Jumbo Loans
A jumbo loan is a mortgage larger than the conforming limit the Federal Housing Finance Agency sets each year for your county. Above that line, Fannie Mae and Freddie Mac will not buy the loan, so it goes to investors with their own rules. Forward Loans (NMLS #2006640) places jumbo loans across its lender network in all eight states it serves.
Built for buyers above the county conforming limit. In the Phoenix metro that covers much of Paradise Valley, Arcadia, North Scottsdale and Silverleaf.
“The team here went above and beyond for me and my wife to get our dream home. Honestly they were such a pleasure to work with… I highly recommend them!”
★★★★★ Google review
Create your custom loan scenario today and see the possibilities for yourself!
Get started
On this page
What is a jumbo loan?
A jumbo loan, also known as a jumbo mortgage, is a type of mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits define the maximum loan amounts that Fannie Mae and Freddie Mac can purchase from lenders. Since jumbo loans do not conform to these limits, they are referred to as non-conforming loans. Forward Loans and Forward Loans Mortgage Marketplace are your go-to solutions for jumbo loans, helping you secure the financing needed for your dream home.
What are the benefits of a jumbo loan?
01
More Borrowing Power
To qualify for an FHA loan, you need a minimum credit score of 580. This lower credit score requirement makes for an attractive option for home buyers with less-than-perfect credit.
02
Flexible Loan Use
Jumbo loans can be used to finance primary residences, second homes, or investment properties. This flexibility makes them ideal for a variety of home-buying scenarios.
03
Pricing on larger loans
Jumbo pricing varies by lender and by file. We compare jumbo options for you so you can see how they stack up against a conforming loan.
04
Less Paperwork
Documentation for a jumbo loan depends on the lender and your file. We walk you through the list before you apply.
What are the jumbo loan requirements?
To qualify for a jumbo loan, you’ll need to meet specific criteria:
A mortgage calculator can help you figure out how your down payment amount will affect your future monthly payments. By using Forward Loans Mortgage Marketplace, you can easily access the tools you need to make these calculations.
01
Minimum Credit Score
A minimum credit score of 680 is required. Higher loan amounts, shorter loan terms, or adjustable interest rates may necessitate an even higher credit score.
02
Closing Costs
Expect to pay between 2% and 6% of the purchase price in closing costs. Forward Loans will help you understand and prepare for these expenses.
03
Debt-to-Income Ratio
Your debt-to-income ratio (DTI) should be 45% or lower. This ensures that you have a manageable level of debt relative to your income.
04
Loan-to-Value Ratio
For 30-year fixed loans, the loan amount cannot exceed 89.99% of the home's value. For 15-year fixed and adjustable-rate loans, the loan-to-value ratio cannot exceed 80%.
How do jumbo loans work?
Jumbo loans are designed for high-value properties that exceed conforming loan limits. Here's how they compare to other mortgage types:
01
Jumbo Loans vs. Conforming Loans
Conforming loans adhere to FHFA limits, while jumbo loans exceed these limits. As a result, jumbo loans are not backed by Fannie Mae or Freddie Mac, which can lead to more stringent borrowing requirements and potentially higher borrowing costs.
02
Understanding Conforming Loan Limits
The FHFA adjusts the conforming loan limit every year, county by county, and high-cost areas get higher ceilings. Forward Loans can help you find the current limit for your county and the right financing above it.
Why get a jumbo loan through Forward Loans?
Forward Loans offers several benefits to make securing a jumbo loan easier and more accessible:
01
More Borrowing Power
Jumbo loan amounts above the conforming limit vary by lender. Ask us what the lenders we work with allow for your file.
02
Flexible Loan Use
Whether you're buying a primary residence, a second home, or an investment property, a jumbo loan from Forward Loans can meet your needs.
03
Terms that fit
Jumbo loans from Forward Loans come with terms built around your file, so you get a program that fits.
04
A clear document list
We tell you up front which documents a jumbo file needs, so there are no surprises mid-process.
What do jumbo lenders look at in detail?
To qualify for a jumbo loan with Forward Loans, you’ll need to meet specific requirements:
Property Types
You can use a jumbo loan to purchase various types of properties, including single-family homes, vacation houses, and investment properties. Forward Loans can finance these properties, provided they meet our lending criteria.
Down Payment
Jumbo loans typically require a higher down payment compared to conforming loans. For single-family units, expect to put down at least 10.01% of the purchase price. For duplexes, a 15% down payment is required.
Credit Score
Your credit score plays a significant role in qualifying for a jumbo loan. Minimums vary by lender and by loan term, and they run higher than conforming minimums.
Debt-to-Income Ratio (DTI)
A DTI ratio of 45% or lower is required. This ensures that you have sufficient income to manage your monthly mortgage payments along with your other debts.
Cash Reserves
Lenders want to see that you have enough cash reserves to cover your mortgage payments in case of financial emergencies. Typically, you may need up to 18 months' worth of expenses in reserve. Forward Loans accepts various forms of reserves, including retirement accounts, business funds, and gift funds.
Higher Closing Costs
Expect higher closing costs with jumbo loans, ranging from 3% to 6% of the loan amount. On an $800,000 mortgage, this could amount to $24,000 to $48,000 in cash at closing.
How do you apply for a jumbo loan?
The process of applying for a jumbo loan is similar to other types of mortgages. Here’s how it works:
01
Shop Our Mortgage Marketplace
At Forward Loans, we shop our Mortgage Marketplace to compare options from the lenders we work with and find products that fit your needs. By comparing offers from multiple lenders, we show you the terms each lender offers for your jumbo loan. Our goal is to provide you with tailored solutions that match your financial situation and homeownership goals.
02
Get Your Initial Mortgage Approval
Once you’ve chosen a lender, you can start the process of getting your initial mortgage approval. You’ll provide your lender with documentation regarding your finances and they’ll tell you how much you qualify for and at what interest rate.
03
Find a House and Submit an Offer
With your initial mortgage approval in hand, you can find the perfect property and submit your offer. A real estate agent can help you navigate this process, setting up showings, handling paperwork, and negotiating with the seller.
04
Get an Appraisal and Go Through Underwriting
Once your offer has been accepted and you’re under contract, your lender will get to work underwriting your loan. As previously mentioned, jumbo loans often require manual underwriting, which just means that a person will be completing the process themselves rather than running it through a computer.
Your lender will also order an appraisal to ensure your property isn’t worth less than the amount of money they’re lending you to purchase it.
05
Close on Your Jumbo Loan
Once the appraisal and underwriting are complete, your lender will tell you you’re clear to close on your jumbo loan. You’ll need to know how much cash to bring to closing to cover your down payment and closing costs, which will be detailed for you in your Closing Disclosure.
Create your custom loan scenario today and see the possibilities for yourself!
Get startedJumbo loan FAQs
What is a jumbo mortgage?
A jumbo mortgage is a home loan that exceeds the conforming loan limit set by the FHFA, making it a non-conforming loan.
What is the minimum amount for a jumbo loan?
A jumbo loan is any loan larger than the conforming limit the FHFA sets for your county. The limit adjusts every year and is higher in some markets, so the exact threshold depends on where you are buying and when.
Is a jumbo loan a conventional loan?
Yes, jumbo loans are considered conventional loans because they are not backed by the federal government.
Can I get a jumbo loan refinance?
Yes, you can refinance a jumbo loan if you meet the lender’s eligibility criteria. Forward Loans can help with jumbo loan refinancing and compares options from the lenders we work with.
The bottom line on jumbo loans
If you're looking to purchase a high-value property in a competitive market, a jumbo loan from Forward Loans can fit. A jumbo loan through Forward Loans gives you the borrowing power and the terms to buy a higher-priced home. Start your application with Forward Loans Mortgage Marketplace and compare jumbo options from the lenders we work with. Once underwriting is complete and the appraisal is satisfactory, you'll close on your loan. Bring the necessary cash to cover your down payment and closing costs, as detailed in your Closing Disclosure.
Marketplace Says…
If you're looking to purchase a high-value property in a competitive market, a jumbo loan from Forward Loans can fit. A jumbo loan through Forward Loans gives you the borrowing power and the terms to buy a higher-priced home. Start your application with Forward Loans Mortgage Marketplace and compare jumbo options from the lenders we work with.
Your home financing, without looking back
No more running from lender to lender. Compare your options in one place. You’ve heard enough?
Let’s get started