Luxury Home Financing
When your dream home exceeds the standard conforming loan limits, you need a jumbo loan. Joe Metzler specializes in jumbo mortgage financing, offering competitive rates and flexible terms for luxury properties, high-value homes, and unique financing situations.
2025 Conforming Loan Limits
$806,500
Standard Limit
(Most Counties)
$1,209,750
High-Cost Areas
(Hawaii, Alaska, Guam, VI)
Loans above these amounts require jumbo financing.
Loans between $806,501 and $1.2M in high-cost areas may qualify as "super conforming" with better terms.
Jumbo vs. Conforming Loans
| Feature | Conforming Loan | Jumbo Loan |
|---|---|---|
| Loan Amount | Up to $806,500 ($1.2M high-cost) | Above conforming limits |
| Down Payment | As low as 3% | Typically 10-20% minimum |
| Credit Score | Minimum 620-640 | Minimum 700-720 |
| Interest Rates | Generally lower | 0.25% to 0.75% higher |
| Debt-to-Income | Up to 45-50% | Usually capped at 43% |
| Cash Reserves | 2 months | 6-12 months required |
| Documentation | Standard | Extensive; asset depletion options |
Note: Loans between $806,501 and $1,209,750 in high-cost areas may qualify as "super conforming" with better terms than true jumbos.
Jumbo Loan Programs
Standard Jumbo
Traditional jumbo financing from $806,501 up to $3 million.
- Fixed and ARM options
- Primary and second homes
- Full documentation
- 20% down typical
Bank Statement Jumbo
For self-employed borrowers using bank statements instead of tax returns.
- 12-24 months statements
- No tax returns
- 20-25% down
- Up to $3 million
Asset Depletion
Qualify based on liquid assets rather than employment income.
- Use retirement/investment accounts
- No employment income needed
- $1M+ assets required
- Perfect for retirees
Interest-Only Jumbo
Lower initial payments with interest-only terms.
- 5-10 year IO periods
- 25-30% down required
- Good for variable income
- Payment shock risk after IO
Rates & Requirements
Interest Rates
Jumbo rates are typically 0.25% to 0.75% higher than conforming due to lack of government backing. However, the gap has narrowed recently.
- Rate Premium: 0.25%-0.75% above conforming
- ARM Advantage: Jumbo ARMs often 1-2% lower than fixed
- Relationship Pricing: Move assets to lender for 0.125-0.50% reduction
Down Payment Requirements
- Primary Residence: 10% minimum, 20% standard
- Second Home: 20-30% down
- Investment: 25-30% down
- Super Jumbo ($3M+): 30-40% down
Cash Reserves
- 6-12 months PITI required
- 12-24 months for loans over $2M
- 60-70% of retirement accounts count
Qualification Process
Consultation
Review your purchase price, down payment, and financial situation to determine the best jumbo program.
Documentation
Provide 2 years tax returns, W-2s, pay stubs, 2 months bank statements, and investment account statements.
Verification
Credit score (700+ preferred), DTI under 43%, and 6-12 months cash reserves verified.
Pre-Approval
Receive strong pre-approval letter for luxury home offers.
Underwriting
High-value properties may need two appraisals. Expect 30-45 days for approval.
Ready to Finance Your Luxury Home?
Get expert guidance on jumbo loan options and competitive rates.
Or call Joe directly at (651) 552-3681