Key Jumbo Loan Guidelines
- Conforming Limit Threshold: Financing above FHFA limits ($766,550+ in standard counties, higher in high-cost areas).
- Higher Down Payment: Typically requires 10% to 20% down payment.
- Strict Cash Reserve Requirements: Lenders often require 6 to 12 months of mortgage payments in liquid reserves.
Jumbo Loan Scenarios Table ($1,200,000 Purchase Price)
| Down Payment | Jumbo Loan Amount | Interest Rate | Monthly P&I | Total 30-Yr Interest |
|---|---|---|---|---|
| 10% ($120,000) | $1,080,000 | 6.875% | $7,094.66 | $1,474,078 |
| 15% ($180,000) | $1,020,000 | 6.875% | $6,700.51 | $1,392,185 |
| 20% ($240,000) | $960,000 | 6.875% | $6,306.37 | $1,310,292 |
Frequently Asked Questions
What is a Jumbo Loan?
A jumbo loan is a non-conforming mortgage that exceeds the maximum loan limits established by the Federal Housing Finance Agency (FHFA). Because jumbo loans cannot be purchased by Fannie Mae or Freddie Mac, lenders enforce stricter credit, down payment, and cash reserve guidelines.