Jumbo Loans
Overview
A Jumbo Loan is a non-conforming mortgage that exceeds the loan limits set by the Federal Housing Finance Agency (FHFA).
These loans are typically used to finance luxury properties or high-priced homes in competitive markets.
Because jumbo mortgages are not backed by Fannie Mae or Freddie Mac, they come with stricter lending requirements— but for qualified borrowers, they can make higher-value homeownership entirely possible.
💡 If you have a strong credit score, a low debt-to-income ratio, and a healthy down payment, a jumbo loan might be your perfect fit.
Wide Range of Loan Options
Personalized Financial Guidance
Requirements 📋
The underwriting process for jumbo mortgages mirrors that of conventional loans but includes tighter qualification standards and extra verification steps:
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🏠 Property Appraisals: Lenders may require two separate appraisals to confirm the home’s value.
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💳 Credit Score: Most lenders look for a minimum FICO score of 700+.
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💼 Debt-to-Income Ratio (DTI): Typically must be below 45% to demonstrate strong repayment capacity.
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💰 Down Payment: Usually around 20%, though it may vary depending on the lender — sometimes 15%, 20%, or 30% for home purchases.
📄 Because jumbo loans involve higher risk and larger loan amounts, lenders carefully review every aspect of the borrower’s financial profile.
Benefits 🌟
For qualified buyers, jumbo loans offer a powerful financing option with impressive advantages:
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🔹 Enables purchase of high-value and luxury homes.
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🔹 Often provides competitive interest rates for well-qualified borrowers.
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🔹 Flexible loan terms and no private mortgage insurance (PMI) required for down payments of 20% or more.
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🔹 Can cover both primary residences and investment properties.
💬 When a traditional conforming loan isn’t enough — a jumbo loan bridges the gap.
Questions? We Have Answers. 📞
If you’re interested in learning whether a Jumbo Loan is right for your situation, we’re here to help.
Contact us today or complete our pre-approval form, and one of our experienced loan officers will walk you through your options.