Jumbo Loans

A jumbo loan is mortgage loan that exceeds the conventional conforming loan limits set by Fannie Mae and Freddie Mac. These limits are the maximum value of a single mortgage that these two government-sponsored enterprises will purchase from lenders. For a single family residence, this loan limit is typically $417,000 but can reach $625,500 in what are considered high-cost areas. The Pine Creek Financial Group specializes in offering jumbo loans throughout Colorado at the most competitive rates.   
 
Jumbo loans can be used for a number of properties including primary residences, vacation homes, or investment properties. They are also available in a variety of terms as both fixed-rate and adjustable-rate loans. Since the conforming loan amounts are being exceeded, and therefore cannot be purchased by Freddie Mae or Fannie Mac, the loans tend to be a bit riskier. This means that lending criteria and requirements can be more stringent for a Jumbo loan.

Jumbo Loan Lending Requirements

Credit Score – Jumbo loans typically require a more favorable credit score that other loans. To qualify for a jumbo loan, a credit score of at least 680 will be typically required. In some instances, the requirements may be higher based on the borrower’s individual circumstances or the lender’s criteria.

Income and Debt-to-Income Ratio - In order to qualify for a jumbo loan, you will need to prove you have the income and reserves necessary to cover the payments. Income will need to be proven with documentation such as W2 forms and recent paystubs. If applying for a qualified jumbo loan, your debt-to-income ratio must be 43 percent or less. You may also apply for a non-qualified jumbo loan, but you will still need to verify the ability to repay the loan.

Down payment – Up until recently, many lenders have required at least 20 percent down for a typical jumbo loan. Down payments have been reduced in some instances to as low as 10 percent. As a borrower, you will of course need the income and assets to support the lowered down payment requirement.

Be prepared to provide documentation to prove you have the ability to repay the loan you are applying for. This can include proof of income, liquid assets, non-liquid assets, and other loans that you may hold.     

A jumbo loan can be the perfect option for those looking to buy a higher-priced home, investment property, or even a second home. The Pine Creek Financial Group works closely with borrowers throughout the Colorado Springs, Denver, Greeley, and Fountain areas to help them obtain the most favorable rates and conditions on jumbo loans. Our team of experts is here to help you with a financing solution that meets all of your needs.


Apply Now

Return to Loan Options

 
  • twitter
  • facebook
 

Quick Quote

 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
 
No errors
 
 
No errors
 
 
No errors
 
 
No errors
 
 
 
secure

Trusted. Experienced. Secure.