What Makes Jumbo Loan Different?

• The max loan amount is now $2.5 million (previously $2 million)
• Borrowers can now finance investment properties (previously only primary residences and second homes)
• We only need one appraisal, in most cases
• Your debt-to-income ratio (DTI) can be as much as 45% (previously 43%)
• Your loan-to-value ratio (LTV) can be up to 89.99% (previously 80%)
• Minimum FICO® Score is now 680 (previously 700)
• Cash-out refinance is now allowed on second homes and investment properties (previously only primary residences)
• Self-employed people don't need to provide as many documents
• With fewer requirements, you can easily apply online

How Do Jumbo Loans Work?

• Jumbo Smart loans are great for people who need to borrow up to $2.5 million to buy or refinance a home. These larger loans are often known as jumbo loans
• Jumbo loans are also called nonconforming loans because they're over conventional loan limits. Nonconforming loans also don't meet Fannie Mae or Freddie Mac's purchasing standards
• In most of the country, the 2022 conventional loan limit is $647,200. The limit is $970,800 in many high-cost areas, but loan limits vary. It's important to look up conforming loan limits in your area
• If you need a loan greater than the conventional loan limit in your area, then our Jumbo Smart loan may be a good option for you

What Are The Qualifications For a Jumbo Smart Loan?

To qualify for a jumbo mortgage, you'll need:

• A down payment greater than 10%
• A minimum FICO® Score of 680
• A debt-to-income ratio (DTI) of no more than 45%. Estimate your DTI by adding your monthly debt payments (such as credit card and car payments) and dividing the total by your monthly income before taxes
• Money to cover closing costs, which are about 2%–6% of the purchase price
• A maximum loan-to-value ratio (LTV) of 89.99% (previously capped at 80%)