A jumbo, or non-conforming, mortgage loan allows you to purchase a more expensive home with a loan amount above the conforming limit set by the Federal Housing Finance Agency.
In most areas of the country, the conventional conforming loan limit is $510,400; however, the limit is $765,600 in higher cost areas where single-family homes tend to be priced above average.
Jumbo Loan Qualifications
To qualify for a jumbo loan, you typically need at least a 20 percent down payment. Credit, debt-to-income, and financial requirements are often more stringent on jumbo loans.
Jumbo Loan Highlights
If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you. Highlights of non-conforming loans include:
- Finance a home over the maximum loan amount established by the Federal Housing Finance Agency
- Higher purchase limits allow you to purchase more house
- Convenience of one loan for the entire loan amount (no need for a second mortgage)
- Can be used to finance a primary residence, second home, or investment property
- Fixed-rate or adjustable-rate (ARM) options available
Is a Jumbo Mortgage Right for You?
We understand choosing the perfect loan option can be scary, confusing, and hard. We are here to provide you with the necessary information and guide you to a simple and low-stress mortgage experience.
If you are interested in a jumbo mortgage or would like to learn about the other loan options available to you, fill out the form below to request a free consultation.
