Jumbo Loan Calculator
Calculate jumbo loan payments for mortgages above conforming loan limits. Jumbo loans are non-conforming loans for high-value properties that exceed Fannie Mae and Freddie Mac limits.
Jumbo Loan Summary
Loan Analysis
Conforming vs. Jumbo
Jumbo Loan Requirements and Considerations
Jumbo Loan Basics
- Non-Conforming: Not guaranteed by Fannie Mae/Freddie Mac
- Higher Limits: Vary by county, typically $766,550+
- Portfolio Loans: Held by banks, not sold on secondary market
- Higher Rates: Typically 0.25-0.5% higher than conforming
- Stricter Qualification: Higher credit scores and down payments
- Regional Variation: Limits vary by housing market
Qualification Requirements
- Credit score: 720+ typically required
- Down payment: 20-30% usually needed
- Debt-to-income: 43% or lower
- Reserves: 6-12 months of payments
- Income stability: 2+ years employment
- Property appraisal: Required
Advantages & Disadvantages
Advantages:
- Access to high-value properties
- Custom loan terms possible
- No PMI required
- Portfolio lender relationships
- Local market expertise
Disadvantages:
- Higher interest rates
- Stricter qualification
- Limited lender options
- Higher closing costs
- Longer approval process
2024 Conforming Limits
- Single-family: $766,550
- Two-family: $981,500
- Three-family: $1,186,650
- Four-family: $1,474,400
- Higher in high-cost areas
Understanding Jumbo Loans
Jumbo loans are mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. These non-conforming loans are designed for high-value properties in expensive housing markets and come with different qualification requirements and pricing.
What Makes a Loan "Jumbo"?
The term "jumbo" refers to the size of the loan, not the house. If your loan amount exceeds the conforming loan limit for your county, it becomes a jumbo loan. These limits are adjusted annually and vary by location based on local housing costs.
Jumbo vs. Conforming Loans
Conforming loans are standardized mortgages that can be sold to Fannie Mae and Freddie Mac. Jumbo loans are larger and remain with the originating lender. This difference affects pricing, qualification requirements, and available loan features.
Pricing and Terms
Jumbo loans typically have higher interest rates than conforming loans, often 0.25% to 0.5% higher. They may also have different loan terms, fees, and qualification requirements. However, rates have narrowed in recent years as more lenders compete for jumbo business.
Qualification Challenges
Jumbo loans require stronger financial profiles than conforming loans. Lenders look for higher credit scores, larger down payments, lower debt-to-income ratios, and substantial reserves. The qualification process is often more thorough and time-consuming.
Portfolio vs. Agency Jumbo Loans
Some jumbo loans are portfolio loans held by banks, while others may be securitized. Portfolio loans often offer more flexibility in underwriting and terms but may have higher rates. Agency jumbo loans follow more standardized guidelines.
Tip: Jumbo loans are necessary for high-value properties but come with higher costs and stricter requirements. Shop multiple lenders and consider local portfolio lenders who may offer competitive terms. Be prepared for a more thorough qualification process.