Jumbo Loans

Jumbo Loans

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What is a Jumbo Loan and How does it work? (Your 2019 Guide)

What is a Jumbo Loan and How does it work?

Are you ready to buy that big, lavish, gorgeous house? Do you need a big loan?

Typically, there are limits to how much you can borrow with conventional conforming loans. These thresholds are set by the Federal Housing Finance Agency, or FHFA, and depend on the property’s location. Unlike conventional conforming mortgages, a Jumbo Loan will not be purchased or guaranteed by Fannie Mae or Freddie Mac.

So, what is a Jumbo Loan?

If you are looking for a loan to purchase a property in a highly competitive real estate market or are looking to buy a luxury home, you’ll likely need a Jumbo Loan.

For instance, in 2019, the loan limit in San Diego County, Calif., for a single-family home is $690,000. If you need a loan greater than $690,000, you must apply for a Jumbo Loan.

What is a Jumbo Loan?

If you wish to obtain a loan that exceeds the conventional conforming loan limit in a location you covet, a Jumbo Loan is your ticket. The higher the home prices are in a particular county, the higher the conforming limit for that area.

It is critical, in that sense, to check the loan limits of the region in which you are looking to buy. To see 2019’s loan limits for all counties, you can download the PDF below. This file comes from the FHFA website and is offered here as a convenience for our prospective clients.


A Jumbo Loan is also known as a conventional conforming loan. As such, the maximum loan amount will be different for each lender.

Furthermore, there are various term options for Jumbo Loans.

This type of loan can be used to buy your primary home, a vacation home or investment properties.


 How does a Jumbo Loan work?

 How does a Jumbo Loan work?

If you hope to purchase a home with a high price tag — $500,000 or more — then you’ll likely need a Jumbo Loan.

Because higher risk is assumed, the qualification criteria for Jumbo Loans are stricter. Unlike a borrower in need of a conventional conforming loan, you will likely go through rigorous credit requirements for a Jumbo Loan — this is simply because there’s no guarantee by Fannie Mae and Freddie Mac and there’s more money involved.

That said, this type of loan is still very much available throughout the U.S.

Call Secure Choice Lending at (951) 707-9364 and our loan experts will answer all your questions about Jumbo Loans.


How do I qualify for a Jumbo Loan?

How do I qualify for a Jumbo Loan?

Below are the eligibility requirements of Jumbo Loans:

High Credit Score — A score of at least 700 is a common requirement.

Low Debt-to-Income Ratio — A Debt-to-Income Ratio of 36% is preferred for many conventional conforming loans. For Jumbo Loans, you may need an even lower DTI.

Money for Down Payment and Processing Costs — On average, a down payment for a Jumbo Loan is between 10% and 20%. Some lenders allow a down payment lower than 10%, but your terms could have a higher interest rate.

Adequate Cash Reserves Available — You must be prepared to show enough cash savings or assets to cover at least six to 12 months of monthly payments. These reserves are also known as “post-closing liquidity.”

Call Secure Choice Lending at (951) 707-9364 and our loan experts will help you determine your qualifications for a Jumbo Loan.


Secure Choice Lending can assist you with a Jumbo Loan

Jumbo Loan approvals have some flexibility that conventional conforming loans don’t.

To satisfy your specific Jumbo Loan needs, call Secure Choice Lending today.

To satisfy your specific Jumbo Loan needs, call Secure Choice Lending today.

Our loan officers are happy to answer all your questions and discuss your options until everything is clear to you.

Secure Choice Lending is a full-service mortgage broker that will secure you a mortgage that doesn’t break the bank.

To streamline the lending experience, our team of financial experts matches consumer needs with the appropriate loan programs and level of risk. With loan officers versed in all mortgage types, solutions to your home-buying questions are a phone call away.


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