Lenders typically require a minimum credit score of 660 or higher, with higher scores often needed for the largest loan amounts.

Jumbo loans require significant liquid cash reserves to cover mortgage payments. Lenders typically require proof of funds to cover six to twelve months of payments (PITI) after closing costs and the down payment are made.

 Lenders prefer a lower DTI for jumbo loans, often 43% or lower, to ensure the borrower can handle the larger monthly payments.

While a 20% down payment is common, many lenders offer programs with down payments as low as 10% to 15%. A larger down payment can lead to better interest rates.

Yes. Because jumbo loans are not backed by Fannie Mae and Freddie Mac, lenders take on more risk and have stricter requirements across the board.

Historically, yes, but in some market conditions, jumbo loan rates can be comparable to or even lower than conforming loan rates.

Generally, no, especially with a down payment of 20% or more. Some lenders may offer a combo loan (splitting the mortgage into a first and second loan) to avoid PMI on a lower down payment.

Yes, because closing costs are often calculated as a percentage of the loan amount, the fees for a jumbo loan will be higher due to the larger loan size.

Most modern jumbo loans do not have prepayment penalties, but borrowers frequently ask this to be sure.

The Federal Housing Finance Agency (FHFA) sets the conforming loan limits annually, and borrowers need to know the specific limits for their county, especially in high-cost areas.

Yes, jumbo loans offer flexibility for various property types, unlike government-backed programs.

Jumbo loans often involve more extensive manual underwriting, which can sometimes lead to a longer closing process compared to conventional loans.

While the VA does not have loan limits, lenders may set their own maximums. VA-eligible borrowers with sufficient entitlement can use their benefit for loans exceeding conforming limits.