A jumbo mortgage is a home loan that exceeds the conforming loan limits established by the Federal Housing Finance Agency (FHFA). Because these loans are larger than the limits for mortgages eligible for purchase by Fannie Mae and Freddie Mac, they are considered non-conforming loans and typically have different qualification requirements.
GuardHill Financial offers a wide range of jumbo mortgage options for borrowers purchasing or refinancing high-value properties.
How Is a Jumbo Mortgage Different From a Conventional Mortgage?
Because jumbo mortgages involve larger loan amounts, lenders typically apply stricter underwriting guidelines than they would for a conventional conforming loan.
While requirements vary by program, jumbo borrowers may encounter:
- Lower Debt-to-Income (DTI) Ratios: Lenders may require borrowers to carry less monthly debt relative to their qualifying income.
- Higher Credit Score Requirements: Jumbo programs often require stronger FICO scores than conventional mortgage programs.
- Lower Loan-to-Value (LTV) Ratios: Borrowers may be required to make a larger down payment or maintain more equity in the property.
- Greater Reserve Requirements: Lenders may require borrowers to demonstrate that they have sufficient liquid assets remaining after closing.
- Additional Documentation: Larger loan amounts may require a more detailed review of a borrower’s income, assets, and overall financial profile.
The exact requirements depend on the loan amount, property, borrower qualifications, and specific jumbo mortgage program.
Jumbo Mortgage Options
Jumbo financing may be available for a variety of transactions and property types, including:
- Primary residences
- Second homes
- Single-family homes
- Condominiums
- Co-ops
- Purchase transactions
- Rate-and-term refinances
- Cash-out refinances
Both fixed-rate and adjustable-rate (ARM) jumbo mortgage options may be available depending on the program.
Why Work With GuardHill for a Jumbo Mortgage?
Jumbo lending is not one-size-fits-all. Guidelines can vary significantly between lenders, particularly when it comes to loan amounts, DTI, FICO scores, LTV, reserves, and property requirements.
With more than three decades of mortgage financing experience, GuardHill works with a broad network of lending sources and offers access to a variety of jumbo mortgage programs.
Our experienced mortgage professionals can review your complete financial profile and help identify a jumbo financing solution that fits your needs.
Frequently Asked Questions About Jumbo Mortgages
What is considered a jumbo mortgage?
A mortgage is generally considered jumbo when the loan amount exceeds the applicable conforming loan limit established by the FHFA. These limits can vary by location and are updated periodically.
Are jumbo mortgage guidelines stricter than conventional loans?
Generally, yes. Because jumbo loans involve larger loan amounts, lenders may have stricter requirements for DTI, FICO scores, LTV, cash reserves, and documentation. However, guidelines vary between jumbo programs.
Do jumbo loans require a larger down payment?
They can. Jumbo loans may have lower maximum LTV ratios than conventional loans, which can result in a larger down payment requirement. The maximum LTV depends on the loan amount, property, and borrower qualifications.
What credit score do I need for a jumbo mortgage?
Credit score requirements vary by program. Jumbo lenders generally look for strong credit profiles, and certain loan amounts or LTVs may require higher FICO scores.
Can I refinance with a jumbo mortgage?
Yes. Jumbo mortgages may be used for both rate-and-term and cash-out refinances, subject to the applicable program requirements.
Are jumbo loans available for condos and co-ops?
Yes. Jumbo financing may be available for condominiums and co-ops, subject to borrower, property, and program requirements.
Explore Your Jumbo Mortgage Options
Jumbo mortgage guidelines can vary significantly from one program to another. GuardHill’s mortgage professionals can review your loan amount, income, assets, credit profile, and property to help determine which jumbo financing options may be available to you.
Contact GuardHill Financial today to discuss your jumbo mortgage options.
All loans are subject to credit and property approval. Program availability, rates, terms, documentation requirements, loan-to-value limits, and eligibility are subject to change and may vary based on borrower and property qualifications.
