Jumbo Loans 101: Explore Financing for High-Value Homes

Your Pathway to Affordable Homeownership
When the value of the property you intend to buy exceeds conforming loan limits, you need a jumbo loan. This program is ideal for luxury homes, investment properties, and residences that are located in high-cost-of-living areas.
Your Pathway to Affordable Homeownership
What a Jumbo Loan Can Be Used For?

What Is a Jumbo Loan?

A jumbo loan is a type of mortgage that is used to buy property that exceeds federal conforming loan limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans give borrowers:

Higher loan amounts

With a jumbo loan, borrowers can apply for a more expensive mortgage than with a conforming loan, which is ideal for luxury homes or multi-unit properties.

Flexible terms

Borrowers can customize their loan structure and terms to make repaying a large mortgage easier to budget for.

Access to desirable neighborhoods

Borrowers can purchase properties in prime real estate markets and high-cost areas that otherwise might not be available with a traditional home loan.

What a Jumbo Loan Can Be Used For?

What a Jumbo Loan Can Be Used For?

High-value and luxury homes

Jumbo loans are ideal for high-value and luxury homes with custom features. Whether you're looking for extensive square footage or upscale amenities, a jumbo loan can be tailored to fit.

Investment properties

Jumbo loans can provide the capital for real estate investors to purchase more expensive properties with high appreciation potential that traditional loans may not support.

Vacation homes

Jumbo loans can also be used to buy vacation homes that are priced above conforming loan limits, like beachfront properties and houses in popular tourist destinations.

What a Jumbo Loan Can Be Used For?​
FHA Pros

Pros

FHA - Cons

Cons

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Jumbo Loan Alternatives

How Do I Know If a Jumbo Mortgage Is Right for Me?

You want to buy a high-value home

If the property you're looking to buy exceeds federal conforming loan limits, you may need a jumbo loan to finance your purchase.

You have enough saved for a considerable down payment

Jumbo loans often require a larger down payment, so if you have the savings set aside, this program could be a good fit.

The property you purchase will generate revenue

If the property you're buying is an investment and has the potential to earn income, this can help offset higher mortgage payments.

How Do I Know If a Jumbo Loan Is Right for Me? ​
When Is the Best Time to Use a Jumbo Loan?  

When Is the Best Time to Use a Jumbo Loan?

The best time to use a jumbo loan is for the purchase of a high-value property that falls outside of the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Since jumbo loans have stricter qualification criteria due to their size, you should have a strong financial profile with a strong credit score and a manageable debt-to-income ratio to secure the most favorable terms.

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FAQ

How much money can I borrow with a jumbo home loan?
There is no cap on the amount of money you can borrow with a jumbo mortgage. The program’s minimum starts at just above the current conforming loan limits and can go as high as several million depending on the borrower’s financial qualifications.
Do I need a co-borrower to apply for a jumbo loan?
While a co-borrower is not necessary to apply for a jumbo loan if you meet the program’s qualification criteria alone, having one may increase your chances of approval if you don’t.
How long will it take to process my jumbo loan application?
The approval process for a jumbo loan typically takes longer than for a conventional mortgage and can range from several weeks to a few months. This is due to the larger loan amount and more detailed underwriting requirements. Factors like the complexity of your financial situation and potential delays in gathering important paperwork can also affect this timeline.
What if I don't qualify for a jumbo loan?
If you’re unable to meet the qualifications for a jumbo loan, you might consider other options such as two separate loans (a first mortgage and a second mortgage) or applying for a conforming loan in combination with a piggyback loan to cover the remainder of the property’s value.
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