Loan Products

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 Jumbo loans are a type of non-conforming mortgage loan that exceeds the loan limits set by the Federal Housing Finance Agency (FHFA). These loans are typically used for purchasing high-value properties and have specific characteristics:

1. Loan Limits: Jumbo loans exceed the conforming loan limits, which vary by region. For instance, in 2023, the limit for a single-family home in most areas is $726,200, but it can be higher in certain high-cost areas.
2. Credit Score Requirements: Borrowers usually need a higher credit score to qualify for a jumbo loan, often requiring a score of 700 or above.
3. Down Payments: Jumbo loans typically require larger down payments, often ranging from 10% to 30%, depending on the lender and the borrower’s financial profile.
4. Debt-to-Income Ratio: Lenders may have stricter debt-to-income (DTI) ratio requirements for jumbo loans, usually looking for a DTI ratio of no more than 43% to 45%.
5. Interest Rates: Jumbo loans can have higher interest rates than conforming loans due to the increased risk associated with lending larger amounts of money.
6. No Mortgage Insurance: Unlike conventional loans, jumbo loans do not typically require private mortgage insurance (PMI), but this can vary by lender.
7. Portfolio Financing: Many lenders keep jumbo loans in their own portfolios instead of selling them on the secondary market, resulting in more flexibility in terms and conditions.