Start Learninh About Jumbo Loans

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Are you in the market for a new home? If so, you may be wondering about jumbo loans. What are they? How do they work?

In this blog post, we will answer all of your questions and help you to understand everything that you need to know about jumbo loans. Keep reading to learn more!


jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

In order to be considered a jumbo loan, the mortgage must be for an amount that exceeds $484,350. This number is known as the conforming loan limit and it is the maximum loan amount that Fannie Mae and Freddie Mac will insure.

Due to the fact that certain real estate markets are significantly more expensive than others, the conforming loan maximum differs by county. In most counties across the country, the conforming loan ceiling for one-unit homes in 2022 is $647,200.

However, conforming loan limitations are increased to $970,800 in “high-cost areas,” including in the Northeast and on the West Coast, and even higher in a few other locations.


Now that you know what a jumbo loan is, you may be wondering how much money you can actually borrow with one.

The answer to this question depends on a few different factors, including the lender that you are working with and the state in which your property is located.

In general, most lenders will allow you to borrow up to 80% of the value of your home with a jumbo loan. So, if your home is valued at $800,000, you could potentially borrow $640,000.

Of course, you would still need to come up with a down payment and closing costs, which would likely put your total investment in the property closer to $700,000.

It is important to note that the 80% loan-to-value ratio is not a hard and fast rule. Some lenders may be willing to lend you more money, while others may require a smaller loan amount.


One of the biggest benefits of a jumbo loan is that you can put as little as five percent down on your new home.

The lower down payment requirements make jumbo loans an attractive option for many homebuyers, especially those who may not have a lot of money saved up for a down payment.

Of course, there are some trade-offs that come along with putting less money down on your home.

Advantages Of 5% Down Jumbo Loans

  • The obvious advantage of a five percent down jumbo loan is that you will need a smaller down payment. This can make it easier to qualify for a loan and may even help you to get a lower interest rate.
  • Another advantage is that you will have more equity in your home from the start. This can give you some peace of mind in knowing that your home is less likely to go into foreclosure if you run into financial difficulties.

Disadvantages Of A Five Percent Down Jumbo Loan

  • The biggest disadvantage of a five percent down jumbo loan is that you will have to pay Private Mortgage Insurance (PMI). This insurance protects the lender in case you default on your loan.
  • Another disadvantage is that a five percent down payment means that you will have less equity in your home. This can make it more difficult to sell your home in the future or refinance your loan.


Lending Warehouse has many unconventional jumbo mortgage options available. Here are some requirements:

  • Credit Scores 640+
  • No Income Verification
  • 5% Down Payment Options
  • Available for Rental and Investment Properties

Thanks to programs offered by Lending Warehouse, it is easier than ever for borrowers to get the financing they need.

Contact Lending Warehouse for a FREE consultation

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