Jumbo Loan


A Jumbo loan is any loan which the loan amount exceeds the conforming loan limits. This loan exceeds Fannie Mae or Freddie Mac’s cap for the area where the property is located. For example, in Los Angeles, any home loan that is more than $729,750 is a jumbo loan. There is no limit to the amount of a jumbo loan. These are large loans that can be used to purchase estates and mansions. These loans have no insurance. The interest rates on jumbo mortgages are higher than that of conforming mortgage loans. This is available as fixed-rate or adjustable-rate loans but fixed rate loans are rare.


These factors make you eligible for a jumbo loan

  • Low debt-to-income ratio
  • High credit score of 700 or more
  • Large down payment of twenty (20) to thirty (30) percent
  • Income documentation
  • Employment history
  • Cash reserves
  • Monthly mortgage payment to be no more than 38 percent of your income before taxes


  • There are various jumbo loan programs from different lenders to pick from. Example, a 30 year fixed-rate loan or you could get a mortgage with an adjustable-rate.
  • With this loan, you don’t have to take two or more loans
  • Interest rates for this loan are dropping since 2009
  • It is easy to apply for this loan
  • Jumbo refinances can yield huge savings
  • Jumbo borrowers get attractive offers