How To Get Mortgage Loan For Jumbo Loans: 5 Steps

If you need to borrow more than the conforming loan limit, you will need a jumbo loan. Jumbo loans are typically more expensive than conforming loans, and they can be more difficult to qualify for. However, there are a number of lenders who offer jumbo loans, and there are a number of ways to make jumbo loans more affordable.

In today’s post, I will discuss everything you need to know about mortgage loan for jumbo loans, the benefits of getting a jumbo loan and how to find the best jumbo loan lender.

What are the Benefits of Mortgage Loan For Jumbo Loans?

The benefits of a mortgage loan for jumbo loans include:

  • Higher borrowing limits: Jumbo loans allow you to borrow more money than you could with a conventional loan. This can be helpful if you are buying a more expensive home or if you have a high debt-to-income ratio.
  • Flexible terms: Jumbo loans are typically more flexible than conventional loans in terms of repayment terms and prepayment penalties.
  • Competitive interest rates: While jumbo loans typically have higher interest rates than conventional loans, the rates can still be competitive.
  • More financing options: Jumbo lenders may offer a wider range of financing options than conventional lenders. This can be helpful if you have unique needs or circumstances.
  • Faster closing times: Jumbo lenders may be able to close loans faster than conventional lenders. This can be helpful if you need to move into your new home quickly.
  • More personalized service: Jumbo lenders may offer more personalized service than conventional lenders. This can be helpful if you have questions or concerns about your loan.

How to Find the Best Jumbo Loan Lender?

To find the best jumbo loan lender, you should consider the following factors:

  • Interest rates: Compare interest rates from multiple lenders to find the best deal. Keep in mind that jumbo loans typically have higher interest rates than conventional loans, but the rates can still be competitive.
  • Fees: Jumbo lenders may charge a variety of fees, such as origination fees, appraisal fees, and document preparation fees. Be sure to compare fees from multiple lenders to find the best deal.
  • Underwriting guidelines: Jumbo lenders typically have stricter underwriting guidelines than conventional lenders. This means you may need a higher credit score and down payment to qualify for a jumbo loan. Be sure to compare underwriting guidelines from multiple lenders to find the best fit for your financial situation.
  • Customer service: Read reviews of different lenders to see what other borrowers have to say about their customer service experiences. This can help you to choose a lender that is responsive and helpful.

9 Types of Mortgage Loan For Jumbo Loans:

1. Fixed-Rate Jumbo Mortgage:

30-Year Fixed Jumbo Loan: This is a jumbo loan with a fixed interest rate that remains unchanged over a 30-year term, offering stability and predictable monthly payments. 15-Year Fixed Jumbo Loan: Similar to the 30-year option, but with a shorter loan term of 15 years, which typically comes with a lower interest rate and faster equity buildup.

2. Adjustable-Rate Jumbo Mortgage (Jumbo ARM):

5/1 ARM: The interest rate on this jumbo ARM is fixed for the first five years and then adjusts annually after that, based on a predetermined index. It can result in lower initial interest rates but potential rate fluctuations later on. 7/1 ARM: Similar to the 5/1 ARM, but the interest rate remains fixed for seven years before adjusting annually. 10/1 ARM: The interest rate is fixed for ten years before adjusting annually.

3. Interest-Only Jumbo Loan:

These loans allow borrowers to make interest-only payments for a certain period (typically 5 to 10 years) before transitioning to principal and interest payments. Interest-only jumbo loans can be appealing for those who expect their income to increase in the future.

4. Portfolio Jumbo Loan:

Portfolio loans are offered by local or regional banks and credit unions that retain the loans on their own books rather than selling them to secondary mortgage market entities. This allows for more flexibility in underwriting criteria, making it easier for borrowers with unique financial situations to qualify.

5. Super Jumbo Loan:

Super jumbo loans are designed for exceptionally high-value properties that exceed even the standard jumbo loan limits. The specific threshold for super jumbo loans varies by lender but is often in the multi-million-dollar range.

6. Interest-Only Payment Option Jumbo Loan:

Some jumbo loans offer the option to make interest-only payments for a specified time while giving borrowers the flexibility to make principal payments when they choose. This can be beneficial for individuals with irregular income or financial investments.

7. Piggyback Jumbo Loan:

In some cases, borrowers combine a jumbo first mortgage with a second mortgage or home equity line of credit (HELOC) to reduce the down payment required on the jumbo loan. This approach is sometimes referred to as a “piggyback” loan.

8. Construction-to-Permanent Jumbo Loan:

If you’re planning to build a custom high-value home, this type of jumbo loan allows you to finance both the construction and permanent mortgage phases in one package.

9. Foreign National Jumbo Loan:

Designed for non-U.S. citizens or foreign nationals, these loans accommodate individuals who want to purchase property in the United States.

Mortgage Loan For Jumbo Loans

1: Have a good credit score:

Jumbo lenders typically require borrowers to have a credit score of at least 700, although some lenders may require a higher score.

2: Have a low debt-to-income ratio:

Jumbo lenders also typically require borrowers to have a debt-to-income ratio of no more than 43%. This means that your total monthly debt payments, including your mortgage payment, should not exceed 43% of your monthly income.

3: Make a large down payment:

Jumbo lenders typically require borrowers to make a down payment of at least 20% of the purchase price of the home. However, some lenders may allow borrowers to make a down payment as low as 10%.

4: Get pre-approved for a loan:

Before you start shopping for a home, it’s important to get pre-approved for a mortgage loan. This will give you an idea of how much money you can borrow and what your monthly mortgage payments will be.

5: Shop around for the best interest rate and terms:

It’s important to compare rates and terms from multiple lenders before you choose a loan. You may also want to consider using a mortgage broker to help you find the best loan for your needs.


Keep in mind that the availability of these jumbo loan types may vary by lender and market conditions. When considering a jumbo loan, it’s essential to work closely with a knowledgeable mortgage professional who can guide you through the selection process and help you choose the right type of jumbo loan for your specific financial situation and home-buying goals.


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). Conforming loan limits are established annually and vary by location, but they represent the maximum loan amount that can be purchased or guaranteed by government-sponsored entities like Fannie Mae and Freddie Mac. When a home purchase exceeds these limits, borrowers typically need to apply for a jumbo loan.

Leave a Comment