Jumbo Mortgage Loans
A jumbo mortgage is the type of loan you’ll need to get if the property you want to purchase exceeds conforming limits. The conforming limit in 2021 for most areas of the country is $548,250.
Jumbo loans will finance most property types, including single-family homes, condominiums, townhomes, and multi-family units.
For any jumbo loan, you’ll need excellent credit and a high income.
Property Types & Down Payments
Jumbo rates will be the lowest for a home you’ll live in as your primary residence. If you’re looking for a jumbo loan for an investment property – you’ll pay the highest rates.
A single-family home gets the best rate.
Rates for condominiums are some of the highest
Investment property rates are also higher.
So, if you’re shopping for a condo investment property – expect high rates.
Other Things to Know About Jumbo Home Loans
If you are shopping for higher-priced homes, you’ll need to be prepared when it comes to applying for a jumbo loan. Here’s what to know:
- Stronger credit. You’ll need at least a 700 score. The higher, the better. For the best rates, you’ll need 740+.
- Reserves. You’ll need more money in the bank.
- Bigger down payment. Your required down payment amount will depend on your credit, occupancy, and property type.
- Second appraisal. You might have to get more than one appraisal.
- Higher rates. Jumbo loan rates tend to be higher.
Jumbo Loan Alternative
If you’re a veteran or service member, a VA loan could be a great option. But, you will have the VA funding fee, which can add up.
Homestead is a top lender of Jumbo loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!
- Jayson Hardie on GrowthGet a Free Quote →