Jumbo LOANS

Jumbo loans can be used for primary homes, investment properties and vacation homes. If you’re buying a mansion — or just a regular home in a high-priced area, jumbo loans are a great option for you. 

Jumbo loans typically offer more competitive interest rates as compared to conventional loans.  Fixed-or-adjustable-rate jumbo mortgages are also available.

As the term suggests, a jumbo loan gives you the ability to borrow more money for a larger or more expensive property.  

The jumbo loan credit score requirement is usually higher than what you’ll find with a conforming loan. To qualify for a jumbo loan, you'll need a credit score of at least 700.

Because you will be borrowing more money, you’ll typically need a low-debt-to-income (DTI) ratio, which is the percentage of your monthly income that goes to debt payments. 

The down payment on a jumbo loan is typically 10 percent to 20 percent (and sometimes more). Because Jumbo loans are not back by Fannie or Freddie, these mortgages pose a higher risk . So it's important to have enough reserves, or liquid assets, to cover between six and 12 months’ worth of mortgage payments.