A Jumbo Loan is a type of non-conforming mortgage loan that is not backed by the federal government and exceeds the conventional conforming loan limits set by the Federal Housing Finance Agency (FHFA). If you’re looking to finance a more expensive property or you live in a high-cost area, you may need a Jumbo Loan.
While anyone can apply for a Jumbo Loan, remember that the requirements may be stricter than the application requirements for a Conventional Loan, since you will be borrowing an amount higher than the conforming loan limit. To apply for a Jumbo Loan, applicants must meet the following requirements:
*Payment example: If you choose a $1,000,000, 30 year loan at a fixed rate of 3.15% (3.30% APR), you would make 360 monthly payments of $4,380.00. Payment stated does not include taxes and insurance, which will result in a higher payment.
Jumbo Loan Credit Score Requirements
In general, you should strive for a credit score of 680 or above when applying for a Jumbo Loan. However, borrowers who fall short of certain Jumbo Loan requirements should always check with us to explore other loan options.
Most of our Jumbo Loan options require down payments of 10.01% or above. Unlike conforming loans, Jumbo Loans rarely have low down payment options or down payment assistance.
Though Conventional Loans have more lenient DTI standards, Jumbo Loans typically have a maximum DTI of 43%. Your DTI is one way that lenders assess how you manage your finances. Your DTI is your total recurring monthly debts (student loans, credit card payments, etc.), divided by your monthly pre-tax income, expressed as a percentage. For example, if your rent is $1,000 per month, your car payment is $500 per month, and your monthly credit card payment is $800, your total monthly debt is $2,300. If your gross income is $6,000 per month, then your DTI is roughly 38% (2,300 ÷ 6,000 = 38.3).
Mortgage Insurance for Jumbo Loans
Mortgage insurance is typically not an option for most Jumbo Loans, which is another reason why their requirements are slightly higher.
Types of Jumbo Loans
We offer several different Jumbo Loan options with slightly different requirements:
Eligible properties vary per Jumbo Loan product, but in general, they can be a primary residence or second home, with certain jumbo products offering investment property financing as well. Though some products only offer financing for properties with 1-2 units, others will accept 1-4 unit-properties. For example, eligible properties for our Jumbo A Loan include single-family homes, PUDs, Condos, and 2-4 unit properties.
How to Apply for a Jumbo Loan
You apply for a Jumbo Loan just as you would apply for any other loan. To get started, you will want to gather the following:
If you have any questions, do not hesitate to call or text us at 480-452-5282
Monday - Saturday - 8:00am - 8:00pm
Sorry, Sunday is family funday :)
The Miller Team