When your dream home exceeds the limits of a standard mortgage, you need a Jumbo Loan.
In most U.S. counties, the "Conforming Loan Limit" is $766,550 (for 2024). If you need to borrow more than that, Fannie Mae and Freddie Mac won't back the loan. Instead, private lenders (like us) step in to finance these high-value properties.
Because we take on more risk with these larger amounts, the qualification standards are higher—but the rates are often just as competitive.
How the Jumbo Loan Works
A Jumbo Loan is a "Non-Conforming" mortgage. This means it doesn't fit the standard government-sponsored box. Lenders keep these loans on their own books (portfolio loans) or sell them to private investors.
- Higher Limits: We can finance amounts well into the millions.
- Competitive Rates: For strong borrowers, Jumbo rates can sometimes be lower than standard rates.
- Custom Underwriting: We look at your full financial picture—assets, reserves, and income stability—rather than just a credit score.
Jumbo vs. Conforming Loans
| Feature | Jumbo Loan | Conforming Loan |
|---|---|---|
| Loan Amount | Unlimited* (Subject to approval) | Capped at $766,550+ |
| Credit Score | 700–720+ Preferred | 620 Minimum |
| Down Payment | 10% – 20% | 3% – 5% |
| Cash Reserves | 6–12 Months Required | 0–2 Months Required |
| Debt-to-Income | Strict (Max 43%) | Flexible (Up to 50%) |
Is This Program Right for You?
Jumbo loans are designed for established borrowers with strong financial profiles. This program is ideal if:
- You Are Buying in a High-Cost Area: You live in a market where "average" homes cost over $800k.
- You Have Excellent Credit: Your score is 700+ (720-740+ gets you the best terms).
- You Have High Income & Assets: You can document stable high income and have significant savings left over after the down payment.
- You Want Luxury: You are purchasing a luxury estate, a vacation home, or a high-end investment property.
Program Guidelines & Requirements
- Credit Score: Generally 700+. (Scores below 700 are rarely approved for Jumbo financing).
- Down Payment: Typically 20%, though some strong profiles can qualify with 10%–15% (often without PMI).
- Reserves: You must show 6–12 months of mortgage payments in liquid assets (cash, stocks, retirement funds) remaining after closing.
- Documentation: "Full Doc" is standard. Expect to provide 2 years of tax returns, W-2s, and asset statements.
- Appraisals: For very high-value homes, we may require two separate appraisals to confirm the value.
The Application Process
- Preparation: Ensure your liquid assets are consolidated and easy to document.
- Pre-Approval: We review your full tax and asset history to issue a solid pre-approval.
- Property Selection: You find a luxury home. We verify the price aligns with market value.
- Closing: Timeline is typically 30–45 days.
To learn more, read our complete guide to Jumbo Loans →
