Jumbo Loan Requirements: Everything You Need to Know


Jumbo Loan Requirements: Everything You Need to Know

Jumbo loan requirements are the specific criteria that borrowers must meet in order to qualify for a jumbo loan. Jumbo loans are mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that purchase and securitize mortgages. As of 2023, the conforming loan limit for a single-family home is $726,200 in most areas of the United States, and $1,089,300 in high-cost areas.

Jumbo loans are typically more difficult to qualify for than conforming loans because they are not backed by the government. As a result, jumbo loan requirements are often more stringent. Lenders may require borrowers to have a higher credit score, a larger down payment, and a lower debt-to-income ratio. Jumbo loans may also have higher interest rates than conforming loans.

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