Questions about Jumbo Loans?

General Questions about Jumbo Loans

What is the difference between a Jumbo Loan and a non-jumbo loan?
Jumbo loans and conforming loans both offer unique benefits to you and come with their own set of qualification requirements.

The biggest differences between a Jumbo Mortgage Loan and a conforming mortgage is the limit for each loan.  Conforming loan limits change from year-to-year depending on the average price of a home in the U.S.  Ask your loan officer about current limits. Jumbo Loans offer a limit much higher than that placed on conforming loans.

Are underwriting requirements for Jumbo Loans more restrictive?
The underwriting or approval requirements for a Jumbo Loan are more restrictive which means it can be more challenging to qualify. You’ll need an excellent credit score, low debt-to-income ratio, several months of cash reserves, stable income and a moderate debt-to-income ratio, and finally, a larger down payment.

Jumbo Loan Process

How does applying for a Jumbo Loan differ from applying for a conventional mortgage loan?
The requirements for approval are stricter for Jumbo Loans. You’ll need excellent credit, a large down payment, and a low debt-to-income ratio. Conventional mortgage loans generally feature more flexible requirements. Contact a loan officer for more information.

What are the down payment requirements for Jumbo Loans?
While it can depend on a number of factors, down payment requirements can be higher for Jumbo Loans. Contact a loan officer for more information.

Are the closing costs for Jumbo Loans more than conforming loans?
Closing costs for Jumbo Loans are slightly higher than conforming loans.  Contact your loan officer for more details.

Adjustable Rate vs Fixed Rate Mortgages

Are jumbo loans adjustable-rate or fixed-rate mortgages?
Like other mortgages, Jumbo Loans come in the form of both adjustable and fixed Rates. Those rates are often slightly higher than their conforming counterpart.