This comprehensive guide will introduce you to the basics of a jumbo loan, creative jumbo loan programs, and how you can qualify for a jumbo or even a super jumbo loan.
A jumbo loan, also called jumbo or non-conforming mortgage, is a type of loan designed for buying high-end properties outside your county’s conforming loan limit as set by the Federal Housing Finance Agency (FHFA). Jumbo loans are used to finance luxury properties in highly competitive markets, such as major cities in Florida.
Unlike conforming loans, jumbo loans are not backed by the secondary mortgage market. That means that Fannie Mae or Freddie Mac cannot purchase and guarantee the jumbo mortgage, which poses an additional risk for the lenders. As a result, the jumbo loan underwriting process and requirements are more stringent.
What amount qualifies as a jumbo loan depends on several factors, including the location and the type of property. For 2026, the baseline conforming loan limit for 1-unit properties is set at $832,750 in most counties. This means that if you need a loan for $832,751 or higher, you need a jumbo loan.
The loan limits may even go higher in areas where housing costs are more expensive and may differ from county to county. For example, a single jumbo loan limit in Florida applies to all counties except for Monroe County, which qualifies for a higher limit. Note that these limits may change from year to year.
Luxury homes comprise the top 10% of properties in the local market, with values starting from $1M in smaller states and counties, to as much as $5M in high-cost areas in the U.S. There are thousands of listed luxury homes in the market waiting for interested buyers.
Jumbo loans can help you buy a property outside your county’s confirming limit, but only to an extent. Because of the inherent risk that jumbo loans carry, most lenders limit their loan amount to $3M. That means that if you want to buy a luxury home worth $5M, you would need to shoulder the excess cost to qualify for a jumbo loan. That is problematic if you do not have cash on hand to pay for the additional $2M on top of the down payment and the closing fees. In cases like this, a super jumbo loan can take over.
Fortunately, there are super jumbo mortgage lenders who specialize in this market. These lenders can finance properties from $3M to $30M. Others may even exceed this amount depending on several factors, including the location, the property type and condition, and your ability to repay the mortgage.
As a buyer or a realtor, getting a hold of ultra-luxury properties could be a real headache unless you understand the super jumbo loan market, its requirements, and underwriting processes.
Imagine a herd of horses. Standing in the middle of the herd is a zebra. No matter how hard it tries, the zebra will not blend in. But that is not necessarily a bad thing. Because zebras need not be horses, they just have to find the things that work for them as they are—zebras.
This same scenario applies to the mortgage world. A horse borrower has a great credit score, is a U.S. citizen, and does not have a lot of debt. These horse borrowers take a huge part of the mortgage pie because major banks easily approve them.
On the other hand, zebra borrowers have many issues preventing them from getting mortgage approval. For example, they are not U.S. citizens, have bad credit scores, or are self-employed and cannot provide documented proof of income. These are reasons for bank disapprovals, giving them another name—the bank turn downs.
Whether you or your client is a horse borrower or a zebra borrower, there are jumbo loan programs suitable for either situation.
Getting mortgage approval when you have stellar credit score history, income-showing tax returns, reliable employment, and minimal debt should not be a problem. In fact, many banks, especially the big U.S. banks, favored this type of borrower during the pandemic. To protect their funds, banks continue to give preference towards the horse borrowers who can comply with all the needed documentation.
Here is a horse-borrower checklist to see if you fit this category:
Assess yourself (if you are the buyer) or your client (if you are a realtor) using the checklist above. If you answered “Yes” to all, then you are indeed a horse borrower. If, on the other hand, you answered “No” to any of the questions, do not be discouraged because there are more creative jumbo loan programs tailored for you.
Most jumbo lenders require higher down payment, interest rate, and closing costs and fees, even for horse borrowers. If you want to consider better offers, we have horse programs with better pricing than some local community banks. You can enjoy:
There are creative jumbo loan solutions for zebras who don’t qualify for conventional mortgages
Zebra borrowers do not qualify for a mortgage loan as easily as horse borrowers do. As a result, zebras feel flawed and discouraged. If they don’t qualify for conforming loans, what more for jumbo loans or, even bigger, the super jumbo loans? Do their “flaws” mean they cannot have that luxury home they have been dreaming of for so long?
The simple answer is no. Though it may sound odd, there are, in fact, plenty of out-of-the-box jumbo loan programs designed to address each “flaw” that limits a buyer’s potential to own their dream home. Remember, not everyone can be a horse borrower, and being a zebra borrower does not always have to be a bad thing. The following are the most common reasons for jumbo loan disapprovals among zebra borrowers:
There are bold and daring jumbo loan programs to cover every zebra scenario. While major banks protect themselves by imposing rigorous requirements, we have programs that dare defy the odds to serve borrowers who are in need of a mortgage for their dream luxury properties.
Our programs can finance up to $15M loan and offer flexible terms too. Depending on your preference and capability, you can enjoy a fixed rate or an adjustable-rate mortgage (ARM). These jumbo loan programs are specifically designed for borrowers and realtors who have been eyeing a luxury property and trying to get a jumbo loan approval but with no success.
So, dear buyers and realtors, here are the answers to the most common questions that bug your mind:
Yes, self-employed individuals can certainly qualify for jumbo loans. Getting jumbo loan approval when you are self-employed may feel like a real challenge, and in most cases, it actually is. But once you find a loan program that works perfectly for your case, everything should go as easily as any traditional loan.
Our jumbo loan programs are designed for self-employed individuals and other entrepreneurs who want to buy a high-end property but do not like to or cannot submit their income tax returns for one reason or another. To address the issue, alternative documentation will be requested to show the borrower’s income. As substitutes for tax returns, W2, or paystubs, our program may ask for the following instead:
This creative jumbo loan program has helped countless self-employed individuals turn their dream luxury home into a reality. As long as you have the capacity to pay, being self-employed should not be a roadblock. See how we helped our self-employed client obtain a $1.275M refinancing by using bank statements on this page. Learn more about loans without tax return requirements.
Yes, despite having a high DTI, you can still qualify for a jumbo loan. Of course, being in a situation where you want to qualify for a mortgage while having a high DTI is tricky. Not surprisingly, lenders prefer borrowers who have low DTIs to demonstrate their ability to pay back the loan. But one thing that people often miss is that having a high DTI does not necessarily mean you cannot settle your monthly payment.
If you or your client are caught in a similar situation, a “no ratio” program may be the perfect solution. This program is designed for borrowers who have high DTI, prefer not to show proof of income, or are unemployed or retired. The innovative features of this program include:
Of course, this leniency comes with a trade-off. To make up for the less stringent requirements, borrowers must have a good credit score and history, with a minimum FICO of 680. And, while the maximum loan-to-values are somewhat conservative (75% LTV for purchases and rate-and-term refinances; 70% LTV for cash-out refinances), gift funds are allowed for any down payment, closing costs, and reserves.
Click here to see how we assisted a client who was furloughed from employment qualify for a $1.32M refinancing with no proof of income. Learn more about loans without income or employment verification.
Florida proves to be an attractive location for foreign nationals.
As a foreign national who would like to buy a luxury home in Florida, keep in mind that there are creative programs ready to help you finance your dream vacation or second home or investment property. If you don’t have all the cash in hand, you can still get a hold of the property that you so wanted to own.
There are three general types of loans designed to solve every foreign national’s case.
This option is for foreign nationals who can fully document their income and liabilities and have low DTI when calculated by the lender. To apply under full documentation, the foreign national should submit:
This route is designed for jumbo borrowers who cannot qualify via foreign tax returns because the tax returns show little to no income.
However, as an alternative to providing tax returns, foreign nationals with a high net worth, for example, can take advantage of an asset depletion program. Under this program, the borrower’s monthly income is calculated based on their assets rather than their payroll. The program caters to foreign nationals with high DTI.
But do not be misled by the name of the program. When you qualify for the asset depletion program, it does not literally mean that you need to deplete or liquidate your assets. Asset depletion is just an underwriting tool, and as long as you can settle your monthly payments with cash, you do not need to worry about your assets being liquidated.
If you cannot or do not wish to provide documentation of your personal income, then a hard money loan or bridge loan suits you best. Under this program, the loan amount will be solely based on the value of the property, hence these loans are also known as “collateral-based loans.” However, this type of loan typically comes with relatively high-interest mortgage rates, which is understandable and acceptable given the higher risk the jumbo mortgage lenders are accepting.
Hard money or bridge jumbo loans may be the only option for foreign nationals from countries perceived as risky. These countries include, but are not limited to, Cuba, Egypt, Iran, Syria, and other countries on the OFAC list.
Visit this page to see how we helped our foreign national client qualify for a $1.6M hard money loan in just 4 days. Learn more about bridge loans for foreign nationals in Florida.
Yes, with a creative and innovative approach, you can get a jumbo or super jumbo home loan even for non-warrantable condos. There are two types of condos—warrantable and non-warrantable. Fitting into these categories depends on separate guidelines set by different agencies including Fannie and Freddie, Federal Housing Administration, and Veterans Affairs. While there is no consensus on what makes a condo warrantable or non-warrantable, the most common reasons for being the latter are:
Just like zebra borrowers, there are zebra properties too. Non-warrantable condos are not backed by secondary mortgage markets and other agencies, leaving lenders without protection. As such, non-warrantable condos make the jumbo loan application several times more challenging than a typical mortgage loan. So, even a horse borrower with good credit and all the documents ready may struggle to finance a non-warrantable condo.
Check how we helped our client qualified for a $2M jumbo loan for a non-warrantable condo despite being a non-U.S. citizen and several more challenges.
Yes, even with blemishes on your credit report, you can still qualify for a jumbo loan. Knowing how much financial damage the last year and a half has caused, it is not surprising for potential borrowers to have experienced recent negative credit events. Many have filed bankruptcy, faced foreclosure, or resorted to deeds-in-lieu of foreclosure and short sales. Understandably, many people now wonder if they would still qualify for jumbo loans.
You might be subject to certain waiting periods from the time the derogatory event happened. The waiting periods also vary depending on the negative event in consideration and what type of loan you plan to get. Generally, the waiting periods are as follows:
Alternative jumbo lenders may require significantly shorter waiting periods compared to the ones listed above. Others may even give you a loan as quickly as one day after the event. However, the trade-off would be higher jumbo loan rates as compared to the typical conforming or jumbo loan. In the end, the decision would depend on how soon you need or want the property and how much interest rate you can afford.
Learn how we helped our clients qualify for $1.2M and 1.8M jumbo loans despite tax liens and negative credit history, respectively.
Yes, bridge loans for jumbo loan amounts are available. Bridge loans are short-term mortgage loans given to borrowers who have an urgent need for funds.
Perhaps you’re under contract to purchase a property, and the contract deadline is looming because you went down the wrong path with another lender only to get denied.
Or a bridge loan can act as a temporary loan while a long-term loan is not yet available. For example, when you haven’t closed the sale of your current home but the closing deadline to purchase your new home is nearing its due, you may opt to apply for bridge financing to get funds for the down payment and later repay the loan once the sale of the first home is completed.
Because of the risk and the urgency, jumbo bridge loans come with a higher interest rate. While there is no single-fits-all rate, choosing the lowest rate with the safest terms would help you in the long term.
Major banks do not offer bridge financing because of the level of risk it carries. So, if you think bridge financing can save you from an urgent financial need, you should consider alternative lenders instead. Mortgage brokers also have contacts with lenders offering bridge financing.
Click here to see how we helped our foreign national client qualify for a $1M bridge loan in just 1 week.
Yes, under a program called cross-collateralization. If you have paid fully or have a small amount of loan remaining for your first house, you can use it as cross collateral to qualify for a second home loan. Doing so could stop you from shelling out down payment from your pocket and save you time waiting to finish your first mortgage.
Cross-collateralization applies to real estate purchase and refinancing. A borrower can get up to 100% LTV if:
For loans outside these conditions, the down payment usually starts at 10% for owner-occupied homes and 20% for second or investment properties. Visit this page for more details on cross-collateralization jumbo loans.
Liquid and illiquid assets can help you land a jumbo loan. Using assets is common among borrowers with high net worth but do not have a steady source of monthly income. It also works best for borrowers whose applications were rejected because of their high DTIs.
There are two ways to use your assets to qualify for a mortgage. The first option is the asset depletion program, and the second is the pledged asset program.
Through asset depletion, a borrower’s monthly income stream is computed based on their assets rather than their salary. Borrowers utilize assets, including savings and checking accounts, mutual funds, retirement assets, and more.
But despite its name, asset depletion would not require a borrower to deplete their assets literally. It is just an underwriting tool to assess the borrower’s ability to repay the loan. The loan can be repaid using other income streams and does not necessarily have to come from the assets declared.
This program is perfect for borrowers who have substantial liquid assets to pledge to the lender of the jumbo loan. A borrower may qualify for an LTV of up to 90% by pledging cash, stocks, bonds, savings account, etc. This is a good option because it would lessen your down payment without requiring you to liquidate your assets.
The pledged assets program offers flexibility for interested borrowers. It can be used to purchase and refinance luxury homes without needing the obligor and the borrower to be the same person or to be related by blood. To cover the LTV deficit, a cash asset equivalent to the deficit must be pledged. For non-cash assets, this amount should be doubled to account for the fluctuations in value.
Visit this page to learn more about these creative ways to use your assets to qualify for a jumbo loan.
Yes, we have loan programs that guarantee utmost confidentiality for known personalities, including celebrities, government officials, and other high-net-worth individuals. Keeping mortgage transactions confidential makes sure that these borrowers maintain their privacy and get to enjoy their luxury properties peacefully, away from the eyes of the crowd.
If you think a private mortgage can serve you or your client best, it is best to let the mortgage broker or the lender know before proceeding with the transaction to make sure that all steps are processed confidentially.
As the innovative loan solutions above demonstrate, providing tax returns, W2s and paystubs is not the only available avenue to purchase a luxury home. It is possible to find lenders with the creativity and flexibility to get jumbo loans closed.
Now that you have seen the rich variety of options that are available to horse and zebra borrowers, are you ready to make your or your client’s dream of owning a luxury home a reality?
