A jumbo loan (or jumbo mortgage) is a type of financing where the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
The 2022 loan limit on conforming loans for 1-unit properties is $647,200 in most areas and $970,800 in high-cost areas. For borrowers interested in purchasing more expensive properties, jumbo loans are a valuable alternative.
If you are buying a one-unit primary property with a loan amount of up to $2 million, you will need to have a minimum median FICO® Score of 680 and a minimum down payment of 10.01%.
The maximum debt-to-income ratio must be no higher than 45%.
What you need to qualify for this loan will depend on what type of jumbo loan you are getting and the amount you need to borrow:
- Home purchase
- Rate or term refinance
- Cash-out refinance
- Investment property purchase or refinance
- Land purchase