JUMBO LOANS

Jumbo Loan Overview

A Jumbo Loan is a non-conforming mortgage used for financing homes that exceed FHFA conforming loan limits. 

These loans are common for luxury or high-cost-area properties and come with stricter lending requirements. 

Eligibility

 Loan amount above conforming limits 

• Strong income and employment documentation 
• 640+ credit score (680+ preferred) 
• 10.01%+ down payment 
• DTI ≤ 43%

Example:
$1.5M purchase, 20% down → $1.2M loan at 7.0% (7.201% APR)
Payment: $7,984/mo, excluding taxes/insurance. 

Credit Score 

• Aim for 660 or higher for best approval odds 
• Lower scores may qualify with alternative products

Down Payment  

• Most programs require 10.01% or more 
• Low down payment options and DPA are uncommon

DTI Requirements

DTI = monthly debts ÷ gross income
Example: $2,300 ÷ $6,000 = 38% DTI
Max typical DTI for Jumbo: 43% 

Mortgage Insurance 

• PMI is not available on Jumbo Loans 
• This is why higher down payments and stronger credit are required

Eligible Property Types 

Varies by product but may include:

• Primary residence 
• Second home 
• Some investment properties 
• 1–4 unit properties, single-family homes, condos, PUDs (depending on program)

How to Apply  

Prepare:

• Income & employment docs (W-2s, pay stubs, tax returns) 
• Bank/asset statements 
• 2-year residential history 
• Full credit report

Alternative Loan Options (Reduced Documentation)

• Bank statement loans 
• Asset-based loans 
• P&L-based loans for self-employed borrowers
• Stated Income - No Verification of income