Super Jumbo Mortgage Loans Guide: Best Rates & Requirements

Updated: January 1, 2024

Super jumbo mortgage loans are essential for high-net-worth and ultra-high-net-worth individuals looking for purchase or refinance loans ranging from $3 to $30 million or more. This expert guide provides valuable insights into the world of super jumbo mortgage loans, covering the best rates, requirements, and various loan types available. Whether you’re seeking financing for a new property or looking to refinance an existing one, this comprehensive resource is tailored to meet your needs.

What is a super jumbo mortgage?

A super jumbo mortgage is a loan that far exceeds the Federal Housing Finance Agency’s conforming loan limits.  In 2024, the conforming limit in most counties is $766,550 for single-family residences.  A “jumbo” loan amount is therefore at least $766,551.  A “super jumbo” loan starts much higher, typically $3 million.

Use the chart below to see where super jumbo mortgages fall on the spectrum.

	Conforming (in the majority of counties)	Super Conforming  (in areas with high home prices, e.g., Alaska and Hawaii)	Jumbo	Super Jumbo
Loan Amount (SFR, condo)	$766,550 and below	$1,149,825 and below	$766,551 and up $1,149,826 and up (high-home-price areas)	$3M – $30M
Loan Amount (2-unit)	$981,500 and below	$1,472,250 and below	$981,501 and up $1,472,251 and up (high-home-price areas)	$3M – $30M
Loan Amount (3-unit)	$1,186,350 and below	$1,779,525 and below	$1,186,351 and up $1,779,526 and up (high-home-price areas)	$3M – $30M
Loan Amount (4-unit)	$1,474,400 and below	$2,211,600 and below	$1,474,401 and up $2,211,601and up (high-home-price areas)	$3M – $30M
Will Fannie Mae and Freddie Mac purchase?	Yes	Yes	No	No
Type of Underwrite	Automated	Automated	Manual	Manual and highly specialized
# of Lenders Offering this Loan	Many	Many	Several	Very few

Each year, the FHFA sets the exact limits shown in the first three columns of the above table for conforming, super-conforming (high-cost areas), and jumbo loans. 

For super jumbo loans, however, that is a grayer territory. There is no FHFA definition for super jumbo loans.  Generally speaking, depending on the lender, a super jumbo loan is usually anywhere from $3 million to $30 million.

Therefore, when it comes to jumbo vs super jumbo mortgage, super jumbo mortgages are in their own special category:

• They cater to ultra-luxury markets, where properties are priced at $5 million, $10 million, $20 million, and beyond.
• Like jumbo loans, super jumbo loans require manual underwriting.  However, the level of underwriting scrutiny for super jumbo loans is particularly high, and usually entails a second level of review, due to the larger loan amount and higher risk involved.
• Fannie Mae and Freddie Mac will not purchase super jumbo loans, which means the lender is required to retain these loans on their books, contributing to increased risk and exposure.
• Due to the risk and special expertise required, very few lenders offer super jumbo loans. 

Super jumbo mortgage requirements

Super jumbo mortgage loans come with specific requirements that lenders scrutinize before approving the loan. The key super jumbo mortgage requirements include:

1. High credit score: Lenders typically require a credit score of 700 or higher for super jumbo loans.
2. Low debt-to-income ratio: Lenders prefer a debt-to-income ratio below 43% to ensure borrowers can comfortably manage their mortgage payments.
3. Large down payment: Super jumbo loans often require a significant down payment, typically at least 20% of the loan amount.
4. Ample reserves: Lenders may require borrowers to have reserves equivalent to at least 12 months of mortgage payments.
5. Proof of income and assets: Borrowers need to provide thorough documentation of their income and assets to demonstrate their financial stability.
6. Property appraisals: In contrast to the standard practice of a single appraisal, super jumbo lenders typically require two appraisals to ensure a comprehensive and accurate assessment of the property’s value.

Those heightened requirements help super jumbo lenders mitigate the risks associated with larger loan amounts.

However, it is important to note that some super jumbo lenders offer more relaxed and creative guidelines such as:

1. Self-employed: Super jumbo loans are not reserved for only borrowers who are employed and can provide 2 years of tax returns. Self-employed borrowers can also take advantage of super jumbo loans. No tax returns required. Instead, qualify based on bank statements or a profit-and-loss statement.
2. “2x liquidity”:  In certain super jumbo loan scenarios, if you hold twice the loan amount in liquid assets, you may be exempt from the traditional income verification process. This means you are not required to present tax returns or proof of income, as your substantial liquidity demonstrates adequate ability to service the loan.
3. High loan amount and high loan-to-value (LTV):  You can get the best of both worlds:  high loan amount and high leverage.  Whereas some lenders only go up to $3M at 80% LTV, others surpass that with up to $7.5M at 80% LTV.

Creative types of super jumbo mortgage loans

Super jumbo mortgage loans come in different flavors to cater to different borrower needs. Some of the most creative loan options include:

• Cross-collateralization: This program allows borrowers who own other properties to use the equity in those properties as collateral for the super jumbo loan. It can be used for both new purchases and refinances, and the loan-to-value ratio (LTV) can reach up to 100% with sufficient collateral and proof of reserves.
• Pledged assets: Borrowers can use assets such as cash, CDs, savings accounts, stocks, and bonds as collateral to secure a super jumbo loan. 
• Asset depletion: This technique is beneficial for borrowers with significant wealth but limited documented income. Lenders calculate the duration that the borrower’s assets can generate enough income to cover the mortgage and carrying costs, and if it meets the lender’s threshold, the mortgage is approved.
• Bridge loans: Borrowers often use short-term bridge loans, lasting a year or less, to facilitate a super jumbo purchase or refinance of a property while waiting for other funds to become available. These loans are designed to offer quick approval and funding, with minimal credit and income underwriting.
• Delayed financing:  This entails the scenario where buyers initially close with cash and then seek a super jumbo mortgage afterward to recapture their liquidity.

We discuss each flexible super jumbo mortgage loan program type below:

Cross-collateralization super jumbo mortgage

Cross-collateralization is a valuable program for borrowers who already own other properties and seek a loan for a luxury home. With this approach, the equity in those existing properties can serve as collateral for the new loan. This is particularly useful when the buyer has a pending sale that hasn’t closed yet but can’t wait for the other deal to go through. The lender takes a first lien position on both the newly purchased luxury home and the cross-collateralized property.

Some lenders offer up to 100% LTV if there is sufficient collateral and proof of at least 12 months of reserves. This means that no down payment is required in certain cases. Cross-collateralization can be applied not only to new purchases but also to refinances. It’s important to note that the borrower must own the properties involved in the cross-collateralization.

Pledged assets super jumbo mortgage loan

In addition to real estate, borrowers have the option to collateralize other types of assets to secure a loan for a high-value property. These assets can include cash, certificates of deposit (CDs), savings accounts, money market accounts, life insurance cash value, bonds, and stocks. However, it’s important to note that not all assets are eligible. Assets bought on margin, options, warrants, IRA assets, 401(k) assets, annuities, insurance benefits, and Section 529 or other education savings plans are typically excluded from being used as collateral.

One advantage of pledged asset programs is that the borrower doesn’t necessarily have to be the owner of the collateral. This means that family members, friends, or foundations and trusts may be able to assist by providing collateral for these loans. Pledged assets offer flexibility and can be an effective solution for borrowers who may not have sufficient real estate equity but possess other valuable assets that can be used as collateral.

Asset depletion super mortgage

The asset depletion technique is an ideal option for borrowers who have substantial wealth but can’t sufficiently document their income. It can be particularly useful for those with unconventional or difficult-to-underwrite income sources, such as self-employment or income from small businesses.

In this approach, the lender assesses the available assets and calculates how long they can generate an income stream sufficient to cover the mortgage, insurance, and other carrying costs. If the calculated income stream meets the lender’s threshold, the mortgage is approved.

Asset depletion programs are available for both new purchases and refinances. The assets used for depletion must be liquid, held in a U.S. bank, and 100% owned by the borrower.  Some lenders may also allow cryptocurrency, annuities, or privately held stock.

Bridge loans for super real estate

Borrowers in the super luxury real estate market often utilize short-term bridge loans to facilitate a super jumbo loan purchase or refinance. These loans typically have a duration of one year or less. There are several reasons why borrowers opt for bridge loans. They may not want to liquidate a significant amount of assets immediately, or they may be waiting for the sale of another property to provide cash for the new purchase. In some cases, buyers simply want a fast approval and funding process to expedite the closing, with plans to arrange more permanent financing later.

Delayed financing for ultra-luxury properties

In certain cases, buyers opt to close a real estate transaction with cash on hand. This approach is advantageous when buyers want to expedite the closing process and avoid the need to liquidate highly appreciated assets, which could result in capital gains tax liabilities.

However, these buyers may not wish to tie up their liquidity in real estate for an extended period, as they might have other investment opportunities for that cash. As a solution, they often purchase the property using their own funds and later seek a mortgage through a strategy called delayed financing.

Delayed financing allows buyers to obtain a mortgage shortly after the cash purchase of a property. By utilizing this approach, buyers can regain access to their liquid assets while still benefiting from the advantages of mortgage financing. This can be particularly appealing for HNW and UHNW individuals who value flexibility and want to optimize their financial strategies. 

Nuances of super jumbo loans to consider

Super jumbo loans come with certain nuances worth considering.

For example, privacy is crucial for high-net-worth individuals, as they often prefer to avoid drawing attention to their transactions due to personal, security, or business reasons.  Additionally, personal issues like divorce or family matters may be involved, necessitating a confidential approach to real estate transactions.

Lenders recognize that discretion is a priority, and their super jumbo loan programs prioritize privacy and confidentiality. 

Super jumbo mortgage rates today

When it comes to super jumbo rates, it’s essential to stay updated with the current market trends. The current super jumbo mortgage rates for these loans can vary depending on market conditions, economic factors, and individual borrower qualifications. Working with a knowledgeable mortgage broker can help you navigate the market and secure competitive rates tailored to your specific needs.

Current super jumbo mortgage rates

Generally speaking, if you know where to look, super jumbo mortgage rates remain highly competitive. However, rates fluctuate regularly, so it’s advisable to consult with a mortgage professional to get the most accurate and up-to-date information. Factors such as credit score, loan amount, down payment, and loan term greatly influence the final rate offered by lenders.

Therefore, it is not possible to accurately provide super jumbo mortgage rates today.  The super jumbo mortgage rate for Borrower A can be very different than the super jumbo mortgage rate for Borrower B.

However, the following real-world example can provide an indication of the interest rate for a super jumbo loan.  Still, it’s important to note that your specific rate will heavily rely on your individual circumstances and current market conditions:

• In March 2023, we helped our client close a super jumbo loan in California.
• Purchase price: $6.2M
• Loan amount: $4.96M (80% LTV)
• Interest rate:  6.125% (10/1 ARM)
• Single-family home to be used as primary residence
• Self-employed borrower
• Only 1 appraisal required, not 2
• Clear to close in only 15 business days

As background, our client had previously gone to his bank, but they capped his loan amount at $3M. We introduced him to a private bank with a healthy appetite for higher-leverage super jumbo loans. Our client got his desired $4.96M at 80% LTV and the deal was saved for the realtors.

Where to get the best super jumbo mortgage rates

To access the best super jumbo mortgage rates, it is highly recommended to engage the services of a mortgage broker who possesses expertise in this specialized market, as locating super jumbo lenders independently can be a daunting task. 

Finding super jumbo lenders can be akin to searching for a needle in a haystack, given the limited availability of lenders in this niche market. Engaging the assistance of a mortgage broker is crucial as they possess the knowledge and connections to navigate this specialized landscape and locate the elusive super jumbo lenders offering competitive rates.

Super jumbo interest-only mortgage rates

Interest-only mortgage options are available for super jumbo loans. These loans provide flexibility by allowing borrowers to pay only the interest for a certain period, typically five to ten years. During this period, the monthly payments are lower, but borrowers should carefully consider their long-term financial strategy and ability to make full principal payments once the interest-only period ends.

The super jumbo mortgages market is booming!

The ultra-wealthy demographic has experienced significant growth in recent years.  Real estate accounts for about two-thirds of the wealth held by ultra-high-net-worth households, emphasizing the importance of real estate in their investment portfolios.

The surge in the ultra-wealthy market presents a lucrative opportunity for real estate professionals who can effectively market to this demographic. Forbes defines the ultra-high-net-worth segment as having a net worth of $30 million or more, and cities like Los Angeles, New York City, and Washington, D.C. are home to thousands of these individuals.

The demand for super jumbo mortgage loans has grown in tandem with the rising luxury real estate market. As individuals seek to finance their high-value properties, real estate agents and brokers must be well-prepared to serve this exclusive clientele.

Understanding the unique needs and expectations of these clients and having the necessary expertise to facilitate super jumbo mortgage loans is essential for success in this market segment.

Start your super jumbo loan journey today

If you’re a borrower in need of a super jumbo loan, or if you’re a realtor or financial advisor representing a client seeking a super jumbo loan, contact us today. 

We specialize in difficult-to-underwrite situations and offer a range of solutions, including:

• Recommending the best jumbo loan lenders
• Jumbo mortgage refinance deals
• Self-employed mortgages
• OFAC mortgage deals
• Short-term rental financing
• Non-warrantable condo loans

Our network of specialty lenders ensures we can cater to the unique needs of luxury real estate buyers.

Super jumbo home loan key takeaways

What is a super jumbo loan? Here are some key takeaways:

• Super jumbo home loans are tailored for high-net-worth and ultra-high-net-worth individuals seeking to purchase or refinance high-end luxury properties. 
• A super jumbo home loan typically comes with stricter requirements, such as a high credit score, substantial down payment, and ample reserves. 
• However, some super jumbo lenders have more relaxed guidelines, e.g., no tax returns required for self-employed borrowers.
• There are also creative types of super jumbo loans (including cross-collateralization, pledged assets, asset depletion, bridge loans, and delayed financing) that provide flexibility for borrowers with varying financial situations. 
• It’s essential to work with experienced lenders who understand the luxury real estate market and can offer competitive rates and terms. 

When it comes to finding the best super jumbo mortgage lenders, there’s no better reason to enlist the help of a mortgage broker, as there are very few lenders who offer super jumbo loans.

We work with a network of specialty lenders who understand the luxury real estate market and the super jumbo borrower, and how to get the deal closed and funded.