Jumbo Home Loan

What it is

A jumbo loan is any mortgage above the conforming loan limit for the county where the property sits. The Federal Housing Finance Agency sets the baseline one-unit limit each year, and designated high-cost counties carry a higher limit. Because both change, the only reliable answer for a specific purchase is the current figure for that county, published at fhfa.gov.

Jumbo loans are not purchased by Fannie Mae or Freddie Mac, so there is no single rulebook. Each lender or investor sets its own guidelines, which is why down payment, reserve, and documentation requirements vary far more than they do on conforming loans.

That variation is the reason a jumbo file is worth shopping. Portfolio lenders, private banks, and jumbo investors each hold different appetites for self-employment income, asset-based qualification, and larger loan sizes.

Who it fits

• Buyers of homes priced above the conforming limit for their county
• Borrowers with strong credit and substantial liquid reserves
• Move-up buyers and higher-price-band purchasers
• Cash-out refinance borrowers with high-value homes

How it runs

1. 1Pre-QualificationA detailed review of income, assets, credit, and reserves before you shop.
2. 2ApplyFull document review, with particular attention to reserves and debt-to-income.
3. 3UnderwritingManual jumbo underwriting. Jumbo files commonly take longer than conforming files because a person, not an automated engine, makes the decision.
4. 4CloseSign with a closing agent or an attorney, depending on the state.