What You Need to Know Before Applying for a Jumbo Loan
Buying a luxury home or high-value property often means needing a loan that exceeds traditional lending limits. That’s where jumbo loans come in—a powerful option for borrowers who want to finance larger homes with flexible terms and competitive rates.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the standard conforming loan limits set by Fannie Mae and Freddie Mac (around $766,550 in most areas for 2025). Because these loans fall outside government-backed limits, they’re considered “non-conforming” and are often used to purchase or refinance high-end homes, custom builds, or investment properties.
When a Jumbo Loan Makes Sense
If you’re buying a home in a high-cost area or want to finance a property that surpasses the conforming threshold, a jumbo loan lets you borrow more—without splitting your mortgage into multiple loans. They’re ideal for:
Luxury or custom-built homes
Second homes or vacation properties
Large or multi-unit investment properties
What Lenders Look For
Because jumbo loans involve larger sums of money, qualification standards are typically higher. You’ll need:
Strong credit (typically 700+ score)
A low debt-to-income ratio
A larger down payment (often 10–20% or more)
Verifiable income and assets to demonstrate repayment ability
Self-employed or high-net-worth borrowers may also qualify through alternative documentation or asset-based programs.
Benefits of a Jumbo Loan
Borrow beyond standard loan limits
Competitive interest rates and flexible terms
Financing available for primary, secondary, and investment homes
No private mortgage insurance (PMI) with sufficient down payment
Final Thoughts
Jumbo loans open doors to exceptional properties—but navigating the requirements can be complex. Working with an experienced loan officer ensures you understand your options, meet qualification standards, and secure the best financing for your goals.
At Chris Lewis. | Home Loans, we’ll help you make sense of jumbo financing and guide you through every step with clarity and confidence.