Jumbo Loans
Financing for luxury homes and high-value properties
Jumbo loans, also known as non-conforming loans, are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency. These loans are designed for luxury properties and homes in highly competitive real estate markets where standard loan limits are insufficient.
Min Down Payment
20%
Min Credit Score
700
Loan Amounts
$766,550+
Cash Reserves
6-12 months
Benefits
- Finance homes above conforming loan limits
- Competitive interest rates for qualified borrowers
- Flexible loan terms and structures
- Interest-only payment options available
- Can finance primary homes, second homes, and investment properties
- Portfolio lending options for complex financial situations
- No PMI options with sufficient down payment
- Cash-out refinancing for high-value properties
- Loans up to $3 million or more for qualified borrowers
Requirements
- Excellent credit score (typically 700+ minimum)
- Large down payment (usually 20-30% minimum)
- Low debt-to-income ratio (typically below 38-43%)
- Significant cash reserves (6-12 months of payments)
- Detailed income documentation and verification
- Property appraisal (sometimes two appraisals required)
- Higher income requirements
- Strong employment history and stability
Frequently Asked Questions
What makes a loan a jumbo loan?
A jumbo loan exceeds the conforming loan limits set by the FHFA. For 2024, any loan above $766,550 in most areas is considered a jumbo loan, though limits are higher in expensive markets like San Francisco or New York.
Are jumbo loan rates higher than conventional loans?
Not necessarily. While jumbo loans traditionally had higher rates, competitive markets have led to jumbo rates that are often comparable to or sometimes even lower than conventional loan rates for well-qualified borrowers.
Can I get a jumbo loan with less than 20% down?
Some lenders offer jumbo loans with 10-15% down for exceptional borrowers, but these typically require higher credit scores, more reserves, and may have higher interest rates. Most jumbo loans require at least 20% down.
What are cash reserves and why are they important?
Cash reserves are liquid assets you have after closing that could cover your mortgage payments. Lenders want to see 6-12 months of reserves for jumbo loans to ensure you can handle the larger payments even if your income is disrupted.
Ready to explore your Jumbo Loans options?
Our mortgage experts are here to guide you through the process