Jumbo loans for higher-priced homes

How jumbo loans work

Conforming loan limits are set each year and differ by county. When your loan amount goes above that limit, you need a jumbo loan. Jumbo lenders often review income and assets closely and may require more reserves and, sometimes, two appraisals for higher loan amounts.

Who jumbo fits

• Buyers in higher-cost areas
• Move-up buyers purchasing larger homes
• Second home buyers
• Self-employed borrowers, since non-QM jumbo options may be available through some wholesale lenders, subject to guidelines

Loan options

Fixed and adjustable terms, purchase, refinance and cash-out. Interest-only or non-QM jumbo programs using bank statements or assets may be available through some wholesale lenders, subject to guidelines.

Documents you may need

Pay stubs, W-2s or tax returns, bank and investment statements, and documentation of reserves. Non-QM jumbo programs may use alternative documentation. Requirements vary by lender.

Pros and cons

Pros: Finance higher-priced homes in one loan; a range of term options; non-QM jumbo options for self-employed borrowers may be available through some wholesale lenders, subject to guidelines.

Cons: Stricter credit and reserve guidelines; larger down payment often required; more documentation; guidelines vary widely.

Why shopping matters

Because jumbo guidelines aren't standardized, pricing and requirements can differ a lot between lenders. We compare jumbo programs from wholesale lenders.

Getting ready for a jumbo loan

Pull together recent statements for every account you plan to use, since lenders look closely at where your down payment and reserves come from. Avoid moving money between accounts without a paper trail. If you're self-employed, ask early whether a tax-return jumbo or a non-QM jumbo fits you better, because the documentation differs.

How Turn Times helps

Turn Times is a licensed mortgage broker, not a lender. Instead of offering one company's products, we compare jumbo loan options from wholesale lenders and walk you through the differences in plain language. Here's how it usually goes:

1. Tell us your goal. A short conversation about the property, your timeline and what matters most to you.
2. We search pricing across wholesale lenders. We look at which wholesale lenders' guidelines may fit your situation, and a licensed loan officer compares their pricing and terms.
3. You choose. We lay out the trade-offs so you can pick the option that works for you.
4. We manage the loan to closing. Appraisal, title, conditions and updates along the way.

Every loan is subject to the lender's underwriting, and approval isn't guaranteed. We arrange loans for properties in California and Colorado.

Frequently asked questions