Jumbo Loans

What Are Jumbo Loans?

A Jumbo Loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA), which range from $806,500 to $1,209,750 depending on the county. These loans are tailored for high-value properties, luxury homes, and real estate in competitive markets where standard conforming loans are insufficient.

Key Features

• • Loan Amount: Starts above $806,500 (or higher in pricier areas).

• • Interest Rates: Slightly higher than conforming loans—often 6.75%-7% vs. 6.5% for a 30-year fixed.

• • Terms: Available as 30-year fixed, 15-year fixed, or adjustable-rate mortgages (ARMs).

Who Qualifies?

• • Credit Score: Minimum of 700 (some lenders accept 680).

• • Down Payment: Typically 20% or more—e.g., $200,000 on a $1 million home—though 10-15% may be possible with stricter terms.

• • Debt-to-Income Ratio: 43% or less.
  • Cash Reserves: 6-12 months of mortgage payments in savings.