Jumbo Loans

Jumbo loans are underwritten primarily as though they were conforming Fannie Mae loans. Income, assets, employment, credit and appraised value are the major considerations in determining eligibility.

Borrowers have more opportunity today than ever before in the jumbo market. Loans to 100% of the property's value are offered by many lenders. "Piggy Back" loans are also a popular option allowing a first mortgage at conforming ($227,150) prices with a second mortgage up to 90% of the appraised value / purchase price. Although the interest rate is slightly higher, no mortgage insurance is required effectively reducing monthly payments while at the same time increasing tax deductions.

Some things to consider when applying for jumbo financing...
Ratios used are the same as conforming;
28% of your income for housing, 36% towards total debt
Depending on value, a second appraisal may be necessary (often times lenders do an "appraisal review" using a staff appraiser to concur with the independent appraiser)
Jumbo pricing is always slightly higher than conforming interest rates. While shopping for your loan, use the conforming rate only as an indicator for what your rate may be. As a general rule only, expect to pay .25% higher in interest rate over standard FNMA pricing.
Most programs available for conforming loans amounts are available for jumbo with little variance except rate.
Loan Product Links
Jumbo No Income Verification Poor Credit
Investor Loans New Construction

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