Who it fits
Buyers and homeowners who need to borrow more than the annual conforming loan limit set by the Federal Housing Finance Agency for their county.
What to expect
- Higher credit score requirements, often 700 or more
- Larger down payments, commonly 10% to 20%
- Cash reserves covering several months of payments
- Full documentation of income and assets
Jumbo pricing varies widely between investors, so shopping several of them matters more than with conforming loans.
Questions
Are jumbo rates always higher?
Not always. Depending on the market, jumbo rates can be close to or even below conforming rates for strong borrowers.