Check your credit early
A strong credit history is necessary. Review your previous reports and fix any issues that may prevent approval before applying.
Jumbo Home Loan — financing for high-value properties
Flexible financing designed for luxury homes, competitive markets, and higher-priced properties.
What is a Jumbo Loan?
A Jumbo Loan is a type of home mortgage loan used to finance properties that exceed the maximum loan amount set by Fannie Mae and Freddie Mac. These loans are designed for buyers in markets where home prices are higher, or for borrowers purchasing luxury homes. Since Jumbo Loans are not backed by government-sponsored enterprises, they carry higher eligibility standards.
It's ideal for buying high-value properties in expensive or competitive housing markets.
It typically requires stricter underwriting, higher credit scores, and larger cash reserves.
It can be used for primary residences, second homes, or investment properties.
Benefits of a Jumbo Loan
Jumbo Loan make homeownership possible in areas where standard loan limits fall short. If you are purchasing a home that costs close to a million dollars and you don't have that much cash in your bank account, then a jumbo mortgage loan is a great option for you. You don't need to manage multiple mortgages to fulfill your loan requirement.
Higher Loan Limits
You have the option to borrow more than other loan caps allow, making luxury and high-demand properties accessible.
Single Mortgage Convenience
You can finance your full purchase price in one loan, rather than splitting into multiple mortgages.
Flexible Financing Options
Jumbo loans are available in both fixed-rate and adjustable-rate terms, giving you control over repayment.
Potentially Competitive Rates
With strong credit and income, borrowers may secure rates close to or even comparable with conforming loan.
Versatility
A jumbo loan can help you buy a primary home, vacation spot, or investment property.
Types of Jumbo Loans
Different borrowers have different needs, financing plans, or goals for larger properties. With a variety of options available, it allows borrowers flexibility depending on the loan type and financing goal. Common types of Jumbo Loans include:
Fixed-Rate Jumbo Loan :
It offers stability with predictable monthly payments over the life of the loan.
Adjustable-Rate Jumbo Loan (ARM) :
ARM Jumbo Loan starts with a lower intro rate that adjusts after a set time.
Jumbo Cash-Out Refinance :
Jumbo Loan borrowers can use home equity for big debt consolidation, or investments.
Interest-Only Jumbo Loan :
It offers lower initial payments by covering interest for a set time before full payments start.
Jumbo Investment Property Loan :
This loan is specially designed for buying properties that generate income.
Jumbo Loan Requirements
Jumbo loans are larger and carry more risk for the lender, the requirements to qualify are usually a bit tougher compared to regular conventional loans. We want to make sure borrowers have strong credit, solid income, and a stable financial history.
Credit Score
We prefer a credit score of above 680. Some may allow a lower score if you have a steady income or solid savings.
Down Payment
Usually, we ask for a down payment of 10–20% or more, depending on the property and your overall financial profile.
Income & Documentation
We usually require detailed income verification, tax returns, and proof of assets to confirm financial stability.
Debt-to-income (DTI)
We want a debt-to-income (DTI) ratio of 43% or less, though some may allow higher with other solid factors.
Reserves
Rize Mortgage asks for a few months of cash reserves to cover payments and show you’re financially prepared for unexpected costs.
Property Appraisal
For luxury or high-value properties, we may require multiple appraisals to ensure the home’s fair market value is accurately verified.
How to Apply for a Jumbo Loan
The process of applying for a Jumbo Loan is simple, with a few steps. Before applying, make sure your finances are in order. We look for a strong credit score, stable income, and a healthy debt-to-income ratio.
Pre-Qualify for a Jumbo Loan :
Get an early estimate of your eligibility, loan amount, and payment range.
Jumbo Loan Pre-Approval :
Submit income, credit, and asset documentation so we can issue a pre-approval letter.
Property Search & Offer :
Look for homes beyond conforming limits. Having pre-approval helps you get a loan quickly.
Underwriting :
We review and verify your financial and property details to ensure everything meets guidelines.
Closing :
Review the terms, finalize your loan, and pay down payment and closing costs.
Tips for a Smooth Jumbo Loan Experience
1
Build reserves
Savings and assets not only improve approval chances but also provide peace of mind.
2
Limit new debts
Avoid large purchases or new credit accounts during the loan process.
3
Work with Rize Mortgage
Not all lenders are comfortable with high-value loans, choose one like Rize Mortgage with proven experience.
4
Get pre-approval before house hunting
In luxury and competitive markets, a Jumbo pre-approval letter helps you stand out.
5
FAQ (Frequently Asked Questions)
What are Jumbo Loan Rates?
Jumbo loan rates are typically slightly higher than conventional mortgage rates because these loans exceed conforming loan limits and carry more risk for lenders. Rates vary based on credit score, down payment, loan amount, and market conditions. Jumbo loans often have fixed-rate or adjustable-rate options, and borrowers with excellent credit can still secure competitive rates.
Do Jumbo Loans Need PMI?
Jumbo loans usually do not require private mortgage insurance (PMI), but lenders may require a larger down payment or higher credit score instead. Unlike conventional loans, jumbo loans are considered non-conforming and are assessed individually. Lenders often require 10–20% down and strong credit to mitigate risk. While there’s no PMI, higher upfront costs and stricter eligibility standards are common.
How Does a Jumbo Loan Work?
A jumbo loan works like a conventional mortgage but is designed for loan amounts above the conforming limits set by Fannie Mae and Freddie Mac. Borrowers repay the loan in monthly installments with interest over a set term, usually 15–30 years. Jumbo loans can have fixed or adjustable interest rates and require stricter underwriting due to the higher loan amount.
What's the Minimum Down Payment for a Jumbo Loan?
The minimum down payment for a jumbo loan typically ranges from 10% to 20%, depending on the lender and borrower profile. Higher credit scores and lower debt-to-income ratios can sometimes allow for lower down payments, but jumbo loans generally require more upfront capital than conventional loans. A larger down payment reduces monthly payments and may help secure better interest rates.
How to Check Jumbo Loan Eligibility?
To check jumbo loan eligibility, contact a lender or mortgage broker to review your income, credit score, assets, and debt-to-income ratio. Lenders assess whether you meet the stricter underwriting requirements for jumbo loans, which often include high credit scores, significant savings, and a stable income. Pre-approval with Rize Mortgage can give a clear picture of how much you can borrow and improve your bargaining power when purchasing a high-value home.
Ready to Finance Your Dream Home?
Whether you’re buying a luxury property, upgrading to a larger residence, or investing in a second home, a Jumbo Loan may be the right fit for you.
