Most California luxury buyers accept today’s jumbo mortgage rates as a given. But there’s a powerful strategy few lenders offer: a 3-1 buydown on a jumbo loan — reducing your rate by 3% in Year 1, 2% in Year 2, and 1% in Year 3.
DiVita Home Finance is one of the few California mortgage brokers that can structure a buydown on jumbo loans. The savings at higher loan amounts are substantial.
Why Jumbo Buydowns Are Rare
Standard buydowns work with conforming Fannie/Freddie guidelines. Jumbo loans — typically anything above $1,089,300 in most California counties — are portfolio products held by banks and private investors. Many jumbo lenders simply don’t allow temporary buydown structures in their loan agreements.
DiVita Home Finance has wholesale relationships with jumbo lenders that do permit buydowns, making this a real option for California luxury buyers.
3-1 Buydown Savings on California Luxury Homes
| Home Price | Loan Amount | Note Rate | Year 1 Savings/Mo | 3-Year Total Savings |
|---|---|---|---|---|
| $1,500,000 | $1,200,000 | 7.25% | ~$2,800/mo | ~$57,000 |
| $2,000,000 | $1,600,000 | 7.25% | ~$3,750/mo | ~$76,000 |
| $3,000,000 | $2,400,000 | 7.375% | ~$5,700/mo | ~$115,000 |
At these loan amounts, a 3-1 buydown doesn’t just reduce your payment — it can fundamentally change whether a home is affordable during the first three years of ownership.
Who Funds the Buydown on a Luxury Home?
In California’s current market, motivated sellers on high-priced homes are often willing to contribute to a rate buydown rather than reduce the list price. A seller concession of $57,000–$115,000 is not uncommon in a negotiated luxury transaction, and the seller gets to maintain the sales price for comp purposes.
Builders of new luxury developments in the Bay Area, Marin County, Napa, and Southern California frequently offer buydowns as standard incentives.
Jumbo Buydown Markets We Serve
DiVita Home Finance structures jumbo buydowns for luxury buyers throughout California, including:
- Marin County — Tiburon, Belvedere, Mill Valley, Ross, San Rafael
- San Francisco — Pacific Heights, Nob Hill, Sea Cliff, Presidio Heights
- Napa Valley — St. Helena, Yountville, Calistoga, Oakville
- East Bay — Piedmont, Orinda, Lafayette, Danville
- Los Angeles — Bel Air, Brentwood, Pacific Palisades, Manhattan Beach
- Palm Springs / Coachella Valley — Indian Wells, Rancho Mirage, La Quinta
Combine a Jumbo Buydown with a Bank Statement Loan
If you’re self-employed and buying a luxury California home, DiVita can combine a bank statement loan with a 3-1 buydown — qualifying you on 12–24 months of deposits instead of tax returns, while still delivering the rate relief of a buydown structure. Most lenders won’t offer either jumbo buydowns or bank statement buydowns. We offer both.
📞 Call DiVita Home Finance at (800) 239-1103 to structure a jumbo buydown for your California luxury purchase.
Learn more about buydown mortgages at DiVita Home Finance →
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
