Jumbo Loans

Jumbo mortgages resemble conventional mortgages, the only difference here is that jumbo mortgages are loans that exceed conforming loan limits established by regulation. They are typically used to buy a high-priced or luxury home and thus have tighter guidelines than other loan types. If you have a low debt-to-income ratio, a strong credit score, and a large down payment, then a jumbo loan may be what you are looking for. 


The underwriting process for jumbo mortgages is similar to that of a conforming/conventional mortgage with a few added requirements, such as the following:

  1. Property Appraisal(s)-Jumbo lenders will sometimes require 2 appraisals instead of just 1. 
  2. Credit History- Borrowers must generally have a strong FICO score of 700 or higher.
  3. Financial Ability-Debt-to-income may be required to be lower than 45% in order to show ability to pay.
  4. Down Payment- The required down payment for the property will typically be around 20%, however, down payment requirements differ and may be lower or higher depending on the individual file.
    1. This is dependent on the lender; the minimum down payment could be 10%, 15%, 20% or 30% for home purchases.


Jumbo mortgages are a good solution for borrowers who are looking to buy a higher priced home when a conventional mortgage just won't cut it. There are a variety of options available to borrowers who want to use a jumbo loan to finance their purchase so be sure to contact me to find out if a jumbo loan would be right for you.