Mortgage Programs: Jumbo loans
Jumbo Loans for Higher priced homes
A jumbo loan may help eligible borrowers finance a higher-priced home when the loan amount is above the conforming loan limit for the county where the property is located.
At Andes Mortgage, we help buyers and homeowners compare jumbo mortgage options for primary residences, second homes, investment properties, refinances, and cash-out refinances.
If you have strong credit, stable income, solid assets, and a larger loan amount, a jumbo loan may give you the financing flexibility you need without being limited by standard conforming loan limits.
Compare aggressive jumbo options for prime borrowers.
Fast snapshot
Loan Amounts up to $10M
Credit scores as low as 660
Minimum 10% down payment
Primary, second home and investment options
Purchase, refinance and jumbo cash-out options
Loan amounts up to $10M
Purchase, refinance and cash out
Fixed-rate and ARM options
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Jumbo Loan quick facts
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Jumbo Loan Feature
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What it means
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Loan Amount
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Available when you need a loan over $832,700 or $1,249,425 in high cost living areas
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Best Fit
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Strong borrowers buying or refinancing higher priced homes
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Down payment
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10-20% Down but best rates available with 25%+ down
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Credit Score
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660 minimum but stronger credit scores needed for best rates
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Reserves
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Mortgage insurance
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Property Use
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Primary, vacation and investment
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Loan purpose
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Purchase, rate/term refinance and cash-out refinance
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Andes Mortgage's Prime Jumbo loan requirements
Here are some of the common requirements for our Prime Jumbo Loans.
Loan Amounts up to $10,000,000
Finance high-value primary homes, second homes, investment properties, and cash-out refinance.
Minimum 10% Down payment
Put down as little as 10% down when your credit score is at least 720.
Reserve Requirements
6 months of PITIA reserves are required for jumbo loans
Income Documentation
W2s, Tax Returns are required for wage and self-employed borrowers. Not required for those receiving fixed income.
Minimum Credit Score
Our Prime Jumbo program requires a minimum 660 credit score.
Maximum Debt-to-Income Ratio
Our Prime Jumbo loans have a 45% debt to income ratio cap.
Minimum Seasoning Events
Minimum 5 year wait times for Chapter 7 bankruptcy. Minimum 7 years for foreclosure, short sales.
Gift Funds allowed
Receive up to 100% of the funds needed for down payment and closing via gift.
For more flexible guidelines or income documentation such as Bank Statement, 1099-only, DSCR, take a look at our Non-QM Jumbo Loan Programs.
What is a Jumbo Loan?
A jumbo loan is a mortgage that is larger than the conforming loan limit for the property’s county. In most parts of the country, the current conforming loan limit stands at $832,750 with high cost areas (HCOL) as much as $1,249,425.
These loan limits are updated once year by the GSE’s, Fannie Mae and Freddie Mac.
When the loan amount is above the conforming limit, the mortgage is considered a jumbo loan.
Because jumbo loans are larger, they usually come with stricter requirements for credit, income, assets, reserves, debt-to-income ratio, and property review.
In simple terms:
If the home price is higher and the mortgage amount is above the conforming loan limit, you may need a jumbo mortgage. At Andes Mortgage, we offer jumbo loans as high as $10,000,000.
Types of Jumbo Loans
👇 Tap any option below for more information
Home Purchase
Available with as little as 10% down.
Rate/Term Refinance
Lower the rate or term of your current mortgage.
Cash-Out Refinance
Access equity of your home up to 75% LTV.
Jumbo HELOC/HELOAN
Second lien for equity access without affecting the current mortgage.
Jumbo loan rates & Pricing factors
Jumbo loan rates can vary by borrower, property, loan amount, occupancy, market conditions, and loan structure.
Because jumbo loans are larger than standard conforming loans, lenders usually price the loan based on the full risk profile of the borrower and the property.
Common jumbo rate factors include:
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Factor
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Why it matters
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Credit Score
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Higher credit scores will help you get access to better rates and pricing
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Down Payment
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A larger down payment may help improve rates and pricing because it reduces lender risk.
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Occupancy
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Primary homes will have lower rates than investment properties
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Refinance
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Cash-out refinances carry higher risk than regular rate/term refis. Therefore, their rates are higher
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Fixed vs ARM Rates
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ARM rates will generally be lower than fixed interest rates
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For current jumbo mortgage rate examples, visit our dedicated jumbo rates page.
Traditional Jumbo vs Non-QM Jumbo
A traditional jumbo mortgage is usually best for borrowers with strong credit, stable full-documentation income, solid assets, and a clean borrower profile. A Non-QM jumbo loan may be a better fit if the borrower has complex income sources or recent credit events.
Here is a comprehensive side by side comparison between the two.
Traditional Prime Jumbo
- High income salary wage employee
- Self-employed borrower with large tax reported income
- Borrower has prime credit scores, typically above 720.
- Clean credit history, no major delinquencies or credit events.
- Abiity for higher down payments, at least 20% down.
Non-QM Jumbo
- Borrower has large income sources but often complicated.
- Self-employed borrower whose tax returns do not show enough income because of write-offs.
- Credit scores as low as 640.
- Recent bankruptcy, foreclosure, short sale, deed-in-lieu or mortgage late.
- Debt-to-income ratio above jumbo guidelines.
- Need to qualify with bank statements, 1099, P&L or assets.
Not sure which one is the best option for you? Find out in less than 60 through Mortgage Match™️
Related resources you may find helpful
Non-QM Loans
Suite of Non-QM loans for self-employed borrowers and investors offered by Andes Mortgage
Jumbo Loans Frequently asked questions
How do jumbo loan interest rates compare to conventional loan rates?
While interest rates for jumbo loans can vary, they are generally competitive with or slightly higher than conventional loan rates. Your creditworthiness, financial profile, and market conditions will influence the specific interest rate you receive.
What are the minimum down payment requirements for jumbo loans?
Jumbo loans typically require a higher down payment compared to conventional loans. While requirements can vary, most lenders generally require a minimum down payment of 10% or 20% of the property’s purchase price.
Are jumbo loans harder to qualify for compared to conventional loans?
Yes, qualifying for a jumbo loan can be more challenging due to the larger loan amount and stricter criteria. Lenders typically require a high credit score, a low debt-to-income ratio, substantial income, and significant cash reserves.
Can I use a jumbo loan for a second home or investment property?
Yes, jumbo loans can be used to finance second homes or investment properties. However, keep in mind that the qualifying criteria may be more stringent for these types of properties.
Are jumbo loans available for refinancing existing mortgages?
Yes, you can refinance an existing mortgage with a jumbo loan. It can be a strategic option if you want to take advantage of lower interest rates, access equity, or consolidate debts.
Can I use gift funds for the down payment on a jumbo loan?
Depending on the lender’s guidelines, it may be possible to use gift funds for a jumbo loan down payment. However, there may be specific requirements regarding the source and documentation of the gift funds.
What is the jumbo loan limit?
At Andes Mortgage, our maximum jumbo loan limit is $10 million.
What if I do not qualify for a traditional jumbo loan?
If you do not qualify for a prime Jumbo loan, consider our Non-QM jumbo programs which have more flexibilities for income and credit.
Ready to see if a jumbo loan can work for you?
Looking for the best pricing and structure for your next jumbo mortgage? Let Andes Mortgage review your full scenario and compare jumbo loan options from multiple lenders.