A jumbo mortgage are home loans that exceed conforming loan limits of $417,000.00 and High balance loan amounts of $625,500.00 in specific counties.

Due to the size of the loan amount, there are more stringent guidelines pertaining to the jumbo loans.  Here is a partial list. It is as follows:

Credit History:  Typically credit score must be above 700 or higher.

Financial Strength: When applying for a jumbo loan, the maximum debt-to-income ratio is 43%, and reserves can be as high as 20% of the value of the loan depending on other factors such as credit.

Down payment:  There is no private mortgage insurance option with a jumbo loan, so a down payment of 20% or more will be necessary.