Jumbo Mortgage Lenders

Jumbo mortgage lenders offer financing for homes with loan amounts greater than the Fannie Mae or Freddie Mac conventional loan limits. It is possible to find a jumbo loan to purchase a home of up to $5 million or more.

Lenders who offer jumbo mortgages have adjusted their requirements and interest rates since the spring of 2020. Here are the changes that have occurred with the jumbo mortgage lenders in the industry:

There are fewer lenders offering jumbo mortgages
Many lenders lowered their maximum loan sizes
Interest rates for jumbo mortgages are at a premium
Some jumbo lenders are asking for a larger down payment

Although the jumbo mortgage lending guidelines have been tightened, there are lenders who can help finance your home.

If you complete this short form, we can help to determine which lender can provide financing for your jumbo mortgage. This is just to see who is the best fit without the need to pull your credit report.

What is a Jumbo Loan?

A jumbo loan is any mortgage that is larger than the conforming loan size of $548,250. There are some high cost areas in the United States in places like California or the Northeast where the cost of living is also higher.

Jumbo loans can be found in various formats including the traditional 30 year fixed, 15 year fixed and also in an adjustable rate mortgage.

Jumbo Loan Rates

The interest rates for jumbo mortgages are often higher than what you may find for a conforming mortgage size. Depending upon the lender, the rate can be up to 1% higher than a conventional loan. Today, the average interest rate for a 30 year fixed jumbo mortgage is 3%.

Jumbo interest rates for the 15-year fixed and the adjustable rate jumbo mortgage will be lower than what you will find for a jumbo 30 year fixed mortgage.

Jumbo Mortgage Lenders

Referenced below are just a few of the popular lenders who offer jumbo mortgages. Each will have their pros and cons and their rates may not be the most competitive. There are lenders not referenced below who may be a better fit for your loan scenario.

Chase Jumbo Mortgage – Chase will require a larger down payment, a lower debt to income ratio, and more payment reserves for their jumbo mortgage program.
PNC Jumbo Mortgage – PNC offers jumbo loans up to $5 million in both fixed and adjustable rate options. Their fees can be as much as 3%-5% of the loan amount.
Wells Fargo Jumbo Mortgage – Wells Fargo offers jumbo mortgages in both a 30yr and 15yr fixed plus a 10yr and 7yr adjustable rate mortgage. The Wells Fargo jumbo mortgage rates are competitive but only if you have extremely high credit scores and a large down payment.
Bank of America Jumbo Mortgage – Bank of America jumbo mortgage rates may be competitive but you will likely have to pay points. Their maximum loan amount is $2 million and the down payment requirement for that is 20%.
Citi Jumbo Mortgage – Citi does not indicate what their jumbo mortgage program requirements are on their website. However, their published rates seem to be less competitive than some of the other companies who offer Jumbo loans.
Sofi Mortgage – Sofi used to offer jumbo loans up to $3 million with as little as 10% down. However, they recently stopped offering jumbo loans due to economic conditions that changed as of the spring of 2020. Meanwhile, they do not openly publish their rates and you need to create an account to see them.
Better Mortgage Jumbo Rates – Better mortgage is not providing any information online about their jumbo mortgage program or the requirements. You need to apply to find out whether their program is a fit for you.

If you are shopping for a jumbo mortgage, let us help you to find the best fit at a competitive rate. Simply complete this loan scenario form and we will get back to you with a few options.

Jumbo Mortgage Lenders for Investment Properties

There are various private jumbo mortgage lenders who offer jumbo mortgages for investment properties. You can expect the rate and terms to be unique to each investment opportunity and the experience level of the borrower.

It may be possible to get mortgages greater than $5 million for investment properties. If you are looking to flip homes, then you also may be able to borrow the funds needed to complete the rehab. Read our article on fix and flip loans for more information on that topic.

If you are looking to finance an investment property with a jumbo loan, then we can absolutely help with your mortgage.

Jumbo Wholesale Lenders

There are wholesale lenders who offer jumbo loans. These lenders do not typically work directly with consumers but instead work exclusively through mortgage brokers. While some people believe working with a direct lender provides them with the best deal, that is not always the case.

Many brokers can access great jumbo mortgage programs through jumbo wholesale lenders. In many instances, the broker’s wholesale lender will have better rates than going direct to one of the big banks.

5% Down Jumbo Loan

There are a few jumbo mortgage lenders who offer a 5% down jumbo mortgage program. However, guidelines are changing rapidly in the industry and the options to secure a jumbo loan with just 5% down are becoming scarce.

You can expect lenders to have overlays which would require a lower DTI or much higher reserves than what you may expect from a traditional mortgage. You may also pay a rate premium when putting down just 5%.

Some lenders offer an 80/15 mortgage product which means you have a 1^st mortgage for 80% of the purchase price, a second mortgage for 15% of the purchase price, then a down payment of just 5%. Doing this would also eliminate the need for PMI.

Jumbo Interest Only Mortgage Rates

Jumbo interest only mortgages require an interest only payment for the first 10 years, then the principal must be paid down over the remaining 20 years. Jumbo interest only mortgage rates are slightly higher, but the monthly payment will be much lower.

In this example below, you can see the interest rate difference between the two jumbo rate options. However, the jumbo interest only payment is much lower.

Jumbo mortgage rate 2.75% = total payment of $4,082
Jumbo interest only rate 3% = total interest only payment of $2,500

In this example, you would save $1,582 each month in monthly payments. Keep in mind, many lenders would require you to qualify for the principal and interest payment of $4,082.

Are there jumbo loan limits?
There are jumbo loan limits that are typically set by each lender. They decide what their maximum jumbo loan amount will be.

Do you have to pay points for a jumbo mortgage?
In most instances you will likely need to pay points or an origination fee when financing a home with a jumbo loan. When comparing mortgage rates and offers, you should take that into consideration.