A large two-story home that is colored in yellow with white trim.Jumbo Loans

Jumbo home mortgages are best suited for families looking to purchase a large or luxury home that exceeds the limits of a standard-conforming mortgage loan. The limits on conforming mortgages are set by Fannie Mae and Freddie Mac and are based on the area of the country in which you live. For most areas of the US, the limit on a conforming mortgage is $424,100 (for 2017). For areas of the country with high costs of living, the limit may be as high as $636,000.

Jumbo Home Loans are a type of non-conforming loan and are not necessarily harder to get, but there are more restrictions than there are on conventional mortgage loans.

  • A 20% down payment (or 20% in equity if you are looking to refinance a jumbo loan) will be required.
  • Most lenders have strict debt-to-income requirements for jumbo loans which require that your total monthly mortgage payment cannot be more than 43% of your gross income (before tax income) and some even to 49.99%.

Document requirements for Jumbo Home Loans:

  • 2 years of tax returns
  • Current and previous pay stubs (2 previous pay stubs if you are paid on a weekly basis)

For those who are self-employed, the following are also required:

  • 1065 federal partnership tax returns for the past 2 years
  • 1120 corporate income tax returns for the past 2 years
  • YTD profit and loss statements
  • K-1 and/or S-Corps for the previous 2 years.

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