Non-QM Loans :  1-858-997-9135
VA & Conv Loans :  1-855-537-6969
Non-QM Loans :  1-858-997-9135
VA & Conv Loans :  1-855-537-6969


Find Out if You Qualify

Larger Mortgage Amounts

Jumbo home loans are excellent for luxury home purchases which are typically more than the standard home in your community. Jumbo home loans are greater than the conventional conforming loan limits which disqualify them from traditional funding options.

The design of a jumbo home loan is for purchase or refinance of high value properties. In some cases, the requirements can be strict making them difficult to qualify for. A Plus Mortgage is aggressive in finding a fit for our borrowers giving competitive rates and flexible terms.

What is a Jumbo Loan?

A jumbo loan is a loan greater than the conventional loan limit set by the Federal Housing Finance Agency (FHFA). In 2021, any loan over $548,250 is considered a jumbo loan. Traditionally, jumbo mortgage rates are higher than standard conforming loans. These loans are typically not covered by government sponsored Fannie Mae Freddie Mac, thus making these loans riskier to provide. This loan does not conform to the guidelines of Freddie Mac or Fannie Mae.

Primary Residence

Second Home

Investment Properties

Jumbo Loans: Requirements and Qualifications

  • Credit Score: Typically, lenders look for strong and fiscally responsible borrowers. The minimum FICO score to be approved is 700 or higher.
  • Debt To Income: The debt-to-income ratio is the amount debt you owe in comparison to your income put into a percentage form. For example, if you owe $4,000 per month in debt and your monthly gross income is $10,000 per month, then your debt-to-income ratio is 40%. We have two programs one goes to 50% debt to income ratio and the other program to 55% debt-to-income.
  • Cash Reserves: We require 6 months reserves in checking, savings, or money market account. If investment account like a brokerage, we count 80% of the market value towards reserves.
  • Financial Health: We request your tax returns and other forms of income documentation to verify your reserves. For self-employed, we can use bank statements to get approval.
  • Property Appraisal: We will need to schedule appraisal of the home, based on the value of the appraisal will determine the final confirmed loan amount.
  • Down Payment: Minimum of 20% down payment is required for purchases. In some cases, we can do 10% down payment depending on the circumstance.
Jumbo Loans |
Jumbo Loans

Think you qualify for a jumbo loan? Find out, contact us today

Jumbo Loan Rates

Most jumbo loans are 15 year or 30 year fixed-rate mortgages. A fixed-rate mortgage is a loan with a long term usually 15 years or 30 years with a fixed interest rate over the life of the loan.

Jumbo Loan Benefits

  1. Borrow up to $4 million with 20% down payment.
  2. Faster turnaround times then traditional banks who currently are taking 60 to 120 days, we can close in 30 days.

What qualifies you for a jumbo loan?

To qualify for a jumbo-loan you need a minimum of a 700 FICO score with loan limit up to $1 million. For higher loan up amount up to $4,000,000 typically need a FICO score of 740 or higher.

Is a jumbo loan a bad idea?

Jumbo loans are also known as non-confirming conventional mortgages. Jumbo loans are typically riskier for banks/lenders because they are not guaranteed by Freddie and Fannie. This means the risk of loss is passed onto the borrower in the event of a default unlike traditional conventional mortgages that are guaranteed by Freddie and Fannie.

How much do you have to put as a down payment on a jumbo loan?

Generally, expect to put down at least 10% on your jumbo loan. Depending on your financial health and risk of the transaction some lenders may require up to 30% down payment. Although 20% down payment is a good mark, your lender would be the best person to talk about all options.

What are the disadvantages of a jumbo loan?

As discussed earlier, jumbo loans are riskier than traditional conventional mortgages because they are not guaranteed by Freddie and Fannie resulting in a higher interest rate to the borrower. The second disadvantage to a jumbo loan is tying up large sums of money for the down payment. Lastly, higher closing costs are usually involved due to the higher loan amount and origination fees.

Are jumbo loans harder to qualify for?

Jumbo loans exceed the federal loan limit resulting in higher risk to banks/lenders. Although competitive interest rates can be offered, jumbo loans are more difficult to qualify for.

What is the maximum debt to income ratio for a jumbo loan?

Most lenders will not allow more than 45% debt to income ratio, some Alt A paper lenders may go up to 55% debt to income ratio depending on the financial health of the borrower and could be considered on a case-by-case basis.

Are jumbo loans still available?

Yes, jumbo loans are still available, but they come with a higher interest rate compared to a conventional mortgage. Jumbo loans are more difficult to qualify for requiring assets and strong cashflow.

Do jumbo loans require PMI?

Jumbo loans require a larger down payment, and you will not have to pay PMI. If you make a low-down payment, then yes PMI is required.

What is the minimum credit score to get a jumbo loan?

Typically, a minimum of 720 FICO is required. In some cases, 700 FICO is the minimum and can go low as 680 FICO but be prepared to pay higher interest rates for your jumbo loan.

How do you get approved for a jumbo loan?

  1. Compare lenders side by side, check loan limits, underwriting guidelines and rates to find the best fit.
  2. Fill out form online to request a quote
  3. Complete the full application so the lender can review your package for decision
  4. Lender provides pre-approval with loan amount, closing cost estimates and timeline

What is the difference between a jumbo loan and conventional mortgage?

One of the biggest differences between a jumbo loan and a conventional mortgage is the loan limit. Conventional loan mortgages are generally used for the homebuyers with average income while jumbo loans are designed for higher income borrowers so they can purchase larger more expensive homes. The second main difference is jumbo loans are not protected by Freddie or Fannie, unlike conventional mortgages which are protected under Freddie and Fannie.

Think you qualify for a jumbo loan? Find out, contact us today!