You are paying two premiums. You can usually kill one.
A Jumbo Non-QM loan stacks the jumbo premium on top of the alt-doc premium. Two separate surcharges, quietly added together, presented as one rate. Almost nobody separates them for you — and once you see them apart, one of them is usually removable.
A Jumbo Non-QM loan is two surcharges stacked into one number. The first is the jumbo premium — roughly 0.20% — charged because your loan exceeds the conforming limit and a bank must hold it rather than sell it. The second is the Non-QM premium — typically 1.5–2% — charged because you cannot document income with tax returns. Together they take you from about 6.75% to 8.60%. The crucial point, and the reason this page exists: they are separate, and you can usually remove one of them. If you can document income, take the full-doc jumbo and drop the Non-QM premium. If you can get your loan under the conforming limit, take a conforming Non-QM loan and drop the jumbo premium. Very few lenders will separate these for you, because separating them tends to end with a cheaper loan.
Two surcharges. Shown separately.
This is your rate, taken apart. Once you can see which premium is which, you can usually get rid of one.
Bay Area conforming limit is $1,209,750. Above it, the jumbo premium applies.
This is eight times larger than the jumbo premium. It is the one worth attacking.
6.75% base + 0.20% jumbo + 1.65% alt-doc.
The jumbo premium costs you $72,089. The alt-doc premium costs you $615,945. They are not the same size, and they are not equally hard to remove.
One rate. Three layers.
The teal foundation is what a conforming, full-doc borrower pays. The mustard slab is the jumbo premium. The coral slab — the big one — is what you pay for not having tax returns.
The coral slab is roughly eight times the mustard one. If you are going to fight one premium, fight that one.
Illustrative only. Jumbo and Non-QM premiums vary widely by lender, credit score, loan-to-value, occupancy, property type and loan size, and they are not always additive in practice — some lenders price the combination better or worse than the sum of its parts. The figures here separate them for clarity, which is the point. Many Non-QM loans carry prepayment penalties. Not a commitment to lend. Equal Housing Opportunity.
Kill one of them. Here’s which.
There are exactly two escape routes off this product, and each one removes a different surcharge. Both of them mean we place a cheaper loan.
If neither route is open to you, Jumbo Non-QM is the correct product and we will place it well. But check the routes first.
It costs $615,945 — against $72,089 for the jumbo premium. It is by far the bigger number and it is the one worth attacking.
Before you accept it: have someone actually calculate your qualifying income from tax returns, with the standard add-backs. We do this free, it takes about twenty minutes, and it has taken clients off Non-QM more than once — which costs us money every single time.
If it genuinely will not work, then this is the right product and we will place it well. But check first.
From here to the keys — five steps.
No mystery, no call centre, no "we'll get back to you." Every step is exactly what happens inside it.
Four questions. No credit pull, no sign-up, no obligation.
~60 secondsWhat happensOne application goes to dozens of wholesale lenders. They compete for you.
Same dayWhat happensUnderwritten against real documents — not a soft letter any lender prints.
~24 hoursWhat happensListing agents call Adriana. She picks up. That is worth more than a bid.
Your timelineWhat happensConditions cleared, docs signed, funded. And she tells you when PMI ends.
To the dateWhat happensThree high-balance borrowers. Two dropped a premium.
Real numbers, and what we actually told each of them.
Two years of clean W-2 and K-1 income. Nobody added them up. He paid 1.65% for nothing.
It killed the jumbo premium. She kept the Non-QM premium because she had to — but she killed one.
Both routes were closed. Jumbo Non-QM was the right product and we said so.
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Everything people actually ask.
What is a Jumbo Non-QM loan?
A loan that is both above your county's conforming limit (making it jumbo) and underwritten on alternative income documentation such as bank statements, a CPA-prepared P&L, or assets (making it Non-QM). It carries both surcharges, which is why it is one of the most expensive products in residential lending.
How much do the two premiums cost, separately?
On a $1,500,000 loan, the jumbo premium of roughly 0.20% costs about $54,712 in lifetime interest. The Non-QM premium of roughly 1.65% costs about $433,281. They are not remotely the same size, and almost nobody shows them to you apart.
How do I remove the Non-QM premium?
By documenting income conventionally. Have someone actually calculate qualifying income from your tax returns — with the standard add-backs for depreciation, depletion, amortisation and business use of home. If it works, take a full-documentation jumbo and drop 1.65%. This is the single most valuable thing on this page.
How do I remove the jumbo premium?
By getting your loan under your county's conforming limit — $1,209,750 in the Bay Area's high-cost counties. A larger deposit or a negotiated price reduction can do it. If you land near the line, this is very achievable and worth real money.
Can I remove both premiums?
Occasionally, yes — if you can both document income and get under the conforming limit, you are simply a conventional borrower and none of this applies. It happens more often than you would think, usually because nobody actually checked.
Are the premiums additive in practice?
Not always. Some lenders price the combination better than the sum of its parts, and some price it worse. We separate them here for clarity, because you cannot attack a premium you cannot see — but the real quote will be whatever the real quote is, and we will get you several.
What down payment will I need?
Expect 20–30% for a Jumbo Non-QM, and more for investment property or a very recent credit event. Reserves matter enormously at this loan size — six to twelve months of full payments held in liquid assets after closing is common, and it catches people out.
Should I plan to refinance out of this?
Yes, and put a date on it before you sign. Once you have two years of tax returns that support the loan conventionally, refinance and drop the Non-QM premium. Check the prepayment penalty first — they are common on Non-QM and can run three to five years.
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