How to Get a Jumbo Mortgage Loan

In the United States, a jumbo mortgage is a mortgage with a loan amount above conventional conforming loan limits. This standard is set by the two government-sponsored enterprises Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender. Fannie Mae (FNMA) and Freddie Mac (FHLMC) are large agencies that purchase the bulk of U.S. residential mortgages from banks and other lenders, allowing them to free up liquidity to lend more mortgages. When FNMA and FHLMC limits don't cover the full loan amount, the loan is referred to as a "jumbo mortgage". The average interest rates on jumbo mortgages are typically higher than for conforming mortgages.


  1. Image titled Get a Jumbo Mortgage Loan Step 1
    Make a down payment of at least 20 percent for a purchase (or have at least 20 percent equity in a refinance).
  2. Image titled Get a Jumbo Mortgage Loan Step 2
    Document your income.
  3. Image titled Get a Jumbo Mortgage Loan Step 3
    Get an adjustable-rate loan, because fixed-rate jumbos are relatively rare.
  4. Image titled Get a Jumbo Mortgage Loan Step 4
    Make sure your monthly mortgage payment is no more than 38 percent of your income before taxes.


  • Even with today‚Äôs economy speaking louder than words, many are still looking for a jumbo mortgage loan. Perhaps it is to purchase their first home or maybe it is for a second mortgage. If you are purchasing your home for the very first time, it is possible that you may have heard the term jumbo loan mortgage or jumbo mortgage loan from your agent. Because many of us do not understand all of the terms that come along with getting a loan for a home, it is important that you ask questions so you understand exactly what they are talking about when they come at you with a lot legal jargon
  • Whether you are aware of it or not, there are limits when it comes a conventional type loan. If you mortgage goes above these limits than it is considered a jumbo mortgage loan. If you are wondering where these limits come from, they are set by two very large agencies that are sponsored by the government. These jumbo loan mortgage limits are set by Fannie Mae and Freddie Mac. The reason for these limits is because they purchase their mortgages in bulk. This of course allows them to be able to do more lending for those that are looking for a mortgage. This can be a blessing for those that are looking to purchase a home for the first time. If you need a loan that is higher than the limits that have been set than it is considered to be a jumbo mortgage loan.
  • You also need to know that when you get a Jumbo Loan Mortgage that the interest rate is typically higher than a loan that is within the limits. This means that you could be making a higher payment than you originally planned on and for a longer period of time. Many lenders do not want to work with a jumbo mortgage loan because they can be harder to obtain and are a very high risk for lenders.

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Categories: Mortgages and Loans