Jumbo Home Loan

What’s a jumbo mortgage loan?

Jumbo mortgages are home loans that exceed conforming loan limits. A jumbo loan is one way to buy a high-priced or luxury home. If you have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you.

Jumbo mortgages are a good solution for borrowers who are looking to buy a higher-priced home.

Higher Purchase Limits

Jumbo mortgages can exceed the conforming loan limit, currently $417,000 in most parts of the United States.

Competitive Rates

Jumbo loan rates have reached historic lows in recent years.

Second Mortgage

Many jumbo mortgage lenders may allow you to take out a second mortgage for a combined loan-to-value ratio of up to 90 percent.

Requirements and Qualifications
Credit History	Conventional loans are a good choice for borrowers with very good credit.
Financial strength	When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo for loans is 45 percent, and the required reserve amount for jumbo loan borrowers can be as high as 20 percent of the value of the loan.
Down payment	There is no private mortgage insurance option with a jumbo mortgage, so the required down payment will be larger – typically 20 percent.
Property appraisal	The property appraisal must support the purchase price for the home and the mortgage the borrower wants.