Jumbo Loans

What are Jumbo Loans?

Jumbo loans are mortgage loans that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are designed for financing higher-priced properties that require more substantial loan amounts than traditional loans allow. Because jumbo loans do not have the backing of Fannie Mae or Freddie Mac, they come with stricter credit requirements, higher down payments, and more rigorous income verification. However, they offer a solution for buyers looking to purchase luxury homes or properties in high-cost areas.

Are Jumbo Loans Right for You?

Jumbo loans are ideal for homebuyers looking to finance properties that exceed the conforming loan limits, typically above $726,200 in most areas (limits may be higher in certain high-cost regions). These loans are suited for borrowers with strong financial profiles, including high credit scores, significant down payments, and stable, high incomes. If you’re purchasing a luxury home or a high-value property, a jumbo loan may be the right fit for you.

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Eligibility Requirements

To qualify for a conventional loan, you must typically meet the following requirements:

Minimum Credit Score

A credit score of 700 or higher is generally required, though some lenders may have more lenient standards.

Down Payment

A down payment of at least 10% is typically required, though many lenders prefer 20% or more to qualify for better terms.

Debt-to-Income Ratio

A maximum debt-to-income (DTI) ratio of 43% or lower is generally preferred to demonstrate your ability to handle large loan payments.

Income Verification

Lenders will require proof of high, steady income to ensure you can afford the larger monthly payments of a jumbo loan.

Cash Reserves

Most lenders will require you to have significant cash reserves (often 6-12 months’ worth of payments) on hand to qualify for a jumbo loan.

Jumbo Loans

Numbers at a Glance

Here’s a quick overview of key numbers associated with this type of loans

Minimum Credit Score

700

Varies by lender

Down Payment

10% to 20%

Varies by loan type

Maximum DTI Ratio

43%

Varies by lender

Loan Term

15 or 30

Years to payoff the loan

Upfront Mortgage Insurance Premium (UFMIP)

None

Depending on lender requirements

Annual Mortgage Insurance Premium (MIP)

None

But a higher down payment is required

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We offer a variety of loan programs designed to meet the needs of every homebuyer.

Jumbo Home Loan is perfect for you?

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Our team is here to support you with personalized guidance.

Benefits of Jumbo Loans

Higher Loan Amounts

Jumbo loans allow you to finance homes that exceed conventional loan limits, making them perfect for luxury properties or homes in expensive areas.

No Private Mortgage Insurance (PMI)

Despite requiring a lower down payment, most jumbo loans do not require private mortgage insurance, helping you save on monthly payments.

Flexible Loan Terms

Jumbo loans offer flexible loan terms, including 15- or 30-year options, allowing you to choose the repayment plan that works best for you.

Competitive Interest Rates

Jumbo loans often come with competitive interest rates that are closely aligned with conventional loan rates, providing good value for high-balance loans.

Not the Loan You're Looking for?

Check out other loan options

Ideal for borrowers with good credit, conventional loans offer competitive interest rates and flexible terms.

Available to veterans and active-duty service members, VA loans provide excellent terms with no down payment required.

Backed by the Federal Housing Administration, FHA loans are perfect for first-time homebuyers or those with less-than-perfect credit.

Combines purchase and renovation costs into one loan, perfect for buyers looking to fix up a property.

ARMs start with a lower fixed interest rate for an initial period, then adjust periodically based on market conditions.

These government-backed loans are tailored for rural and suburban homebuyers, often with zero down payment.

Pay only the interest on your mortgage for a set period, ideal for buyers who expect an increase in income or future refinancing.

Enjoy the security of a consistent interest rate and stable monthly payments for the life of your loan.

Allows homeowners 62+ to access home equity without monthly payments, repaid when the home is sold or vacated.

Flexible loans for borrowers who don’t meet standard lending criteria are ideal for those with irregular income.

Ready to start an application for a loan?

You can always ask for advice from a mortgage loan expert.

Jumbo Loans FAQ's

What is the loan limit for a jumbo loan?

Jumbo loans are for loan amounts that exceed the conforming loan limit, which is $726,200 in most areas. This limit can be higher in high-cost regions.

Do jumbo loans have higher interest rates?

Jumbo loans often have interest rates that are competitive with conventional loans, though they may be slightly higher depending on market conditions and your credit profile.

Is PMI required for a jumbo loan?

No, most jumbo loans do not require private mortgage insurance (PMI), even with lower down payments, but they may require higher down payments to offset the risk.

Find Your Perfect Jumbo Loan

First Finance Lending will guide you with expert advice and personalized service to start your homeownership journey with the perfect loan program.