Jumbo loans are designed for buyers purchasing high-value properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
These loans are often used to finance luxury homes, large acreage properties, or real estate in competitive, high-priced markets. Because lenders take on greater risk without the backing of Fannie Mae or Freddie Mac, jumbo loans typically require stronger qualifications. This can include a credit score of 700 or higher, a larger down payment (often starting at 10–20%), and lower debt-to-income ratios.
Jumbo loans can be structured as fixed-rate or adjustable-rate mortgages (ARMs). Fixed rates provide long-term stability, while ARMs can offer lower initial rates, ideal if you plan to sell or refinance before the adjustment period. Some jumbo programs even allow interest-only payments for a set time, giving buyers greater cash flow flexibility early on.
Beyond income and credit, lenders also look for strong reserves meaning several months’ worth of mortgage payments saved after closing. This helps demonstrate that you can comfortably manage a larger loan.
While jumbo loans come with more stringent guidelines, they also provide the flexibility to finance a single property without splitting it into multiple loans. If you’re targeting a property that requires financing above standard limits, we can structure your jumbo loan for optimal terms while guiding you through the documentation process to make sure there are no surprises at underwriting.
