Bigger home, bigger loan.
Our Jumbo Home Loans
Does your dream home come with a bigger price? Then a jumbo loan may be what you will need to secure the deal. While similar to conventional loans, jumbo mortgages exceed the amount of conventional conforming loan limits. With larger loans come increased risk, so keep in mind that jumbo loan qualification requirements may be increased too.
About Jumbo Loans
A jumbo loan, or jumbo mortgage, is a mortgage loan that exceeds the limits established by the Federal Housing Finance Agency (FHFA). Jumbo loans are considered nonconforming loans because they do not conform to those limits.
Because these jumbo mortgages don’t have the guarantees that come with conforming loans, borrowers tend to be subject to greater scrutiny, and even possibly higher borrowing costs.
In some of today’s most desirable real estate markets, it can be difficult to determine how to finance your dream home. With a jumbo loan, you have more options than ever before, allowing you to choose the home you want in the neighborhood you want without worrying about the stress and inconvenience of multiple mortgages. Benefits of a jumbo loan include:
- Down Payment: May be less than 20%; however, private mortgage insurance may be required.
- VA "Jumbo" Loans are Available: No longer limited to conventional loans, with a VA "jumbo" loan, you may enjoy the advantages of the VA loan with the excellent interest rates of a jumbo loan.
- Buy in More Desirable Markets: Jumbo loans provide options that allow buyers to choose the best neighborhoods and the most desirable in-town or resort communities.
- Purchase a Luxury Home: If you’ve been dreaming of a luxury home with the floorplan you desire, or a home located in a resort-style community, a jumbo loan is a great option.
- Credit score: Sometimes as low as 680, but typically 700 or higher.
- Down payment: Typically 10% to 30%. Any down payment less than 20% generally requires PMI (private mortgage insurance).
- A low debt-to-income ratio: Your total monthly debt should be between 38% to 43% of your total gross monthly income.
- Closing Costs: Can be higher than conforming loans due to manual underwriting, additional appraisals, etc.
- Cash Reserves: 6 to 18 months of mortgage payments.