Jumbo Loans
Available in Georgia, Florida, South Carolina, Alabama, Tennessee
A jumbo loan finances amounts above the conforming limit, up to $3 million. The feature that matters most is that there is no mortgage insurance at any loan-to-value, including 90%. On a conventional loan, 10% down means paying mortgage insurance monthly. On this one it does not.
90% with no mortgage insurance
Most people assume jumbo means 20% down. It does not.
You can go to 90% loan-to-value at a 680 credit score up to $2 million, with no mortgage insurance at all. On a $1.8 million purchase that is $180,000 down instead of $360,000.
The conditions at 90%: fixed rate only, no subordinate financing, and a debt ratio capped at 43%.
| Credit score | Maximum LTV | Up to |
|---|---|---|
| 680 | 90% | $2,000,000 |
| 700 | 80% | $3,000,000 |
| 660 | 80% | $2,000,000 |
The thresholds that decide your file
Three numbers do most of the work, and knowing them before you shop changes what you look at.
80% loan-to-value is the real dividing line. Above it the rules tighten across the board: your debt ratio ceiling drops from 49.99% to 43%, subordinate financing becomes unavailable, escrows are required, and gift funds require you to contribute 5% from your own money.
There is also a minimum loan amount. $500,000 on a fixed rate with no exceptions, $350,000 on an ARM. Below that you are on a conventional loan, which is usually the better outcome anyway.
Cash-out has no maximum amount, subject to the loan-to-value limits.
| Loan amount | Reserves |
|---|---|
| Up to $1,000,000 | 6 months |
| $1,000,001 to $2,500,000 | 12 months |
| Above $2,500,000 | 18 months |
First-time buyers, and what that actually means
Above 80% loan-to-value, first-time buyers face a 700 minimum score, a $1.5 million maximum loan, and primary residence only.
First-time buyer here means you have not owned a home in the past three years. So a previous owner who has been renting for three years or more counts as a first-time buyer again, which surprises people and occasionally works in their favor.
What will stop a jumbo file
Non-warrantable condos are not permitted. If you are buying a beach or resort condo, check warrantability before you write an offer.
Non-traditional credit is not accepted. Unlike our conventional, VA, and FHA programs, jumbo requires established credit: three tradelines, or two with a satisfactory twelve-month mortgage rating. Authorized user accounts do not count.
Credit event seasoning is seven years after a bankruptcy or foreclosure, and the maximum is ten financed properties.
One detail worth knowing in the other direction: the 7/6 and 10/6 ARMs are assumable. In a higher-rate environment, a future buyer being able to take over your loan and its rate becomes a genuine selling feature.
Common questions
Do I need 20% down on a jumbo loan?
No. You can go to 90% at a 680 credit score, with no mortgage insurance.
Is there mortgage insurance on a jumbo loan?
No, at any loan-to-value.
How much do I need in reserves?
Six months up to $1 million, twelve months to $2.5 million, and eighteen months above that.
What is the minimum jumbo loan amount?
$500,000 on a fixed rate, $350,000 on an ARM.
Can I buy a condo with a jumbo loan?
Only a warrantable one. Non-warrantable projects are not eligible on jumbo, though we do have other programs that place them.
Can I use a jumbo loan for an investment property?
Yes, up to 80% at a 680 score, fixed rate only.
This is not a commitment to lend. Rates, programs, and terms are subject to change without notice. All loans are subject to credit approval and property qualification.