Jumbo Loans – For Bigger Appetites!

Jumbo Loans are designed for clients who need to borrow more than the conforming limits set by the government each year. Whether you’re buying in a higher priced area and/or simply want more home, this is the best option for you.

How are Jumbo Loans different?

Clients can borrow up to $3 million and choose between both fixed and adjustable rate options. These loans are considered non-conforming, so they are not typically sold back and forth between investors for servicing. As a result, underwriting standards are increased which result in higher FICO minimums, higher down-payments or equity, lower debt-to-income ratios, and higher requirements for reserves.

Things to Know For Jumbo Loans

  • The classification of a jumbo loan is determined by the loan amount. The Federal Housing Finance Agency (FHFA) defines loan limits each calendar year and even $1 over that limit is defined as a jumbo loan.
  • Jumbo loans are often referred to as “non-conforming or non-agency” loans because they fall outside of the FHFA limits. They are also called “portfolio” loans since investors usually keep these loans in their own books.
  • At Valley View, we underwrite our jumbo loans in-house, giving us full control of the timeline. Most other lenders and 100% of all brokers need to send your jumbo loan directly to the investor for a decision.