What is it?
A Jumbo Loan is a mortgage where the loan amounts exceeds the conforming conventional loan limits. Because such a large amount is being borrowed, lenders often charge slightly higher interest rates
These loans are typically harder to qualify for than conforming conventional loans but they can offer competitive interest rates and it is a convenient way for a borrower to secure the money they need to purchase an expensive home.
Components of a Jumbo Loan includes:
Higher loan amount
Low down payment
Jumbos come with competitive interest rates
A solid credit score is required
A high annual income will be required
Cash reserves will be required