Jumbo Loans

Jumbo Loans

Jumbo Loans are typically used to buy more expensive homes and high-end custom construction homes. They Typically require a higher down payment than traditional loans and lending guidelines are stricter.


A Jumbo Loans exceeds the maximum loan amounts established by Fannie Mae and Freddie Mac conventional loan limits. Rates on jumbo loans are typically higher than conforming loans.

Jumbo mortgages and conforming home loans have many similarities, but there are some key differences to be aware of, including the amount of down payment, cash reserves and credit score you’ll need to qualify.

Qualifying for a Jumbo loan

Underwriting criteria for jumbo loans are stricter because the loans are larger and riskier for lenders.


Most lenders require your FICO score to be higher than 700, and sometimes as high as 720 for a Jumbo Loan. Some lenders go as low as 680, but that’s usually the minimum unless you are using Non-QM financing.


Jumbo loan borrowers may need to show they have enough cash reserves to cover 6 months to one year of mortgage payments.


To prove your financial health, you’ll need extensive documentation, perhaps more than for a conforming loan. You should be prepared to hand over your full tax returns, W-2s and 1099s when applying, in addition to bank statements and information on any investment accounts.


Some lenders may require a second appraisal of the home you’re planning to purchase.

How can we help?

With Barbara Kenton at Allianz Mortgage Service, I know all about Jumbo Loans and how to qualify you for either a Purchase or Refinance.

If you are located in the Los Angeles, Orange County, San Bernardino, Riverside County area,  or anywhere in California, contact us today to get started.