Jumbo Loan Program
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Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS1561169
Jumbo Loan Program
The Jumbo Loan Program is for borrowers who require larger than conventional loan amounts to purchase luxury properties, invest in real estate, afford homes in expensive markets, or fund custom home renovations. Jumbo loans offer flexibility and higher loan amounts, making them a tailored solution for those with unique financial needs and circumstances. Ideal candidates include high-net-worth individuals, luxury home buyers, real estate investors, self-employed professionals, and residents in high-cost areas.

What is a Jumbo Loan Program?
A Jumbo Loan is a vital financial tool for those seeking to purchase properties that surpass the thresholds established by the Federal Housing Finance Agency (FHFA). In essence, it provides a means to secure financing for homes whose values exceed the maximum limit set for conventional conforming loans. For instance, in 2024, this limit stands at $766,550 in most counties for a single dwelling, as dictated by the FHFA.
The need for a Jumbo Loan arises when aspiring homeowners aim to invest in properties whose price tags soar beyond the confines of traditional mortgage parameters. These properties, typically luxurious or in high-demand areas, demand financial resources beyond what conventional loans can offer.
What are Jumbo Loan Program Requirements?
  • Owner-occupied, second home, 1-2 unit properties, Planned Unit Developments (PUDs), and condominiums are eligible
  • Down payment as little as 10.01%, but depending on your other assets, you may be required to put down more — potentially exceeding 20%
  • FICO score higher than 680 to qualify for a jumbo loan
  • Maximum debt-to-Income ratio (DTI) is 45%
  • Borrower must demonstrate reserves equivalent to 6-12 months' worth of the future all-in monthly payment for the property being purchased
  • Loan amounts up to $2.5 million
  • No Mortgage Insurance (MI) is required
  • Closing costs, including bank and title company services, government fees, transfer tax, appraisal, prepaid home insurance, and home tax, typically around 5% of the loan amount
  • Cash-out option available up to 75% home combined loan-to-value (HCLTV)
  • Program supports purchase, refinance, and cash-out refinance transactions
  • Delayed financing option available, allowing financing up to 180 days after property purchase
What documents are needed for a Jumbo Loan pre-approval?
  • 2022 and 2023 Tax Returns: personal and business, all pages & W2 forms
  • Paystubs for most recent 30 days (if W2)
  • Social Security Card and Driver License
  • Copy of two sides of Green Card/Work Authorization Card
  • Most recent two Bank Statements to document available funds for down payment, reserves, and closing costs.
If own the property:
  • Most recent Mortgage & HOA Statements
  • 2023 Tax Bill
  • Property Insurance Declaration Page
*Additional documentation may be required.
What are Jumbo Loan Limits?
The loan amount for our Jumbo Loan Program single dwelling unit ranges from a minimum of $766,551 up to $2.5 million. If you need a mortgage for something more expensive than Conventional loans can cover, you need a Jumbo Loan.
What are Jumbo Loan Rates?
Jumbo Loan rates can vary depending on several factors, including the borrower's credit score, loan-to-value ratio, loan amount, and current market conditions. Generally, interest rates for Jumbo Loan may be higher compared to traditional mortgage rates, as they often involve a higher level of risk for the lender due to the larger loan amount. It's essential to note that the rates are subject to change and may fluctuate until the loan is locked.
Conventional Loan vs Jumbo Loan
Conventional Loan:

  • Typically for loan amounts up to the conforming loan limit set by government-sponsored entities like Fannie Mae and Freddie Mac.
  • Down payments can vary but may be as low as 3% for certain borrowers.
  • Typically requires a good credit score, often above 620.
  • Debt-to-income ratio (DTI) requirements may vary but typically capped at 50%.
  • Can be used for various property types including primary residences, second homes, and investment properties.
  • May offer fixed-rate or adjustable-rate options with various term lengths.
  • Generally has less stringent approval requirements compared to Jumbo Loans.
  • Typically offers competitive interest rates, often lower compared to Jumbo Loans.

Jumbo Loan:

  • Designed for loan amounts exceeding the conforming loan limit, often starting at $766,551 for a single dwelling and going up to $2.5 million.
  • Requires a larger down payment compared to conventional loans, usually starting at 10.01% and potentially exceeding 20%.
  • Generally requires a higher credit score, above 680, to qualify.
  • Allows DTI ratio up to 45% only.
  • Can be used for owner-occupied homes, second homes,XXXXXXXXXXXXXXXXXXXXXXXXXXXX
  • Offers similar loan features but may have stricter underwriting criteria due to the larger loan amounts and increased risk.
  • Generally comes with higher interest rates due to the larger loan amounts and increased risk for lenders.
Conventional Loan Rates vs Jumbo Loan rates

Jumbo Loan Rates and Conventional Loan Rates represent two distinct types of mortgage options with differing characteristics and eligibility criteria.

Conventional Loan Rates:
  • Interest rates for Conventional Loans can fluctuate based on factors such as the borrower's credit score, loan amount, and prevailing market conditions
  • These rates are influenced by broader economic factors like inflation rates and decisions made by the Federal Reserve

Jumbo Loan Rates:

  • Interest rates for Jumbo Loans may differ from Conventional Loans, often reflecting the risk associated with larger loan amounts
  • These rates may vary depending on factors such as the borrower's creditworthiness, loan amount, and prevailing market conditions
  • Influenced by factors specific to high-value real estate transactions, such as property location, type, and market demand.
  • Interest rates for Jumbo Loans are slightly higher compared to Conventional Loans due to the increased risk associated with larger loan amounts and unique property types.
In summary, while Conventional Loan Rates are influenced by private lenders and broader economic conditions, Jumbo Loan Rates may be influenced by factors specific to high-value real estate transactions and borrower risk profiles.
Why choose my team & I?
  • #1. Transparency is paramount in your home buying journey. I ensure a clear understanding of the entire process, from application to closing, while Lending Capital Group INC guarantees straightforward communication, no hidden fees, and no surprises. You'll be well-informed and confident at every stage.
  • #2. Your dream home is within reach with our Low Down Payment Programs starting at 3%. I understand the importance of affordability, offering options that make securing your first home easier without straining your budget.
  • #3. Your financial well-being matters to me. At Lending Capital Group INC, we secure competitive interest rates, ensuring that you get the best possible terms and save money over the life of your mortgage.
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