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  • Rate and Term Refinance
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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.

Like FHA Loans, VA Loans are easier to qualify for than conventional loans. Additionally, they include myriad benefits, such as 100% financing. If you are a veteran or an active member of the military, and are looking to purchase a home, you will find everything you need to know about VA Loans below.

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The Specifics

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. For current loan limits for all counties, please reach out to a Secure Choice Lending team member today!

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.

The Process

How Does a Jumbo Loan Work?

  • If you hope to purchase a home with a high price tag — $726,200 or more (certain counties allow 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 Us and We’ll Answer Your Questions

Call Secure Choice Lending at (951) 733-8925 and our loan experts will answer all your questions about Jumbo Loans.


How do I Qualify for 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 45% 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.”

Determine Your Qualifications for Jumbo Loan

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

Our Assistance

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.

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.


Looking to Refinance?

Refinancing can be a confusing process. We’ll ensure you find it smooth and easy to adjust your existing debt obligations for your benefit.