Jumbo Mortgage Loans
If you're shopping for a higher-priced home, a standard mortgage might not cover the full cost. That's where jumbo mortgage loans come in. These loans are designed for properties that exceed conforming loan limits set by government agencies like Fannie Mae and Freddie Mac. While the homebuying journey is mostly the same, qualifying for a jumbo loan often means meeting stricter financial requirements.
At Sirva Mortgage, we offer jumbo financing up to $3 million—helping you turn your dream home into a reality, even if it falls outside conventional price ranges.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the maximum loan limits for conforming loans, which are set by the Federal Housing Finance Agency (FHFA). In most areas, this means financing more than $806,500, though in some high-cost markets, the limit can go up to $1,209,750. Anything above those amounts is considered a jumbo or non-conforming loan.
Because these loans aren’t backed by Fannie Mae or Freddie Mac, they carry more risk for lenders and may come with more detailed qualification requirements.
Is a Jumbo Loan Right for You?
A jumbo loan might be a great fit if:
A jumbo loan may not be ideal if you are still building your credit or savings, you plan to buy a home within conforming loan limits, or you want to qualify with a lower down payment and fewer qualifications.
How Jumbo Loans Work
Jumbo loans follow a similar structure to other mortgage types, but they typically require borrowers to meet stricter financial criteria due to their size and risk level. Here's what to expect:
Common terms associated with jumbo loans:
- Loan Limit: Any loan amount above $726,200 (or $1,089,300 in high-cost areas)
- Down Payment: Often 10-20% minimum
- Credit Score Requirement: Typically 700+ (and 740+ for some VA jumbo loans)
- Debt-to-Income Ratio (DTI): Lower DTI caps may apply
- Cash Reserves: Lenders may require proof of 6-12 months of expenses saved
- Appraisal Requirements: Loans over $1 million may require a second appraisal
| Loan Amount | Loan Type | Minimum Down Payment | Minimum Credit Score | Reserve Requirement |
|---|---|---|---|---|
| $900,000 | Jumbo Conventional | 10 - 20% | 700+ | 6 - 12 months of expenses |
| $1,200,000 | VA Jumbo (eligible) | 0% (with strict criteria) | 740+ | 6 - 8 months, depending on income |
| Loan Amount | $900,000 |
| Loan Type | Jumbo Conventional |
| Minimum Down Payment | 10 - 20% |
| Minimum Credit Score | 700+ |
| Reserve Requirement | 6 - 12 months of expenses |
| Loan Amount | $1,200,000 |
| Loan Type | VA Jumbo (eligible) |
| Minimum Down Payment | 0% (with strict criteria) |
| Minimum Credit Score | 740+ |
| Reserve Requirement | 6 - 8 months, depending on income |
What to Know About Jumbo Loans
Here's what sets jumbo loans apart in practice:
- Higher loan amounts: Perfect for luxury homes, large properties, or high-cost areas.
- More financial documentation: Lenders may require extra paperwork, especially if you’re self-employed or have complex income streams.
- Risk management by lenders: Since jumbo loans aren't backed by government agencies, lenders offset risk by requiring higher credit scores, more cash in the bank, and stricter DTI limits.
- Potential for multiple appraisals: Homes over $1 million in value may need a second appraisal to confirm fair market value.
Despite these extra steps, jumbo loans are a powerful way to purchase the home you truly want—especially when it falls outside the traditional lending box.
