Jumbo Mortgage Loan Down Payment Requirements

What is a Jumbo Loan?

Jumbo loans, quite simply, are loans that are too large to be eligible for purchase by Fannie Mae or Freddie Mac. In an effort to limit risk, Congress has set a threshold for the maximum loan size that Fannie or Freddie can purchase. This threshold is known as the conforming limit, and it varies by locality between $484,450 and $726,525 in highe-cost areas. (The conforming limit for loans insured by the FHA goes up to $765,600 in some areas.)

Who issues Jumbo Loans?

Because they are not eligible for purchase by Fannie or Freddie, they are typically issued by private investors. These investors are either portfolio lenders that keep the jumbo loan in their investment portfolio or lenders that will securitize the jumbo loans for sale to other investors (although it is worth noting that since the housing crash, private mortgage securitizations are fairly rare).

How much will I need for a Jumbo Loan down payment

The short answer is that it depends upon the investor, that investor’s appetite for risk, the size of the loan, and your individual situation.

Total Mortgage has a wide variety of jumbo loan investors, and each investor has their own underwriting guidelines that dictate how much money you will need for a down payment on your jumbo loan. Among the determining factors will be your credit score, your debt-to-income ratio, your employment history, reserve requirements, and a variety of other factors.

Generally speaking, down payment requirements are going to be greater than those on conforming loans, but some of our investors will issue jumbo mortgages with as little as a 10 percent down payment.

Contact us to consult with one of our licensed mortgage professionals

We are jumbo loan experts, and we can help you find a jumbo loan option with a low rate that will suit your individual situation.

Learn more by using our apply form.