A home loan for an amount that exceeds conforming loan limits established by regulation is referred to as a jumbo loan.
There are 3,143 counties in the U.S., and 2,916 counties have a jumbo loan limit of $417,000. Some of the highest cost housing markets like L.A., N.Y.C. and San Francisco have higher limits of $625, 500.
The underwriting process for jumbo mortgages is similar to that of a conforming mortgage, except that jumbo lenders sometimes require 2 appraisals. Down payment requirements are also different in most cases, meaning the required down payment is greater, usually between 15% and 30%.
Jumbo loans also require excellent credit and a debt-to-income ratio of 43% or less with 6 to 12 months’ worth of money in reserves.
If you are looking for a jumbo loan and think you might qualify then give us a call and we can help.