 1st/2nd combination loan.

Is your loan amount between the low-balance and high-balance limits? You can choose either a jumbo or high-balance conforming loan.

Down Payment Amount

High-balance conforming loans allow down payments as low as 5%. Jumbo loans typically require at least 10% down. Lenders often require 20% down for the most competitive rates and terms.

Pricing and Cost Factors

Jumbo loans often offer better interest rates than high-balance conforming loans. Lender fees remain comparable. However, loan amounts over $2 million may require a second appraisal fee, slightly increasing costs.

FICO Scores

Jumbo loans are usually a more attractive option when your credit score exceeds 700.

Debt-to-Income Ratio

Some of our lenders permit debt-to-income (DTI) ratios up to 50%. However, certain jumbo programs require a DTI under 43%. DTI ratios under 30% may also unlock pricing incentives.

Reserve Funds

Jumbo loans frequently require reserve funds. High-balance conforming loans rarely require reserves, especially if you do not own investment properties.

Weighing Down Payment Amounts

Can you put 20% down? A jumbo loan will likely offer the best rate and cost structure. Do you have less than 10% down? A high-balance loan may suit you best if your loan stays within county limits. Remember that jumbo loans do not require private mortgage insurance (PMI), while high-balance loans do.

Closing Quickly with a Jumbo Loan

We can close a jumbo purchase loan in as little as 10 days. Jumbo loans no longer take 30 to 45 days to close. Make your offer stand out in competitive markets with a 10-day turn time through Community First Mortgage.

We are the top-rated mortgage broker on Yelp in Ventura County!  We would love to help you obtain a preapproval letter and home loan. Click the links below to apply or request a rate quote.