Jumbo Loans

A Jumbo Loan is a mortgage designed for financing high-value homes that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.

Because these loans go beyond standard limits, they’re known as non-conforming loans. Jumbo loans give qualified borrowers the ability to purchase or refinance luxury properties without needing multiple smaller loans.

How a Jumbo Loan Works

Jumbo loans operate like conventional mortgages but cover larger amounts and often require stronger financial qualifications. Borrowers can select from:

  • Fixed-rate or adjustable-rate (ARM) options

  • Loan terms ranging from 15 to 30 years

  • Purchase or refinance programs

Since jumbo loans are not government-backed, lenders set their own standards often requiring excellent credit, low debt ratios, and verifiable assets.

Benefits of a Jumbo Loan

Finance High-Value Properties

Borrow beyond conforming limits to purchase or refinance luxury homes or properties in high-cost areas.

One Loan, One Payment

Avoid juggling multiple loans—finance the full amount with a single, streamlined mortgage.

Competitive Interest Rates

Qualified borrowers often receive favorable rates comparable to or even lower than conventional loans.

Flexible Loan Terms

Choose a fixed or adjustable-rate mortgage with repayment terms that fit your financial goals.

Broad Property Eligibility

Use a jumbo loan for a primary residence, vacation home, or investment property.

Things to Consider

  • Credit Requirements: Typically a 700+ credit score is needed for approval.

  • Down Payment: Expect to put down 10–20%, depending on credit and loan size.

  • Debt-to-Income Ratio: Most lenders require a DTI below 43%.

  • Asset Verification: Proof of cash reserves and stable income is often required.

  • Non-Conforming Guidelines: Because these loans aren’t sold to Fannie Mae or Freddie Mac, requirements can vary by lender.

Is a Jumbo Loan Right for You?

A Jumbo loan could be ideal if you:

  • Are purchasing or refinancing a high-value home

  • Have strong credit and reliable income

  • Want flexible terms and one streamlined mortgage

  • Plan to finance a property in a high-cost or luxury market