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Jumbo Loan FAQs

We’ve compiled answers to your most asked questions about Jumbo Loans so you can learn how to go big AND go home.


What is a Jumbo Loan?

Jumbo loans are mortgages specifically designed for high-value properties. Conventional loans top out between $510,400 and $765,600 depending on the county. If you need a mortgage for something more expensive than the conventional loans in your area can cover, you need a jumbo loan.


Why consider a Jumbo Loan?

  • You’re shopping for higher-priced properties.

  • You have good credit, consistent income, and little debt.

  • You’re a high-income earner with additional assets.

  • You’re looking to buy an investment property.


How do I qualify for a Jumbo Loan?

You need a credit score of at least 600 and a debt-to-income ratio (DTI) typically lower than 43%, depending on the value of the property.


Along with the minimum requirements above, you’ll need proof of a strong financial history. This means when applying, you’ll need copies (often digital copies) of your bank statements and investment accounts. You’ll also need to provide your full tax return from the most recent year and other income and tax documents like your 1099s and W2s.


Having a large amount of cash available may also improve your chances of qualifying for a jumbo loan.


What’s the difference between a Jumbo Loan and a Conforming Loan?

Mortgages have a limit on the max amount you can borrow for a given property. For conventional loans, also called conforming loans, that limit maxes out at a little over $500,000 in most areas. Jumbo loans have much higher limits and are designed for high-value properties.


Jumbo loans generally have more strict qualification requirements than conforming loans, but lenders do have some flexibility.


What are the limits of a Jumbo Loan?

The limit on a jumbo loan is as high as three million dollars.


What are the interest rates on a Jumbo Loan?

Interest rates for jumbo loans are competitive with the rates for conventional loans. Your interest rate will vary based on your financial situation, the area in which you’re buying, the property being purchased, and the specific loan program.


Some lenders will bump up the interest rate a few points to accommodate the greater risk of the larger loan.


What kinds of homes can I purchase with a Jumbo Loan?

You can use a jumbo loan to purchase a variety of property types, including a vacation home, investment property, or primary residence.



For more specific answers to your personal questions, talk to one of our local Loan Originators.



* Limited availability in some areas. With an interest-only mortgage payment, you will not pay down the loan’s principal balance during the interest-only period. Once the interest-only period ends, your payments will significantly increase to pay back the loan’s principal and interest.


Original blog post by Primary Residential Mortgage, Inc. https://www.primeres.com/about/blog/article/2020/11/30/jumbo-loan-faqs


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