Buying a high-value home with a jumbo loan, step by step
Buying a home above the conforming limit
In brief
A purchase needs a jumbo loan when the amount you borrow is above the conforming loan limit for the home's county. Jumbo lenders set their own rules, so expect closer review of your reserves, income and the appraisal than on a typical loan. Buyers who gather documents early and build extra time into the contract tend to have the smoothest closings.
Last reviewed against the primary sources listed below.
ToolReadiness checkFive questions before you write an offer.Step 1Is it jumbo?Compare the loan, not the price.Step 2Cash reservesWhat lenders want to see left over.Step 3AppraisalsDistinctive homes, fewer comparables.Step 4DocumentsThe paper trail.Step 5TimelineContract dates that fit.Step 6Making the offerContingencies and timing.New guideSecond appraisalsWhen a jumbo lender may require a second appraisal and what it means f.New guideBonus and stock incomeHow lenders count bonus, commission and stock-based pay toward jumbo q.GlossaryKey termsPlain definitions with sources.GuideDown payment sourcesWhich funds lenders typically accept for a jumbo down payment and how .GuideBuy before sellingHow lenders count two housing payments and what bridge options exist.PrintableLender questionsQuestions to bring to any lender, ready to print.
How to use this guide
Work through the steps in order, or start with the readiness check if you are close to making an offer. The conforming limit for each county is published by FHFA.