If you are a home buyer looking to get approved for a jumbo loan, you’ll need to understand what it takes to get approved. Jumbo mortgages are typically used to finance high-end properties and can come with tighter lending standards when compared to standard conventional loans.
To get approved for a jumbo loan, you’ll need to have a decent credit score, manage debt-to-income ratios, and have a minimum 5%+ down payment. The actual credit score requirements can vary greatly depending on the down payment and final loan amount. But generally speaking, borrowers should have a 660+ credit score when financing above 90% loan to value. Buyers can read more about the latest 2025 Jumbo down payment requirements here.
The majority of Jumbo programs today require full documentation for qualifying. This means the lender will look closely at look at your employment history, income documents, and assets to ensure that you have the financial stability to repay the loan. Debt-to-income ratios are a key factor when it comes to qualifying. If your debt-to-income ratio is too high, you may need to pay off some of your existing debts to improve your chances for approval.
Many home buyers today are self-employed, and the income documentation required by conforming loans can be a challenge. For these borrowers, bank statement loans can be helpful as they permit the borrowers to qualify based on a 12-month average of their actual business bank deposits.
The property must also meet specific requirements for safety and soundness in order to be eligible for a jumbo loan. These standards apply to nearly all conventional and government-backed home loans today. Of course, a satisfactory home appraisal will also be required in order to verify the value of the property. In select cases with higher loan amounts exceeding $3m two appraisals may be called for.
The process for a jumbo mortgage can be more involved due to the higher loan amounts and risk to the mortgage company. It’s important to work with a reputable lender who can guide you through the process. With the right preparation and guidance, you can make your dream of owning a luxury property a reality. Buyers that have questions can connect with us 7 days a week by calling the number above, or just fill out the Quick Contact Form
About the author: Jamie Chambers has been a mortgage professional and data researcher for over 21 years. With vast experience in all sides of the banking, broker, and correspondent lending side of the business.
