Expert Mortgage Solutions Tailored To You. Contact Us for a Free Consultation Today!
Expert Mortgage Solutions Tailored To You. Contact Us for a Free Consultation Today!
A jumbo loan is a type of mortgage utilized to finance properties that surpass the limits set by conventional conforming loans. In 2025, the maximum amount for a conforming loan in most counties is $806,500, as established by the Federal Housing Finance Agency (FHFA). Homes exceeding the local conforming loan limit necessitate the use of a jumbo loan.
Termed non-conforming conventional mortgages, jumbo loans pose higher risk for lenders as they lack the guarantee from Fannie Mae and Freddie Mac. This absence of protection means the lender is exposed to losses in the event of borrower default. Jumbo loans are commonly offered with either a fixed or adjustable interest rate and are available in various terms.
Jumbo loan qualifications involve stricter underwriting criteria due to the larger and riskier nature of these loans. Lenders typically demand a FICO score of 700 or higher, with some requiring 720. Debt-to-income ratios are scrutinized, with a possible maximum cap of 45%. Having substantial cash reserves, often covering one year of mortgage payments, increases approval chances. Extensive documentation, including tax returns, W-2s, 1099s, bank statements, and investment account details, is necessary. Additionally, a second home appraisal for the intended property purchase.
Jumbo loans differ from conforming loans primarily in size. They often require a substantial down payment, typically 20%, possibly as low as 10%. Jumbo mortgage rates may be slightly higher, but competitive rates are available. Due to their size and additional qualifying steps, jumbo loans generally entail higher closing costs and fees.
Looking for more information on Jumbo Loans? Email me at jc@zpmloans.com to explore how we can help you finance your dream home!
The primary advantage of jumbo loans is the ability to secure more financing for your ideal home, potentially enabling access to higher-quality properties without the need for multiple loans. Additionally, jumbo loans often come with lower down payment requirements.
Yes, 2/1 interest rate buydown options are available.
Jumbo loans offer fixed and adjustable rates. Opt for a fixed-rate for stable payments or choose an adjustable-rate if you plan to sell or expect income increases.
DISCLAIMER: All information is deemed reliable but not guaranteed. Neither the mortgage company or website company shall be responsible for any typographical errors, misinformation, misprints and both shall be held totally harmless. Information is subject to change without notice. This is not an offer for the extension of credit or a commitment to lend; all applicants must meet lender guidelines.
© 2023 -All Rights Reserved / Jennifer Chicano - Mortgage Broker / NMLS# 1194079 / AZ# 1050227 / CA# DFPI1194079 / CO# 100533633 / PA# 112789
Zero Point Mortgage Services / NMLS# 1216108 / MB# 0934728 / CA# 60DBO66276
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.