- Home Loan Options
- Jumbo Loans
Jumbo Loans
Go beyond normal borrowing limits with a jumbo loan customized to your needs.
What To Know About Jumbo Loans
Who Are Jumbo Loans Best For?
Jumbo mortgages are best for home buyers who need to borrow more than the conforming loan limit in their area. These mortgages also are a good fit for borrowers who want to avoid taking out multiple loans to buy a home.
How Do Jumbo Loans Work?
- Jumbo mortgages are for home buyers who need to borrow more than the conforming loan limit to buy a home.
- Lenders are unable to reduce their risk by selling jumbo loans to Fannie Mae or Freddie Mac, so they usually set stricter eligibility requirements.
- Jumbo mortgages can have a fixed or adjustable interest rate.
- Your interest rate will depend on your credit score, down payment, debt-to-income ratio, market conditions and more.
- Jumbo loans have a repayment term of 15 or 30 years.
How Do I Qualify For A Jumbo Loan?
Eligibility requirements vary by lender, but you’ll typically need the following:
- A down payment of at least 10% to 20%
- A credit score of at least 680
- A debt-to-income ratio of less than 45%
- Closing costs ranging from 2% to 5% of the purchase price
- Enough cash reserves to cover up to 12 months of mortgage payments
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Jumbo Loan Benefits
- You can buy a more expensive home.
- Jumbo loans have competitive interest rates.
- You can avoid taking out multiple loans.
Property Requirements
- A primary residence
- Vacation homes
- Investment properties
Frequently Asked Questions
Here are answers to common questions about jumbo loans.
Are jumbo loans more difficult to qualify for?
Jumbo loans are more difficult to qualify for because lenders take on more risk and set stricter requirements for borrowers. For example, they may require a higher credit score and a larger down payment.
What documents do you need to apply for a jumbo loan?
You can expect your lender to ask for your recent pay stubs, W-2s, 1099s, tax returns, bank statements and investment account statements.
Do jumbo loans have higher interest rates?
You might expect jumbo loans to have higher interest rates because they’re larger than conforming loans. However, jumbo loan rates usually are competitive with conforming loan rates.
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