FINANCING FOR HIGHER-VALUE HOMES
More Buying Power for Your Next Home
When the home you want requires financing beyond conventional conforming loan limits, a jumbo loan may provide the additional purchasing power you need. Jumbo financing is designed for higher loan amounts and can offer flexible options for qualified borrowers purchasing or refinancing higher-value properties.
JUMBO LOANS EXPLAINED
Financing Beyond Conforming Loan Limits
Jumbo loans are mortgage loans with amounts that exceed the conforming loan limits established for conventional mortgages. They are commonly used when financing higher-priced homes or properties in markets where the amount needed is above the applicable conforming loan limit.
Because jumbo loans are not purchased under the same conforming guidelines as standard conventional loans, qualification requirements can differ by lender and loan program. Credit, income, assets, reserves, debt-to-income ratio, property type, occupancy, and the requested loan amount may all play a role in determining available financing options.
Jumbo Loan Highlights
✓ Financing for loan amounts above applicable conforming loan limits
✓ Options may be available for primary residences, second homes, and certain investment properties
✓ Fixed-rate and adjustable-rate options may be available
✓ Loan structures and qualification requirements vary by lender and borrower profile
Jumbo loan programs, terms, loan limits, and eligibility requirements vary by lender, property location, property type, occupancy, loan amount, and borrower qualifications. Qualification may depend on credit, income, assets, reserves, debt-to-income ratio, down payment or available equity, appraisal, and other underwriting requirements. Jumbo loans may have different qualification standards and pricing than conforming conventional loans.
JUMBO LOAN OPTIONS
Flexible Financing for Higher Loan Amounts
Jumbo financing isn't one-size-fits-all. Depending on the lender, property, loan amount, occupancy, and borrower qualifications, different loan structures may be available to help finance a higher-value home.
Fixed-Rate Jumbo
A fixed-rate jumbo mortgage provides an interest rate that remains the same throughout the loan term, creating a consistent principal and interest payment.
Adjustable-Rate Jumbo
An adjustable-rate mortgage (ARM) may offer an initial fixed-rate period followed by periodic rate adjustments based on the terms of the loan.
Jumbo Purchase
Jumbo financing may be used to purchase a higher-priced primary residence, second home, or certain investment properties when the required loan amount exceeds applicable conforming limits.
Jumbo Refinance
Qualified homeowners may be able to refinance an existing higher-balance mortgage to restructure the loan term, change the loan type, or pursue other financial goals.
Jumbo Cash-Out
Depending on available equity and program requirements, certain jumbo refinance programs may allow qualified homeowners to access a portion of their home's equity.
Flexible Property Options
Depending on the program, jumbo financing may be available for a variety of higher-value properties and occupancy types, subject to lender and underwriting requirements.
THE JUMBO LOAN ROADMAP
Your Path to Jumbo Financing
Jumbo financing can involve additional documentation and underwriting considerations compared with a conforming mortgage. Understanding the process ahead of time can help you prepare for each step from application through closing.
STEP 1
Review Your Financing Goals
We'll discuss the property, desired loan amount, occupancy, down payment, and what you want your financing to accomplish.
STEP 2
Review Your Qualifications
Income, credit, assets, reserves, existing debts, and other financial information are reviewed to determine which jumbo options may fit your situation.
STEP 3
Select A Loan Option
We'll explore available jumbo programs and loan structures based on your qualifications, property, financing needs, and goals.
STEP 4
Underwriting & Appraisal
Your loan documentation and property are reviewed. Depending on the loan amount, property, and program, additional documentation or appraisal requirements may apply.
STEP 5
Final Approval & Closing
Once underwriting requirements are satisfied and the loan receives final approval, you'll review and complete the required closing documents.
WHAT YOU'LL NEED
Preparing for Jumbo Financing
Jumbo loans may require a more detailed financial review because of the larger loan amounts involved. Documentation requirements vary by lender and program, but being prepared with your financial and property information can help make the process more efficient.
Income & Employment
Be prepared to provide documentation of your income and employment, which may include pay stubs, W-2s, tax returns, or other income documentation depending on how you earn your income.
Assets & Reserves
Bank, investment, and other asset statements may be needed to document funds for the transaction and any reserve requirements associated with the jumbo loan program.
Credit & Obligations
Your credit history and existing financial obligations will be reviewed as part of determining qualification and the jumbo financing options that may be available.
Property & Appraisal
Information about the property will be reviewed, and an appraisal will generally be required. Depending on the loan amount, property, and program, additional property or appraisal requirements may apply.
READY TO EXPLORE JUMBO FINANCING?
Let’s Find the Right Financing for Your Next Home
Financing a higher-value home can come with different options and qualification requirements. Let’s review your goals, the property, and your financial picture to explore the jumbo loan options that may be available to you.
