JUMBO LOANS

Competitive Rates. Greater Flexibility. One Mortgage.

PURCHASE THE HOME OF YOUR DREAMS

Jumbo loans provide the buying power and flexibility to fund the home you've been waiting for, with a single mortgage

Jumbo loans can be used to purchase higher priced homes and high-end construction homes
Loan amounts greater than $647,200 (for 2022)
Jumbo loans allow for one loan instead of two conventional loans
Fall outside of the Fannie Mae and Freddie Mac guidelines, which can provide greater flexibility

There are two types of conventional mortgages - conforming (loan amounts under the conventional conforming loan limit for that year) and non-conforming, which do not conform to the Fannie Mae and Freddie Mac limits. If you need a loan that is higher than the limits, your loan is considered to be "non-conforming". A jumbo loan is one type of non-conforming loan.
Jumbo loans are typically used to buy more expensive and high-end custom homes. They have more strict underwriting and require more cash reserves than conforming loans, due to the higher loan amounts.
Down payments can start at 5% but with more down, interest rates may become much more competitive

Jumbo loans usually have stricter underwriting guidelines. To be successfully approved for a jumbo loan you must have sufficient income, clean credit, higher credit scores, and greater assets in reserves.
The average credit score should be 740 or above, but can be as low as 660. If scores fall beneath the requirements, it would need to be offset with low debt-to-income ratio. Some jumbo loans have a hard cap of 45% debt-to-income ratio but every scenario can be different.
A borrower is more likely to be approved if they have ample access to reserve funds. It is not uncommon for lenders to ask borrowers to show enough reserves or assets to cover between 6 to 12 months of mortgage payments.
The property appraisal must support the purchase price for the home and the mortgage amount.

Jumbo loans allow you to finance a more expensive property.
This loan allows you to make the choice of how to invest your money whether is be in equity of a home or other investments, making jumbo loans a useful financial tool.

These size of jumbo loans make them a bit riskier so the underwriting guidelines are more strict. Low credit scores will likely require a much larger down payment. You also must have 6 or more months available in an assets to secure a jumbo loan.
Some jumbo loans may require two appraisals.
Closing costs and fees may be higher due to the larger loan amount and additional qualifying steps.