Jumbo loans are the next step up from conventional loans, typically used when the purchase price of a home exceeds Fannie Mae and Freddie Mac guidelines. Jumbo loans are available with either fixed or adjustable interest rates, as well as a variety of repayment lengths to fit your goals. These loans are not backed by government entities (USDA, VA, FHA).

Like conventional loans, jumbo loans carry requirements for debt-to-income ratios, down payments, and credit scores, as well as reserve funds. With a jumbo loan, however, these requirements tend to be more strict since you are borrowing a larger amount of money. Each borrower’s situation is different, and only a qualified mortgage professional can tell you if you qualify for a jumbo loan or if it is the right product for you. In some cases, splitting the amount you need to borrow between two loans may be a better option. The easiest way to know if a jumbo loan is right for you is to ask!

Yes – if your down payment is less than 20% of the home’s purchase price, you will be required to have private mortgage insurance (PMI), which ranges from 0.4%-1.2% of the loan amount and is paid monthly.