A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $647,200 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $970,800).

Jumbo mortgages are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans. A jumbo loan will typically have a higher interest rate, stricter underwriting rules and require a larger down payment than a standard mortgage.

Benefits and Considerations

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• Higher Purchase Limits - Jumbo mortgages can exceed the conforming loan limit, currently $548,250 in most parts of the United States.
• Competitive Rates - Jumbo loan rates have reached historic lows in recent years, and the interest on loans up to $1 million may be tax-deductible.
• Second Mortgage - Many jumbo mortgage lenders may allow you to take out a second mortgage for a combined loan-to-value ratio of up to 90 percent.

Requirements and Qualifications

• Credit History - Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 700 or higher.
• Financial Strength - When applying for a jumbo mortgage, the maximum debt-to-income ratio for jumbo for loans is 45 percent, and the required reserve amount for jumbo loan borrowers can be as high as 20 percent of the value of the loan.
• Down Payment - There is no private mortgage insurance option with a jumbo mortgage, so the required down payment will be larger - typically 20 percent.
• Property Appraisal - The property appraisal must support the purchase price for the home and the mortgage the borrower wants.

Jumbo mortgages are a good solution for borrowers who are looking to buy a higher-priced home. Compare mortgage options to learn more on your own, or contact a mortgage loan originator to find out whether a jumbo loan may be right for you.

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice.

Any rates shown above are sample rates for the purchase of a single-family primary residence based on a 60-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your guaranteed rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.

To guarantee a rate, you must submit an application to Austin First Mortgage and receive written confirmation from a mortgage loan originator that your rate is locked. Application can be made online.

Jumbo Loans - Any sample APR calculation on this page assumes a $500,000 loan with a 20% down payment and borrower-paid finance charges of 0.862% of the loan amount, plus origination fees if applicable. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Jumbo rates are for loan amounts exceeding $647,200 in the states we serve.