California’s Housing Gold Rush Driving Demand for Jumbo Loans

Wall Street Journal, Sept. 23, 2015–Martin, Anya

All of coastal California is basically insane right now, referring to real estate, of course. Yet government-backed conforming loans are capped at $625,500 in high-priced areas. So unless they can make a substantial down payment to qualify for a Fannie Mae, Freddie Mac or FHA loan, the only way many Californians can finance their mortgage will be a jumbo loan.