When the home you want costs more than the conforming loan limit for your county, a jumbo loan covers the gap. It works much like a conventional mortgage, just at a higher loan amount — which means the qualifying standards run a little tighter.
Why Buyers Choose It
- Finance higher-priced homes. Borrow beyond your area’s conforming limit.
- One loan, not several. Cover the full amount in a single mortgage with a range of structures.
- Often no PMI. Because jumbo loans typically call for 20% down, mortgage insurance may not apply
What It Takes To Qualify
- Strong credit
- A down payment of 20% or more
- Documented ability to repay
- Verified assets