Jumbo Loans

If your dream home is truly a sight to behold, a conventional loan may not be large enough to
finance it. If that’s the case, you need a jumbo loan to finance your luxury home purchase.
Jumbo loans are meant to finance luxurious properties or homes in expensive markets. Because
these loans are not guaranteed by Freddie Mac or Fannie May, they come with stricter requirements
for eligibility.

As of 2022, the conventional loan limit for a single-family home was $647,200. If you need a
mortgage larger than that, you’ll need to apply for a jumbo loan.
Requirements for obtaining a jumbo loan

? A credit score of 700 or higher
? Low debt-to-income ratio
? At least 10% down payment (20% to avoid private mortgage insurance)
? Ability to prove liquid assets and cash reserves

Jumbo loans aren’t as rare as they used to be

With the housing market in a powerful upswing for the past few years, more homebuyers than ever
are applying for jumbo loans in order to meet ever-increasing home prices. Just because this type of
mortgage is called a “jumbo loan” doesn’t mean it’s unusual.

Will I pay more in interest with a jumbo loan?

Historically, jumbo loans had higher interest rates than conventional loans. But this is no longer the
case. Today, jumbo loan interest rates are comparable to those of conventional loans.

Want to know more about jumbo loans?

Give us a call today. Our mortgage experts will be happy to answer all your questions and help you
finance your dream home, however big you can dream it.