• Home
  • About Us
  • Programs
  • Our Team
  • Contact
  • Live Chat
  • More
    • Home
    • About Us
    • Programs
    • Our Team
    • Contact
    • Live Chat
  • Home
  • About Us
  • Programs
  • Our Team
  • Contact
  • Live Chat
Luxury real estate in Florida with firepit and palm trees
ALL ABOUT

JUMBO LOANS

Fannie Mae and Freddie Mac are the two government sponsored entities who regulate the conventional conforming loan industry, and therefore determine what the price limits of conventional mortgages. That doesn't mean that a borrower can't request a sum greater than this, it just means they will have to use a jumbo loan.

Apply for a jumbo loan

Jumbo Loan Quick Facts

Current Loan Limit

No Strong Rule With Interest Rates

Generally High Down Payment

In 2021, the current conforming loan limit is $548,250 with a 150% increase in high-cost areas, which equals to $822,375 . 

Generally High Down Payment

No Strong Rule With Interest Rates

Generally High Down Payment

Due to jumbo loans being riskier for lenders, typically a large down payment is involved with securing a jumbo loan, as luxury properties may take longer for a lender to sell at full price if their loan were to default. 

No Strong Rule With Interest Rates

No Strong Rule With Interest Rates

No Strong Rule With Interest Rates

Typically, a jumbo loan will come with a higher interest rate than a conforming loan, but that isn't always the case. Rates may vary based on lender, specific loan program and more. 

JUMBO LOAN QUALIFICATIONS

Credit Score

Depending on the lender, you may be required to have a FICO score anywhere between 700-720, generally speaking. 

Property Types

Jumbo loans can be used with primary residences, second homes and investment properties, as well as for condos, homes, duplexes and more. In fact, there are no federal restrictions on what kind of property can be purchased with a jumbo loan.


When going with a VA jumbo loan, your property will still have to meet the specific VA qualifications as well.

Down Payment

Down payments do vary from lender to lender and program to program, but generally speaking, be prepared to put down 20% of the purchase price of your property when using a jumbo loan.


In regards to VA jumbo loans, if your credit score is below 740, you will be required to put down a 5% minimum down payment. 

A back yard of a luxury home and its pool

THINGS TO CONSIDER ABOUT JUMBO LOANS

In Some Instances, Lenders Will Require Cash Reserves:


Would you let someone borrow money who didn't have the ability to make consistent payments until the loan was repaid in full? Of course you wouldn't! While every lender has different requirements and conditions with their jumbo programs, ensuring a borrower has up to 12 months' worth of expenses in their reserves is not uncommon in the slightest. However, some lenders may consider up to 70% of a retirement account, and depending on the situation and the lender, business and gift funds may also be considered. 


Higher Closing Costs:


With a conventional mortgage, closing costs generally range between 3 and 6 percent of your total home value. With a jumbo loan, this most likely will be significantly higher, but how much will depend on many factors, including the lender you get your loan from.


Your Income Must Be Consistent:


Like I said earlier, would you want to loan someone money who you weren't sure was going to be in a position to pay you back. Obviously, the more money one is borrowing, the more true that previous statement becomes. While the saying "2 + 2 + 2 will get you through" is true for a conventional mortgage, you may need a lot more than your last two months bank statements, last two tax returns and last two paystubs to be approved for a jumbo loan.


Credit History Is Twice As Important:


If you're thinking of a jumbo loan, I hope you have both good credit and are free from any bankruptcies and foreclosures. If there's anything in your past that may give a lender a second thought about your ability to repay, you may have a difficult time getting approved for a jumbo.


The VA Funding Fee:


If you happen to be getting a jumbo loan through a VA program, the VA funding fee will be larger that in a conventional loan. How much of an increase is contiginent on a few factors, such as your down payment, if this is your first VA loan or not, but generally the funding fee is somewhere in the 1.4% to the 3.6% of the loan amount range. Seller concessions may lighten the fees of buyers however.

About Coastal Funding

In business for over 20 years, Coastal Funding Corporation is known for our determination to acquire as many lending partners as possible. We understand not every loan program fits every person, and on top of that, every lender has their own specific requirements, meaning the more options we have at our disposal to match you up with, the more likely you are to find not just a loan, but the right loan. 

Call Us

Questions About Jumbo Loans?

COASTAL FUNDING CORPORATION'S BRIAN ZELDEN

Call Brian Today: 850-356-3845

Send Brian an email

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Cancel

Equal Housing Lender. © 2004-2023 Coastal Funding Corporation Inc. NMLS: 103035 Trade/service marks are the property of Coastal Funding Corporation Inc. or their respective affiliates and/or subsidiaries. Some products may not be available in all areas. This is not a commitment to lend. Restrictions apply. All rights reserved. Terms and Condition Apply. Licensed in  AL, FL, SC, TN.

  • APPLY NOW
  • About Us
  • Programs
  • Locations
  • Our Team
  • Gallery
  • Careers
  • Links
  • MLO
  • Required Items Checklist
  • VA Appraisals
  • FORMS
  • Calculators
  • Live Chat

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

Accept