Jumbo Loans: Your Go-To Mortgage for High-Value Homes
In this guide, we’ll explain what a jumbo loan is, how it compares to a conventional loan, who it’s best for, and how to qualify if you're purchasing or refinancing a high-value property above local loan limits.
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What is a Jumbo Loan?
- Flexible financing for high-value properties
- Loan amounts above the conforming limits (over $766,550 in most areas)
- Competitive interest rates and fixed or ARM options
- No private mortgage insurance (PMI) on most programs
Quick Answer
Jumbo loans allow qualified buyers to borrow more than the conforming loan limit in their area. They are ideal for high-priced homes that require financing beyond what conventional loans allow.
Why Consider a Jumbo Loan
Here’s why borrowers might consider a jumbo loan
Buy in Competitive or High-Cost Markets
Homes in areas such as California, New York, or major metropolitan areas often exceed conforming loan limits. Jumbo loans allow you to compete confidently without depleting your cash reserves.
Finance a Primary, Second, or Investment Home
Jumbo loans aren’t just for primary residences. They’re available for vacation homes, multi-unit properties, and even investment properties.
Keep More Cash on Hand
Instead of pulling from your portfolio or retirement to cover a large purchase, a jumbo loan gives you leverage while keeping assets liquid.
Pro Tip
The higher the loan amount, the more underwriting scrutiny you'll face. Strong credit, lower DTI, and larger cash reserves are key.
How to Qualify For a Jumbo Loan?
Loan Amount
More than $766,550 (or $1,149,825 in higher-cost areas)
Credit Score
680 FICO (720+ for the best rates)
Down Payment
10-20% (some programs may require more)
Debt-to-Income (DTI)
≤ 43% (varies based on borrower profile)
Cash Reserves
6-12 months of mortgage payments typically required
Property Types Allowed
Primary residences, second homes, or investment properties.
Compare Jumbo Loans vs. Conventional Loans
Jumbo Loan
Conventional Loan
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How to Apply for a Jumbo Loan
Connect with a UMortgage Loan Expert
We’ll ask about your income, assets, and property goals to determine jumbo loan eligibility.
Get Pre-Approved
Jumbo loans often require more documentation. We’ll help you gather income verification, asset statements, and credit information upfront.
Choose the Right Jumbo Loan Option
From fixed-rate to ARM options, we’ll guide you through competitive jumbo loan programs that fit your goals and risk tolerance.
Underwriting & Closing
Because jumbo loans aren’t backed by Fannie or Freddie, underwriting is more detailed—but we’ll guide you through it all, from appraisal to close.
Frequently Asked Questions
Wondering if a jumbo loan makes sense to you? Get clear, expert answers to the most common questions regarding cost, timing, benefits, and more!
Here's Why UMortgage is Your Best Choice
Relationships, Not Transactions
We’re here for more than just your mortgage. We’ll stick with you beyond closing to help you gain financial freedom through homeownership.
Local & Nationwide Expertise
With licensed loan officers across the country and deep knowledge of your local market, we’ll help you buy with confidence anywhere you call home.
Fast, Transparent Closings
We communicate with you every step of the homebuying or refinance process so you can close quickly without any hidden fees or surprises.