You can use a jumbo loan to purchase a variety of property types, including a vacation home, investment property or primary residence.
For more specific answers to your personal questions, talk to one of our Loan Originators.
Interest rates for jumbo loans are competitive with the rates for conventional loans. Your interest rate will vary based on your financial situation, the area in which you’re buying, the property being purchased and the specific loan program.
Some lenders will bump up the interest rate a few points to accommodate the greater risk of the larger loan.
The limit on a jumbo loan is as high as three million dollars!
Mortgages have a limit on the max amount you can borrow for a given property. For conventional loans, also called conforming loans, that limit maxes out at a little over $500,000 in most areas. Jumbo loans have much higher limits and are designed for high-value properties.
Jumbo loans generally have more strict qualification requirements than conforming loans, but lenders do have some flexibility.
You need a credit score of at least 600 to qualify for a jumbo loan. Debt-to-income ratio requirements vary depending on home value, but in many cases your DTI needs to be below 38% to qualify for a jumbo loan.
You’ll also need proof of a strong financial history. This means when you apply, you’ll need copies of your bank statements and investment accounts. You’ll also need to provide your full tax return from the most recent year and other income and tax documents like your 1099s and W2s.
Having a large amount of cash available may also improve your chances of qualifying for a jumbo loan.