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Backyard of an expensive home with an in-ground pool.

What is a Jumbo Loan?

Jumbo Loans, also known as non-conforming conventional mortgages, are for homes exceeding the value of Conventional Loans as established by the FHFA. (While these values can vary by state or even county, the current conforming loan limit for one-unit homes in most counties nationwide is $548,250). Predominantly used to finance homes in highly competitive real estate markets or luxury homes, Jumbo Loans are usually available with a fixed interest rate or an adjustable rate.

Who is eligible?

For homeowners looking into Jumbo Loans, credit requirements are a bit more rigorous than those for Conventional Loans, as well as requiring specific tax implications or underwriting obligations. While the average APR can often be on par with Conventional Loans, the down payments must be 10%-15% of the purchase price. Most significantly, approval for Jumbo Loans require an outstanding credit score, as well as a very low debt-to-income ratio (DTI).

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Who is eligible?

For homeowners looking into Jumbo Loans, credit requirements are a bit more rigorous than those for Conventional Loans, as well as requiring specific tax implications or underwriting obligations. While the average APR can often be on par with Conventional Loans, the down payments must be 10%-15% of the purchase price. Most significantly, approval for Jumbo Loans require an outstanding credit score, as well as a very low debt-to-income ratio (DTI).

What other loan types are available?

When it comes to loans, you have many more options than you think. Find out about some here:

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