A jumbo mortgage are home loans that exceed conforming loan limits. For most areas, the conforming limit is $417,000.00.
Due to the size of the loan amount, there are more stringent guidelines pertaining to the jumbo loans. Here is a partial list. It is as follows:
Credit History: Typically credit score must be above 700 or higher.
Financial Strength: When applying for a jumbo loan, the maximum debt-to-income ratio is 45%, and reserves can be as high as 20% of the value of the loan.
Down payment: There is no private mortgage insurance option with a jumbo loan, so a down payment of 20% or more will be necessary.
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