Jumbo Loans

What is the minimum down payment for a jumbo loan?

Most jumbo loans require a minimum down payment of 10-20%, depending on the loan amount and property type. Some programs offer as little as 10% down for loan amounts up to $1.5 million, while larger loan amounts typically require 20-25% down. A larger down payment can also help you secure a lower interest rate.

Are jumbo loan rates higher than conventional rates?

Not necessarily. In the current market, jumbo loan rates are often competitive with or even lower than conforming loan rates for well-qualified borrowers. Lenders compete aggressively for jumbo borrowers because they tend to be high-net-worth individuals with strong credit profiles and substantial assets.

What reserves do I need for a jumbo loan?

Most jumbo lenders require cash reserves of 6 to 12 months of mortgage payments after closing. Reserves can include savings, investments, retirement accounts, and other liquid assets. Some lenders may require additional reserves for borrowers with multiple properties.

Can I get a jumbo loan with an adjustable rate?

Yes. Jumbo ARMs are popular because they offer lower initial rates than fixed-rate jumbos. Common ARM structures include 5/1, 7/1, and 10/1, where the rate is fixed for the initial period and then adjusts annually. This can be particularly attractive if you plan to sell or refinance within the fixed-rate period.

Is PMI required on jumbo loans?

It depends on the lender and down payment. Some jumbo programs with less than 20% down require PMI, while others use alternative structures like piggyback loans (80/10/10) to avoid PMI altogether. Your loan officer can help you compare the options and determine the most cost-effective approach.