Jumbo Loan Requirements.

Because a jumbo loan means you’re taking out a larger-than-typical mortgage, lenders have stricter guidelines than they might for a traditional loan. They will examine several aspects of your financials to assess whether you can afford a bigger mortgage and if you are likely to pay it back on schedule.

Lenders will look for qualities like a good, steady income, strong credit score and credit history, and low debt-to-income (DTI) ratio, among other benchmarks. This is because they want to know you can afford higher monthly payments and typically higher interest rates that come with jumbo loans as opposed to traditional mortgages.

Keep in mind, while a 20% down payment may not be required for conforming loans, some lenders require 20% (or more) for jumbo loans. This gives lenders increased confidence that you have skin in your new housing game.

For more information call Abdi Mohammadian at 925-785-7851.