Stewardship Capital

Jumbo Loans

A jumbo loan is a home loan that is bigger than the limit set for your county. If the home you want needs a bigger loan than that limit allows, this page explains how jumbo loans work, what lenders look at and how to get ready.

Who it is forBuyers and homeowners whose loan amount is above the county limit.
What sets the lineThe county where the home sits. Limits differ from place to place.
What to expectMore paperwork and a closer look at savings. Rules vary by lender.

What is a jumbo loan?

A jumbo loan is a mortgage above the conforming loan limit for the county where the home is. Fannie Mae and Freddie Mac can only buy loans up to that limit. A loan above it is called non-conforming.

Because of that, each lender sets many of its own rules for jumbo loans. Two lenders can look at the same file and ask for different things.

How do I know if I need a jumbo loan?

Compare your loan amount to the limit for the home's county. Your loan amount is the price of the home minus your down payment. The price alone does not decide it.

Limits are set each year and are not the same everywhere. Counties with high home costs often have higher limits. Our loan limits by county page lists every county in thirteen states, so you can look up the home you have in mind.

A bigger down payment can sometimes bring a loan under the limit. Stephen can run it both ways so you see the choices side by side.

Who qualifies for a jumbo loan?

Lenders want to see strong, steady finances. No government-backed buyer stands behind a jumbo loan, so the lender takes on more of the risk. That is why they look closely at:

  • Your credit history
  • Your income and how steady it has been
  • Your other monthly debts
  • Your down payment
  • Your savings after closing

The exact standards vary by lender and by loan size. We do not promise approval. Stephen reviews your file and tells you honestly where you stand.

What documents do I need for a jumbo loan?

Lenders commonly ask for more proof on a jumbo loan. A typical list looks like this:

  • Photo ID
  • Recent pay stubs and W-2s, or tax returns if you are self-employed
  • Bank and investment statements
  • Details on any large deposits
  • The purchase contract, if you are buying

Your lender may ask for more or less. Stephen tells you what your file needs up front.

What are reserves and why do they matter?

Reserves are the savings you still have after you pay your down payment and closing costs. Jumbo lenders often want to see more reserves than other loans. They want to know you could keep making payments if life gets bumpy.

How much they ask for varies by lender and by loan size. Some lenders count certain retirement or investment accounts, at least in part. Ask early so there are no surprises.

Will I need an appraisal?

Yes. A jumbo loan needs an appraisal to confirm the home's value. On larger loans, some lenders add extra review, and some ask for a second appraisal. This varies by lender and loan amount.

Why should agents talk to a lender before a jumbo offer?

A buyer who looks fine for a regular loan may need a different plan once the loan goes over the limit. Talking early helps the buyer shop in the right range and write an offer with confidence. It also helps agents set honest timelines, since jumbo files can need more review. See our buy a home page for how we work with buyers and agents.

Can I refinance into or out of a jumbo loan?

Yes, in many cases. A homeowner can refinance a jumbo loan, and some owners refinance into a loan under the county limit. Our refinance page explains the basics. Stephen can compare the options for your situation.

Frequently asked questions

What is the jumbo loan limit?

There is no single number. The conforming loan limit is set by county and changes over time. A loan above the limit for your county is a jumbo loan. Our loan limits by county page lists every county in thirteen states.

Is a jumbo loan harder to get?

It can ask for more. Lenders often want more documents, more savings after closing and a closer look at your finances. Rules vary by lender, and Stephen confirms what applies to your file.

Can I get a jumbo loan if I am self-employed?

Many self-employed people do. Lenders usually want to see business and personal tax returns. If your returns show less income than you really earn, our bank statement loans page explains another way lenders can look at income.

Can I use a jumbo loan for a second home or a rental?

Some lenders offer jumbo loans for second homes. Rental property rules differ more from lender to lender. Availability varies, so Stephen checks it on the specific file.

Will a jumbo loan take longer to close?

It can, because of the added review and paperwork. Gathering your documents early is the best way to keep things moving.

Not sure if your loan is a jumbo?

Tell Stephen the county and the price range. He will tell you which side of the limit you are on and what the next step looks like.

Talk with Stephen

This is not a quote, a commitment to lend or an offer of credit. Stephen Chakerian, NMLS #2193331 | Stewardship Capital, a team of Barrett Financial Group, L.L.C., NMLS #181106 | Equal Housing Opportunity.