JUMBO LOAN
Big dreams mean big loans, and a Jumbo loan can get you there.
What is a Jumbo Loan?
When the home of your dreams is in an extremely desirable, higher priced real estate market, or your growing family demands a larger home, a Jumbo loan may be right for you. The exclusive community, the premium county, or the upgraded house to fit your growing family are all hallmarks of a Jumbo loan.
Jumbo loans are also considered non-conforming loans because they exceed the conforming loan limit of $417,000. Some counties may vary in conforming loan limits, so our experienced advisors will help you decide if your loan amount fits into the limits, or if this loan is the right option for you.
Interest rates on these loans tend to be higher, due to the increased risk associated with larger loan amounts, and because the loans cannot be sold to Freddie Mac or Fannie Mae on the secondary market. Some borrowers may choose to pay a larger down payment to get their loan size below the conforming limit. Other borrowers are comfortable paying a higher monthly payment instead of putting the additional money down. For these borrowers with higher monthly income but less available savings, this loan is the perfect solution.
RATES
These loans are available in a variety of fixed and adjustable rate terms
REQUIREMENTS
These loans tend to have higher down payment and cash reserve requirements
LIMITS
For loans above the conforming loan limit up to $5 million
We’re here to help.
Our loan advisors at American Pacific Mortgage can help you determine if your loan amount falls outside of the conforming limits. While piggyback second mortgages and larger down payments could bring your loan amount down to conforming limits, you may choose to utilize a Jumbo loan instead. We will help you understand your options so you can decide which loan will best fit your needs.
Jumbo Loan FAQs
Q: What is a jumbo loan?
A jumbo loan is a type of mortgage used to finance homes that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. These loans are designed for higher-priced properties and typically require stronger credit and a larger down payment.
Q: What are the requirements for a jumbo loan?
Jumbo loans usually require a higher credit score (typically 700+), a lower debt-to-income ratio, and a down payment of at least 10–20%. Lenders also review income stability and overall financial strength before approval.
Q: When should I consider a jumbo loan?
You may want to consider a jumbo loan if you’re purchasing a high-value home that exceeds the conventional loan limit in your area. It’s a good option for qualified borrowers looking to buy luxury or large homes in competitive California markets.
Q: When does a home in Roseville or Placer County require a jumbo loan?
A jumbo loan comes into play when the loan amount exceeds the conforming limit for your county. As home prices in Roseville, Rocklin, Loomis, and the surrounding Placer County area have risen, more buyers find themselves near or above that threshold. A local lender can confirm the current limit and whether your purchase would need jumbo financing.
Q: Are jumbo loan interest rates higher than conventional rates?
Not always. Jumbo rates are sometimes comparable to — or even lower than — conventional rates, depending on the lender, your credit profile, and market conditions. Because jumbo pricing varies more between lenders, comparing options is especially worthwhile.