Licensed Mortgage Loan Officer · NMLS #2103600 · Nationwide
Jumbo Loans — Financing for Homes Above Conventional Limits
Once a loan amount exceeds the conforming limit set by the FHFA, you need a jumbo loan. Vanessa Schlitt closes jumbo financing for luxury home buyers, high-cost-market purchasers, and self-employed borrowers nationwide.
What Is a Jumbo Loan
Financing Built for Higher-Priced Properties
A jumbo loan is any mortgage that exceeds the conforming loan limit set annually by the Federal Housing Finance Agency (FHFA). That limit varies by county — it's higher in expensive metro markets and lower elsewhere — so what counts as "jumbo" depends on where the property is located. Because jumbo loans exceed what Fannie Mae and Freddie Mac will purchase, they're underwritten by the lender's own guidelines rather than standard conforming criteria.
That doesn't mean jumbo loans are harder to get or more expensive by default. With the right lender, jumbo financing can be just as competitive as a conforming loan, and there's more flexibility to structure the loan around your specific financial picture — including options for self-employed and high-net-worth borrowers.
Qualifying
What Lenders Typically Look For
- Strong credit history (requirements are generally higher than conforming loans)
- Verified income — via tax returns, W-2s, or bank statements for self-employed borrowers
- Cash reserves to cover several months of mortgage payments
- A property appraisal supporting the purchase price
- Down payment amount will depend on credit, reserves, and the specific program
Common Questions
Jumbo Loan FAQ
What is a jumbo loan?
A jumbo loan is a mortgage that exceeds the conforming loan limit set annually by the Federal Housing Finance Agency (FHFA). Because it's larger than what Fannie Mae and Freddie Mac will purchase, it follows different underwriting guidelines than a conventional loan.
What's the difference between a jumbo loan and a conforming loan?
A conforming loan falls within the loan limit set by the FHFA for a given county, while a jumbo loan exceeds it. Conforming loan limits vary by location and change annually, so the exact cutoff depends on where the property is located — Vanessa can confirm the current limit for your area.
Do jumbo loans require 20% down?
Not always. While many jumbo programs historically required 20% down, options with lower down payments exist depending on credit profile, reserves, and the lender's guidelines.
Can self-employed borrowers qualify for a jumbo loan?
Yes. Self-employed borrowers can often combine jumbo financing with bank statement income documentation instead of tax returns, which is common for high-income business owners buying above conforming limits.
Are jumbo loan interest rates higher than conventional loans?
Not necessarily. Jumbo rates are priced based on the lender's risk assessment and can be competitive with, or in some cases lower than, conforming rates depending on market conditions and the borrower's profile.