Jumbo Loans

Jumbo Loans-Financing for High-Value Homes Beyond Conventional Limits

A Jumbo Loan is a mortgage designed for homebuyers who need to borrow more than the conventional loan limits set by the Federal Housing Finance Agency (FHFA). These loans allow borrowers to finance luxury homes, high-value properties, and homes in competitive real estate markets where prices exceed standard loan limits.

Key Benefits of a Jumbo Loan:

✔️ Higher Loan Amounts – Borrow beyond the conventional loan limits (typically over $726,200 in most areas and over $1,089,300 in high-cost markets).

✔️ Flexible Property Options – Can be used for primary residences, second homes, and investment properties.

✔️ Competitive Interest Rates – Rates are often comparable to conventional loans, depending on creditworthiness.

✔️ No Private Mortgage Insurance (PMI) – Unlike conventional loans that require PMI for lower down payments, Jumbo Loans often waive PMI requirements.

✔️ Custom Loan Structures – Fixed-rate and adjustable-rate mortgage (ARM) options available.

Jumbo Loan Requirements:

Since Jumbo Loans are not backed by Fannie Mae or Freddie Mac, they have stricter underwriting guidelines to offset lender risk:

✔️ Strong Credit Score – A minimum of 700-720+ is usually required, but some lenders may accept lower with compensating factors.

✔️ Larger Down Payment – Expect to put 10-20% down, though some lenders offer lower down payments.

✔️ Lower Debt-to-Income (DTI) Ratio – Typically capped at 43% or lower, ensuring financial stability.

✔️ Higher Cash Reserves – Lenders may require borrowers to have 6-12 months’ worth of mortgage payments in reserves.

✔️ Full Documentation – Requires proof of stable income, employment history, and liquid assets.

Who Should Consider a Jumbo Loan?

✔️ Buyers looking to purchase high-value homes beyond standard loan limits.

✔️ Borrowers with strong credit and stable income history.

✔️ Homeowners interested in luxury properties, investment properties, or vacation homes.

✔️ Professionals or high-income earners looking for custom financing options.

If you’re planning to purchase a home in a competitive market or need a loan exceeding conventional limits, a Jumbo Loan could be your best financing solution.

Get in touch today to explore your eligibility and financing options!