When the price of a home goes beyond conforming loan limits, a jumbo loan fills the gap. Underwriting is a bit more detailed, with stronger credit, reserves and documentation expected, but the program lets you buy the home you actually want.
Highlights
- Loan amounts above conforming limits
- Fixed and adjustable options
- Useful for high-cost markets
- Can fund primary, second or investment homes (varies)
Keep in mind
- Larger down payment typically expected
- Higher reserve and documentation requirements
Who it suits
Buyers in higher-priced markets with solid credit, income and reserves.
Eligibility, rates and terms vary by borrower, property and state.