A Jumbo Loan, also called a non-conforming loan, is a home mortgage loan that allows financing for loan amounts that exceeds the maximum $417,000 (depending on what area of the country you’re in, loan amount may vary). Since home prices for larger or luxury homes can often exceed this amount, this loan might be perfect for the house of your dreams.
A Jumbo Loan is your best (or only) option if you need to borrow between $417,000 and $3,000,000 for a home purchase or refinance. Jumbo loan rates can be higher, lower, or the same as conforming loan amounts.
With the fluctuating market, Jumbo home mortgage loans do call for stricter requirements than in years past, but still follow a similar process that a typical loan would. You will generally need a 10%-20% down payment and will be able to potentially receive lower fixed or adjustable rates offering flexibility for financing with a bigger loan.