Loan Options Guide

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Go Big AND Go Home: Move up to a jumbo loan

Loan Options Guide

Move Up to a Jumbo Loan

Do you wish to buy a higher priced home that exceeds the conventional loan limits set by the Federal Housing Finance Agency? If so, now is a good time to lean towards a jumbo mortgage because you need financing that is greater than the local conforming loan limit in your area.

A high-valued or luxury home whose purchase price exceeds the $647,200 conventional loan limit could be a good candidate for a jumbo loan. Jumbo loan is another name for a non-conforming mortgage. This means the jumbo loan does not “conform” to the guidelines of government-backed home mortgage loans.

Jumbo loans typically require a larger down payment than a conventional mortgage and you may need to pay extra closing costs to cover more fees or another property appraisal. Loan terms can vary by lender, but jumbo mortgages may have similar qualifying terms as a conforming loan. Lenders will still review your credit score, debt-to-income ratio, proof of income, and cash reserves that should cover at least one year of mortgage payments on your jumbo loan.

Jumbo Loan Advantages:

  • 30- and 15-year fixed rates 
  • Loans over $647,200 
  • Up to 80% LTV  
  • FICO score as low as 680 
  • No mortgage insurance required


Due to the size of jumbo loans and lack of federal-backed guarantees, you may be required to do more paperwork than you would for a conventional conforming loan. Even though the process could take longer to get a jumbo loan, hang in there! Lenders just want to be sure that you’re as serious as they are about you being able to make the monthly mortgage payments.


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