Jumbo Loan

Trusted Financing for Larger Loan Amounts

5280Lend.com works with clients in Colorado to secure jumbo mortgages. Our expert team has the knowledge and experience to guide you through your home loan process.

As mortgage experts in Colorado and the Denver Metro area, we’ll thoroughly analyze your situation to determine the best type of mortgage and loan term to fit your budget and needs. We offer personalized service to give you great advice and peace of mind.

What Is A Jumbo Loan?

A jumbo loan is a type of mortgage used to finance a home with a higher price. In most cases, a conventional loan has a maximum amount set by Fannie Mae and Freddie Mac. When the loan amount exceeds this limit, financing options outside of the FNMA and FHLMC purview must be considered. These are appropriately called “jumbo loans.”

Jumbo loans are also called non-conforming conventional mortgages. Because Fannie Mae and Freddie Mac don’t insure or guarantee these loan types, they usually have more restrictive features and requirements.

We work extremely hard with homebuyers to determine the best type of loan for your home.

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How Jumbo Loans Work

Homebuyers and homeowners who find or have a home that is a bit above the typical price tag can find a multitude of financing options using a jumbo loan.

Jumbo loans work very much like other home mortgages, however, there are some differences. Down payment requirements are one of the biggest differences between these and “conforming loans.” Jumbo loans usually require at least 10% and sometimes 20% down payments.

Credit score requirements are usually a bit higher than “conforming loan” types as well and usually start at 660 or 680. Another requirement that some jumbo loans have is a payment “reserve requirement” mandating that a borrower prove that they have three to12 months of mortgage payments in a savings account or retirement account.

Jumbo loans provide an excellent financing solution for the higher priced homes that we see here in Colorado.

What Are the Requirements for A Jumbo Loan?

Jumbo loans offer financing for higher than average loan amounts. Because they are not insured or guaranteed, they may have some of the following additional requirements:

A minimum credit score of 660-680. (negotiable for more substantial down payments).
A down payment of at least 10 to 20 percent (this can depend on other factors).
An average debt-to-income ratio of 38 to 43 percent (this can depend on other factors).
Must provide proof of income.
Provide evidence of both liquid and non-liquid assets (payment reserve requirements).

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Why Work with a Mortgage Bank for A Jumbo Loan?

A mortgage bank understands various loan options and how to evaluate the best solution based on each client’s unique financial situation. Plus, working with an expert lender offers significant peace of mind during the stressful process of buying a new home and refinancing one you might already own.

The experienced professionals at 5280Lend.com guide our clients through each step to find the right financing option, including jumbo loans.

We work with a limited number of clients each month to ensure we continually meet our standards for personalized service. As a local Colorado lender, we understand Colorado loan laws and requirements. You can count on us for support in purchasing your dream home!

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Jumbo Loan FAQs

Who Needs A Jumbo Loan?

A jumbo loan typically fits the needs of homebuyers who require a more considerable mortgage amount. Often used for luxury homes, in recent years, rising home prices have increased the demand for jumbo loans. Conventional loans and many other loan programs limit the amount of the loan size.

Jumbo loans apply to the amount borrowed, not the home’s value. In other words, if a homebuyer purchases a $900,000 home and pays a $600,000 down payment, and only finances a loan amount of $300,000, they would not need a jumbo loan.

We think it’s vital that our clients understand the details of their financing. We’ll work with you to ensure you feel confident in all the associated details and provide you significant options to help achieve that goal.

Are Borrowing Costs Higher on a Jumbo Loan Than on A “Conforming” Loan?

This is a great question with a somewhat unclear answer! Most of the time, Jumbo interest rates are slightly higher than conventional/conforming mortgage rates. Closing costs can be slightly higher too just because many of the costs are tied to the size of the loan. Both things are very much dependent on market conditions and the structure of the loan.

5280Lend.com spends a lot of time analyzing all the potential options that are available in the marketplace of jumbo loans. We work diligently to minimize your total cost (i.e. interest rate and closing costs) of financing your home.

Do I Have to Pay 20% Down with A Jumbo Loan?

Yes, in most cases you will. There are some instances where you can put less down. Lenders will consider “compensating factors” for borrowers with excellent credit scores, significant savings, and great job history. There are also some professions, like doctors, who are afforded smaller down payments given their known job stability.

Financing a higher-priced home requires a more significant upfront investment than purchasing a more affordable home. We will review your finances and discuss options to help you make financing your dream home a reality.

Colorado Jumbo Mortgage Experts

As a trusted Colorado mortgage lender, we are here to help you find the best home loan to help you purchase or refinance the property you desire or own already. Jumbo loans give homebuyers more options when financing their property.

We can help you with mortgage preapproval, and we can determine how current mortgage rates and closing costs will impact your loan.

5280Lend.com works with clients in Colorado and the Denver area to finance their dream homes. We thoroughly analyze your finances and goals to determine if a jumbo loan works for you.