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Jumbo Home Loans — What You Need To Qualify in CA, NV, or CO

If you’re reading this, it’s either because you have big ambitions to own a large piece of property one day, or you’re ready to take the next step towards applying for a Jumbo loan. Homebuyers interested in purchasing a home surrounded by the most beautiful scenery you can imagine, you’ve come to the right place.

A jumbo loan is a mortgage option exclusively used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan in most counties/states is $647,200 (see what your county’s conforming loan limits are here), so any properties priced in a higher bracket require a jumbo loan (this, of course, differs in areas of higher-cost homes).

These thresholds are determined by the Federal Housing Finance Agency (FHFA), but we’ve compiled a shortlist of must-haves if you’re considering spending big on a home. Lenders will need to review a handful of criteria to determine whether you’re eligible — here’s some to keep in mind:

Credit Score

Lenders may require your FICO score to be at least 700, and in some areas/price points as high as 720.

Debt-to-Income Ratio (DTI)

DTI is the total of your fixed monthly debts divided by your gross monthly income, converted into a percentage. DTI for a jumbo loan should be under 43 percent for most lenders, but aim for under 35 percent to give yourself the greatest approval odds.

Cash Reserves

Banks love money, and it’s no surprise that they would feel much more comfortable approving you for a jumbo loan when you can demonstrate that you have a stash of cash in your accounts. Some lenders perk up if they see that you have a full year’s worth of mortgage payments in cash.

Documentation

You’re asking for a decent chunk of change here. Be ready to provide pay stubs, complete tax returns, W-2’s from past employers, 1099’s, and more. While there is definitely more paperwork involved in a jumbo loan approval compared to a conforming loan, it’ll be well worth it when you’ve moved into your new home.

Here’s a handy Jumbo Loan calculator to determine what you’d need to qualify. Of course, each lender, state, and applicant is different, so get started on our home purchase evaluation application today to see what you are eligible for.

Maggie Levin, one of our Principal Loan Officers, is ready to help answer any and all questions that you have about qualifying for a Jumbo loan to purchase a property in California, Nevada, or Colorado. We specialize in properties within the Lake Tahoe area but love working with clients from all over our licensed regions. Reach out and get to know us!