Jumbo Loan
Looking to finance a high-value or luxury home? Our Jumbo Loan programs are designed to help you secure the funding you need.
Why a Jumbo Loan?
A Jumbo Loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. These loans are often used to finance luxury homes or properties in high-cost markets where traditional loan limits don’t meet the buyer’s needs.
With a Jumbo Loan, borrowers can access higher loan amounts, but these loans typically come with stricter qualification standards. Lenders often require:
Higher credit scores for approval
Larger down payments (often starting around 10%)
Lower debt-to-income (DTI) ratios for added financial security
Jumbo loans may offer either fixed or adjustable interest rates and can be used to purchase a range of property types — including primary residences, vacation homes, or investment properties.
If you’re purchasing a high-priced property that exceeds standard loan limits, a Jumbo Loan can be the right solution.
Common Misconceptions About Jumbo Loans
“Only for the Wealthy”
While often used to finance upscale properties, Jumbo Loans are not limited to high-income earners. Many financially qualified borrowers use them to purchase homes in competitive housing markets.
“Harder to Qualify”
Jumbo loans do have tighter underwriting standards than conforming loans, but borrowers with good credit and strong finances can often qualify without difficulty.
“Higher Interest Rates”
Jumbo loan rates are often competitive, and in some cases, can be lower than conventional loan rates.
“Require Huge Down Payments”
Although a larger down payment is typical, borrowers may still qualify for Jumbo financing with as little as 10% down, depending on their lender and credit profile.
“Only for Primary Homes”
Jumbo loans can finance primary residences, second homes, and even investment properties, offering flexibility to meet various buying goals.
The Jumbo Loan Process
- Eligibility Check:Review income, credit score, and debt-to-income ratio.
- Select a Lender:Compare lenders offering jumbo loans.
- Pre-Approval:Submit financial details for a pre-approval letter.
- Home Search:Find a property within your budget.
- Application Submission: Complete the application with necessary documents.
- Appraisal:Lender orders an appraisal to assess property value.
- Processing:Lender reviews application and appraisal.