CalPERS Jumbo Mortgage Income Qualifications

Jumbo CalPERS Mortgages will review your income for a few different reasons.

  • You ability to repay the mortgage
  • Amount of Loan you can afford

Following are some of the most basic guidelines for CalPERS jumbo mortgages.

  • Should have two years of work history in same field.
  • Income should be steady or increasing over two year period.

Also, the amount of your “Gross Income” will determine the amount of loan you qualify for by calculating your “Ratios”. These ratios are broken into two different categories:

  • Front End Ratio – Gross income divided by PITI mortgage payment.
  • Back End Ratio – Gross income divided by PITI mortgage payment plus minimum payment of bills.

The minimum monthly bills that are considered are the following:

  • Car Payments
  • Credit Card Payments
  • Loan Payments
  • Child Support, Alimony, Palimony Payments

The front end ratio should typically not exceed 28% of your gross income and the back end ratio should not exceed 36% of your gross income. These are only guidelines and may be exceeded dependant on overall strength of file.

(Following you will find an excel spread sheet calculator that you can download to calculate your estimate ratios. Please feel free to share this calculator, with family, friends, and work associates.