Jumbo Loans

About Jumbo Loans

Jumbo loans are a type of mortgage designed for financing high-value properties that exceed the conforming loan limits set by Fannie Mae and Freddie Mac.

These loans provide access to larger loan amounts, making them ideal for luxury homes, high-cost markets, or borrowers seeking to purchase or refinance a property with a significant price tag. With competitive rates and flexible terms, jumbo loans cater to borrowers with strong credit and financial profiles.

Our team has multiple jumbo lenders offering great jumbo rates to help you with your next home purchase.

Get more information about the home buying process

Some Key Jumbo Loan Characteristics

Higher Loan Amounts: Exceeds the conforming loan limit, currently $806,500 in most areas and higher in designated high-cost regions.
Flexible Terms: Options for fixed or adjustable-rate mortgages to suit individual preferences.
Competitive Interest Rates: Rates are often slightly higher than conforming loans but still competitive.
No Private Mortgage Insurance (PMI): Typically not required, even with less than 20% down.
Primary and Secondary Homes: Can be used to finance primary residences, vacation homes, and investment properties.
Custom Loan Solutions: Tailored options for complex financial situations, including self-employed borrowers and those with significant assets.

Considerations for Borrowers

Stricter Qualifications: Requires strong credit scores, higher income, and larger reserves compared to conforming loans.
Larger Down Payments: Typically requires a down payment of 10% to 20% or more, depending on the lender.
Higher Closing Costs: Due to the larger loan size, closing costs may be more significant than for smaller loans.
Loan Limits by Region: The conforming loan limit varies by area, so what qualifies as a jumbo loan depends on the property location.
Market Sensitivity: Jumbo loans can have stricter lending guidelines in fluctuating markets.

Jumbo Loan Qualifying

Renovation loans follow the guidelines of the underlying loan program:

Credit Score: A strong credit score, usually 700 or higher, is required for approval.
Debt-to-Income Ratio (DTI): Lenders typically require a DTI below 43%, though exceptions may be made for borrowers with significant assets.
Down Payment: A larger down payment of 10% to 20% is generally required, though some programs may allow less with strong qualifications.
Income Documentation: Borrowers must provide detailed documentation, including tax returns, W-2s, and bank statements.
Cash Reserves: Lenders may require six months to a year of cash reserves to cover mortgage payments.

Jumbo loans open the door to financing high-value properties with flexible and tailored solutions. If you’re considering a jumbo loan for your next home purchase or refinance, contact us today to discuss your options and take the first step toward securing your dream property. Reach out to our team at (210) 987-8943. We are happy to answer your questions and would love to work with you!

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

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