suburban homeMortgages aren’t one-size-fits-all. Depending on how much financing you need or want for a home, your loan might be classified as a jumbo mortgage. This type of loan comes with unique requirements and benefits.

Jumbo mortgages defined

In the mortgage world, jumbo refers to loans for amounts that exceed the “conforming” loan limit set by the government-sponsored enterprises that purchase many mortgages. As of 2018, the conforming loan limit for 1-unit homes in most of the U.S. is $453,100. In certain parts of the country, this limit is higher (see this map for details). Any mortgage that exceeds the limit for the area where a home is located is a jumbo or nonconforming loan.

How to qualify for a jumbo loan

Qualifying for a jumbo loan comes with stricter requirements than for conforming loans. These higher hurdles typically include greater income, higher credit scores and larger financial reserves. Jumbo borrowers are often expected to have assets that can cover six to 12 months’ of mortgage payments. Down payment requirements on jumbo loans are typically between 10 and 20 percent.

The benefits of a jumbo loan

While it may be harder to obtain, a jumbo loan also offers benefits. The primary benefit, of course, is the opportunity to obtain more financing, which allows for purchasing or refinancing more home – and tying up less cash if the alternative is to make a larger down payment to keep your loan size conforming. Other advantages include the fact that some jumbo loans with less than 20 percent down don’t require mortgage insurance, and adjustable-rate mortgage options may be more widely available with jumbos.

Our jumbo loan options

At Draper and Kramer Mortgage Corp., we are adept at providing jumbo financing. We offer many jumbo loan products, and we underwrite them in-house for faster processing. Our jumbo loan options include the following:

  • Down payments as low as 5% (10% on 2-unit properties)
  • Loans amounts up to $3 million with larger amounts on an exception basis
  • Fixed- and adjustable-rate loans
  • Income qualification based on asset verification


Not everyone needs a jumbo mortgage, but depending on the value of the home you want to finance and your own financial strategy, it may be your best or your only choice for home financing. To learn about your options for jumbo or other types of home financing, don’t hesitate to contact us.