A jumbo loan is a mortgage that exceeds the current conforming loan limit established by the FHFA. Any loan amount above the conforming limit is generally considered jumbo.

Many borrowers assume they need 20% down. In reality, some jumbo programs allow as little as 10% down, while larger loan amounts may require more. The required down payment depends on credit score, reserves, occupancy, and loan size.

Most lenders prefer scores of 700+, although some programs may allow lower scores depending on the scenario. Higher scores generally receive better pricing.

Not always. There have been periods where jumbo rates were actually lower than conforming rates. Pricing depends on market conditions, loan size, and borrower profile.

Yes. Most jumbo loans are used for primary residences, but they can also be used for second homes and investment properties.

Yes. Many jumbo lenders offer options such as:

- Traditional tax return qualification

- Bank statement loans

- Asset depletion programs

- Profit & loss only options in certain cases

This is one of the biggest concerns among Southern California business owners.

There is no set income requirement. Qualification is based on:

- Income

- Debts

- Credit

- Down payment

- Cash reserves

Many borrowers are surprised to learn they qualify for more than expected.

Jumbo lenders often require reserves after closing. Depending on the program, this can range from a few months of payments to a year or more.

Many jumbo programs allow gift funds from family members. Some require a minimum borrower contribution, while others do not.

No. In much of Southern California, an ordinary family home can require a jumbo loan simply because of property values. What was once considered a luxury loan is now common for move-up buyers.

Possibly. There are jumbo and non-QM jumbo programs designed for borrowers with credit events, unique income situations, or higher debt ratios.

Sometimes. Higher loan amounts or unique properties may trigger a second appraisal requirement.

Yes. Jumbo loans can be used for:

- Rate and term refinances

- Cash-out refinances

- Debt consolidation

- Accessing equity for investments or renovations

Yes. Retirement income, investment assets, pensions, Social Security, and asset depletion calculations can often be used.

This is probably the most common misunderstanding.

Conforming Loan: Within standard FHFA limits.

High-Balance Loan: Above standard conforming limits but still eligible for agency financing in designated high-cost counties.

Jumbo Loan: Exceeds all conforming and high-balance limits.