I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I offer 3-1 buydowns on jumbo loans — a structure most lenders won’t even attempt. Call (800) 239-1103.
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. At California’s luxury loan amounts, the savings are substantial.
Why Jumbo Buydowns Are Rare
Standard buydowns work within conforming Fannie Mae/Freddie Mac guidelines. Jumbo loans — those above Marin County’s 2026 conforming limit of $1,249,125 — 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 rather than a theoretical one.
3-1 Buydown Savings on California Luxury Homes
On a $1,500,000 purchase with $1,200,000 loan at 7.25% note rate: Year 1 savings are approximately $2,800/month; total 3-year savings approximately $57,000. On a $2,000,000 purchase with $1,600,000 loan: Year 1 savings approximately $3,750/month; 3-year total approximately $76,000. On a $3,000,000 purchase with $2,400,000 loan at 7.375%: Year 1 savings approximately $5,700/month; 3-year total approximately $115,000. At these loan amounts, a 3-1 buydown doesn’t just reduce your payment — it can fundamentally change whether a high-priced home is financially manageable 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 stated sales price for comparable sales purposes, which a price reduction does not allow. Builders of new luxury developments in the Bay Area, Marin County, Napa, and Southern California frequently offer 3-1 buydowns as standard incentives. I help buyers frame concession requests in their offers to maximize the chance sellers accept.
Combine a Jumbo Buydown with a Bank Statement Loan
If you’re self-employed and buying a luxury California home, DiVita Home Finance can combine a bank statement loan — qualifying you on 12–24 months of deposits instead of tax returns — with a 3-1 buydown. Most lenders won’t offer either jumbo buydowns or bank statement buydowns. I offer both, and I can structure them together for California’s self-employed luxury buyers who need flexible income documentation and immediate payment relief.
Frequently Asked Questions — Jumbo Loan Buydown California
What is the maximum loan amount for a jumbo buydown in California?
DiVita Home Finance has structured jumbo buydowns on loans up to $3M+. The specific maximum depends on the lender program and property type. Most jumbo buydown programs are available on primary residences and some second homes — investment properties are typically excluded. Call me to discuss your specific purchase price and I’ll identify which program fits.
How does a jumbo buydown differ from a conforming buydown?
The mechanics are the same — funds deposited at closing reduce your rate in years 1–3 — but the lender approval process is different. Conforming buydowns follow Fannie/Freddie guidelines and are widely available. Jumbo buydowns require a portfolio lender that permits the structure in their loan agreement. Not all jumbo lenders allow this, which is why having access to 40+ wholesale lenders matters. I know which jumbo lenders permit buydowns and can match your loan size to the right program.
Can a seller contribute to a jumbo buydown in California?
Yes. Seller concessions toward a buydown escrow are allowed on jumbo loans, subject to the lender’s guidelines on maximum concession amounts (typically 3–6% of the purchase price depending on LTV). On a $2M California luxury home, a 3% seller concession of $60,000 can fully fund a 3-1 buydown — saving the buyer over $3,750/month in Year 1 at no cost, while the seller maintains their asking price on record.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
