- 01. Who It's For
- 02. Benefits
- 03. Eligibility
Is a Jumbo Loan Right for Me?
A jumbo loan might be right for you if you’re looking for a loan that’s greater than your county’s conforming loan limit (which is different everywhere) – and you meet the eligibility requirements.
Jumbo Loan Eligibility Requirements
- A good credit score
- Typically, a deposit of 20% or higher
- Proof of ability to repay the loan
- Documentation of assets & lifestyle
Why are rates higher with jumbo mortgages?
The rates are typically higher with jumbo mortgages due to the higher level of risk associated with financing a larger property that may be more difficult to sell and recoup losses in the case of a default.
Where can I find my county’s conforming loan limit?
It’s publicly available online, and changes every year. Here is one good resource for current county conforming loan limits.
Why do I have to put down a 20% deposit?
Qualification requirements for jumbo loans are tougher and more conservative in order to mitigate the higher risk involved for the lender – there’s a big difference between lending one $3 million loan vs ten $300,000 loans. A larger deposit generally means a lower risk of default (as the borrower has put down more of their own cash).
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