Jumbo Loans
Jumbo loans are mortgage loans designed for higher-priced properties that exceed the conforming loan limits established by the Federal Housing Finance Agency (FHFA). Because these loans exceed conforming limits, they are not eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac.
We offer both traditional Jumbo loan programs and Non-QM (Non-Qualified Mortgage) Jumbo financing options to help meet the needs of a wide range of borrowers.
Conforming loan limits can vary by location and are updated periodically. Higher-cost areas may allow significantly higher conforming loan limits compared to standard counties.
Because Jumbo loans are not backed by Fannie Mae or Freddie Mac, qualification requirements are often stricter and may include:
Higher credit score requirements
Larger down payments
Stronger reserve requirements
Additional income and asset documentation
The terms “Jumbo loan,” “non-conforming loan,” and “non-conforming conventional loan” are often used interchangeably to describe mortgage loans that exceed conforming loan limits.
Jumbo loan eligibility requirements:
- Lower DTI requirements compared to conventional loans
- A very high credit score (over 700)
- Proof of income and assets to cover payments
- Buyers must prove they have enough cash on hand to cover a year of mortgage payments.
- Down payments required for a jumbo loan range between 5%-20% of the home price.
Pros Of Jumbo Loans:
- Higher Loan Limits
- Lower Down Payment
- One Single Loan
Cons Of Jumbo Loans:
- Higher Interest
- Need a Clean Credit Score
- More Closing Costs
- Not All Properties Qualify
