Jumbo Loans

A jumbo loan is used to finance properties that exceed the allowed loan limits of a conventional conforming loan. The maximum amounts allowed for conforming loan changes annually and vary by county.  The Federal Housing Finance Agency (FHFA) determines this mortgage loan amount.

Credit score

To qualify for a jumbo loan, lenders may require your FICO score to be higher than 680.

Debt-to-income ratio

Lenders will consider your debt-to-income ratio (DTI) to ensure you don’t become over-leveraged.  PMI is not assessed on Jumbo loans.

Max Loan Amount is $3 Million.

Partnerships for loan sizes above 3 million can be considered in a case-by-case scenario.

Documentation

Be prepared to provide your complete tax returns, W-2s, and 1099s when applying, in addition to bank statements and information on any investment accounts to show credit and income health.

Appraisals

Some lenders may require a second home appraisal and use the average of the two estimates for the home value.