Jumbo mortgages are a completely different category of home mortgages but also similar to conventional mortgages in some ways. Jumbo mortgages are used when the loan amount is over $647,200. The underwriting is similar but sometimes guidelines ask for a little higher credit score and a few more months of reserves in the bank because there is more at stake for the Lender with a Jumbo loan.
Usually guidelines are a tad tighter compared to conforming loans (under $647,200) because there is more of a risk for the lender because the loan amount is higher and if the loan goes into default, they lose more money.
Guidelines usually require at least a 680 median credit score with proof of income and about 10-12 months reserves after closing.
But on the flip side, for the right customer, the PRIME JUMBO program can lend 96.5% on a Jumbo up to 3 million.
If you need a larger loan, we have other investors who lend up to $8 million.