Jumbo Loans, also known as non-conforming conventional mortgages, are for homes exceeding the value of Conventional Loans as established by the FHFA. (While these values can vary by state or even county, the current conforming loan limit for one-unit homes in most counties nationwide is $726,200). Predominantly used to finance homes in highly competitive real estate markets or luxury homes, Jumbo Loans are usually available with a fixed interest rate or an adjustable rate.
Jumbo Loans

What is a Jumbo Loan?
Who is eligible for lending?
For homeowners looking into Jumbo Loans, credit requirements are a bit more rigorous than those for Conventional Loans, as well as requiring specific tax implications or underwriting obligations. While the average APR can often be on par with a Conventional mortgage, the down payments must be 10%-15% of the purchase price. Most significantly, approval for a Jumbo Loan require an outstanding credit score, as well as a very low debt-to-income ratio (DTI).
Features
You get more compared to other mortgages
The main reason for a Jumbo home loan? You have the opportunity to access more money for a larger or more luxurious home.
Lower down payments, (maybe) lower rates
Unlike the typical 20% down that comes with a Conventional Loan, a Jumbo Loan can come with lower down payments (often 10%, though some may be as low as 5%). Also, as of late, interest rates for Jumbo Loans have fallen, sometimes lower than those of Conventional Loans.
Lots of mortgage options
A Jumbo Loan can give you flexibility in choosing the mortgage that works for you. How about an adjustable rate mortgage? Or maybe a 30-year fixed rate? With Jumbo Loans, you have options when it comes to your home.
Who is eligible for lending?
For homeowners looking into Jumbo Loans, credit requirements are a bit more rigorous than those for Conventional Loans, as well as requiring specific tax implications or underwriting obligations. While the average APR can often be on par with a Conventional mortgage, the down payments must be 10%-15% of the purchase price. Most significantly, approval for a Jumbo Loan require an outstanding credit score, as well as a very low debt-to-income ratio (DTI).