What Are Jumbo Loans?

Jumbo loans are non-conforming mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. These loans are designed to provide financing for luxury homes or high-value properties in competitive markets. Because they represent a higher risk to lenders, jumbo loans often come with stricter qualification criteria, ensuring that borrowers can comfortably manage the larger loan amounts.

Why Choose a Jumbo Loan?

• High Loan Amounts: Perfect for luxury homes or properties in high-cost areas.
• Flexible Loan Terms: Choose between fixed or adjustable rates.
• Competitive Rates for Qualified Borrowers: Borrowers with strong credit and financial profiles can secure favorable terms.

Eligibility Requirements

• Credit score of 700 or higher is typically required.
• Debt-to-income ratio below 43%.
• Significant cash reserves may be necessary.
• Larger down payment (usually 10-20%).