A jumbo loan is a home loan larger than the conforming limit set each year for the county; because the agencies do not buy it, each jumbo program writes its own rules. Here is what jumbo programs look for, how interest-only and large loan amounts work, and what to gather.
Prefer to talk? Call 732-686-9999
Pick the one closest to you. A few short questions follow, and a licensed loan officer gets back to you.
Get a quoteReady for the full application? Apply online
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Fannie Mae and Freddie Mac buy most home loans, up to a limit set each year for each county and number of units. A loan above that limit is a jumbo loan. Because the agencies do not buy it, each jumbo program writes its own rules.
Each program sets its own rules for the down payment, credit and the savings you keep after closing, and the rules tighten as the loan grows. Most programs ask for full income documents, and larger loans may need two appraisals.
Jumbo programs do not charge mortgage insurance, whatever the loan-to-value. Loans can be fixed or adjustable, for a main home, a second home and, in several programs, a rental property.
Which option fits depends on the size of the loan, the home and how you document income. Physicians and dentists have a dedicated program of their own: see Doctor and dentist loans.
A fixed rate keeps principal and interest the same for the life of the loan, usually fifteen or thirty years. An adjustable rate is fixed for a set number of years, often five, seven or ten, and then can change, so the payment can rise.
How adjustable rates workSome programs offer an interest-only period at the start, often ten years. When it ends, the payment rises to repay the balance over the rest of the loan, and it can be much higher. Plan on the higher payment, not the interest-only one.
Loans up to ten million dollars are possible in one program, at a low loan-to-value with the most equity; most programs stop lower. The largest loans need the most equity and the most savings after closing and, often, two appraisals.
Some lenders keep loans on their own books and set their own rules. That can help with homes and borrowers other jumbo programs turn down, such as some condominiums and co-ops. These loans are adjustable: the rate is fixed for a set number of years and then can change every year, so the payment can rise. Income, assets and credit are still fully documented.
Permanent residents and most work-visa holders can use the regular jumbo programs. A buyer who lives outside the United States may be able to finance a second home or a rental property at jumbo sizes through a portfolio adjustable-rate loan, with income and assets documented and a larger down payment.
Foreign national loans on a rental propertyIf your tax returns do not show your real income, there are programs that look at bank statements or assets instead. They have their own rules; ask a loan officer whether one fits.
Alternative documentation loansThe price range, the down payment, the kind of home, and whether you will live in it, use it as a second home or rent it out.
Pay stubs and W-2s, or personal and business tax returns if you are self-employed, plus statements for the down payment, closing costs and savings.
One appraisal, or two from different appraisers on larger loans. Jumbo loans do not use appraisal waivers.
An underwriter checks the file against the program’s rules. You review your closing disclosure and sign.
Most jumbo programs document income in full; some accept bank statements or asset-based income instead. Most borrowers can start with these.
Compare the loan amount, not the price, with the conforming limit for the county and the number of units. The limit changes each year, and it is higher in high-cost counties. A loan officer can check it for your address.
It depends on the program, the size of the loan and the kind of home. The larger the loan, the larger the down payment programs ask for. A loan officer can compare programs for your price range.
Without an agency behind the loan, programs want to see that you could keep making payments through a rough patch. The amount grows with the size of the loan; some programs follow the automated underwriting system’s figure on smaller jumbo loans.
Yes. Some programs cap the loan size for a first-time buyer or ask for a larger down payment; one follows the automated underwriting result with no extra limit. A loan officer can tell you which programs fit.
In most programs, yes, usually with some of your own money alongside the gift. One program allows a fully gifted down payment on a smaller loan-to-value.
In some cases, for a second home or a rental property, through a portfolio adjustable-rate loan. Expect a larger down payment and full documents for your income and assets. Ask a loan officer whether your situation fits.
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999.
Sources: Federal Housing Finance Agency, FHFA conforming loan limits (opens in a new tab). Facts are stated in our own words.
Get a quote, apply online, or talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.