Jumbo Loans Processing

A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, it is not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac.

The process for applying for a jumbo loan is similar to other types of loans. However, because they are larger and non-conforming, requirements can be stricter. This may include higher credit score requirements, larger down payments, and thorough documentation of income and assets.

Interest rates on jumbo loans vary based on market conditions, your creditworthiness and the lenders policies. Generally speaking though, interest rates for jumbo loans tend to be slightly higher than those for conforming mortgage loans due to their increased risk.

Yes, most lenders offer both fixed-rate and adjustable-rate options for Jumbo Loans. However, specific terms and conditions will depend upon individual lender policy and borrower eligibility.

Yes, given the large amount being borrowed in a Jumbo Loan transaction; lenders often have stricter criteria including higher credit scores (usually 700+), lower debt-to-income ratios (typically no more than 43%), proof of significant assets (up to 12 months worth of reserves) and an appraisal confirming the value of the property.