Go Big and Go Home with a Jumbo Loan

You wouldn’t put a limit on your dreams. Why put one on your dream home? When you need financing that exceeds the current conforming limit of $766,550, a jumbo loan may be the perfect solution for you. With both fixed and adjustable-rate options, jumbo mortgages offer flexible down payment choices, enabling you to secure the property you've always envisioned or refinance your existing mortgage. A jumbo loan embraces the unique financial requirements of more expansive properties and provides the necessary resources to turn your dream into reality. By accommodating larger loan amounts and offering borrower-friendly terms, a jumbo mortgage can be the key to unlocking the door to a luxurious and comfortable home that reflects your aspirations and achievements.

Want to learn more? Let’s take a closer look.

Pre-qualify Contact a loan officer
Jumbo Loans

What is a Jumbo loan?

Jumbo mortgage loans are home loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored entities that buy and sell mortgage loans on the secondary market. In most areas of the United States, the conforming loan limit is $766,550 ($1,149,825 for one unit in High-Cost Areas). Jumbo loans are used to finance higher-priced properties, such as luxury homes, and can be up to several million dollars.

A jumbo loan embraces the unique financial requirements of more expansive properties and provides the necessary resources to turn your dream into reality. By accommodating larger loan amounts and offering borrower-friendly terms, a jumbo mortgage can be the key to unlocking the door to a luxurious and comfortable home that reflects your aspirations and achievements.

Check out the loan guidelines, pros and cons for Jumbo loans below.

General Jumbo Loan Features and Guidelines:

  • Up to 90% LTV w/ no mortgage insurance
     
  • Credit scores as low as 640 allowed
     
  • Typically less restrictive than traditional banks
     
  • Non-warrantable condos allowed
     
  • Low reserve requirements available
     
  • Flexible income qualification
     
  • Gift funds accepted
     
  • Primary, secondary, and investment properties


Pre-qualify

Pros of Jumbo Mortgage Loans:

  1. Higher loan amounts:
    Jumbo loans allow borrowers to finance more expensive properties or homes in high-cost areas that exceed conforming loan limits.
     
  2. Flexibility in loan terms:
    Jumbo loans offer both fixed and adjustable-rate options, giving borrowers a choice to select the best terms for their financial situation.
     
  3. Customized underwriting:
    Jumbo loans often feature more personalized underwriting, which can cater to the unique financial circumstances of high-net-worth borrowers.
     
  4. Potentially lower interest rates:
    Depending on market conditions and borrower qualifications, jumbo loan interest rates can sometimes be lower than those of conventional loans.

 

Cons of Jumbo Mortgage Loans:

  1. Stricter requirements:
    Jumbo loans often have stricter credit, income, and down payment requirements compared to conventional loans, making it more challenging for some borrowers to qualify.
     
  2. Higher down payments:
    Jumbo loans typically require a larger down payment, usually 20% of the purchase price; however, DRMC does offer options as low as 5%.
     
  3. Limited availability:
    Not all lenders offer jumbo loans, potentially limiting the borrower's choice of financing options.
     
  4. Higher closing costs:
    Due to the larger loan amounts, jumbo loans may come with higher closing costs compared to conventional mortgages.

 

Good candidates for Jumbo Mortgage Loans:

  1. Homebuyers seeking to purchase luxury properties or homes in high-cost areas that exceed conforming loan limits
     
  2. Borrowers with strong credit profiles, stable income, and a sizeable down payment
     
  3. High-net-worth individuals with unique financial situations or more complex income sources
     
  4. Homeowners looking to refinance an existing jumbo mortgage to take advantage of lower interest rates or better loan terms

Contact one of our knowledgeable loan specialists who can help guide you through our extensive suite of loan products for a mortgage solution tailored to meet your specific needs.