What Is a Jumbo Loan?
A jumbo loan mortgage is any home loan that is more than the conforming limit of $510,400 according to Fannie Mae guidelines on conventional mortgages. FHA mortgages, however, have upper mortgage limits that are set for each county starting at the lowest loan limit of $331,760.
Since most banks do not have jumbo loan mortgage products available, we’ve made them one of our specialties. Our jumbo mortgages are also available as a portfolio product for expanded guidelines outside of conforming limits. We have several jumbo loan mortgage programs that can put you in control of your mortgage investment.
Jumbo Loan Qualifications
To qualify for a jumbo loan, you typically need at least a 20 percent down payment. Your expected monthly mortgage payment should be no more than 38 percent of your pretax income. Credit, debt-to-income, and financial requirements are often more stringent on jumbo loans.
Who Should Get a Jumbo Loan?
Jumbo loans are best for high-income earners with good credit and their eye on a higher-end home. They’re not the right fit if you’re buying a vacation home or investment property.
Pros and Cons of Jumbo Loans
- Available in fixed and adjustable rate options
- Large loan limits
- Only available for primary homes, not secondary, vacation, or investment properties
- Requires a high credit score
- Requires 20 percent down