Jumbo Loans | Royal Capital Solutions

Jumbo Loans: Flexible Financing for High-Value Homes

We provide both traditional and non-traditional (non-QM) Jumbo loan options to help homebuyers secure financing for properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For buyers who may not meet standard financing guidelines, our non-QM Jumbo mortgage products offer alternative solutions, allowing greater flexibility in qualification and documentation requirements.

Jumbo loans are designed for luxury and high-cost properties that exceed the loan limits backed by Fannie Mae and Freddie Mac. In most parts of the country, a jumbo loan is required for homes priced above $647,200 for a single-family residence. However, in high-cost areas (such as parts of California, New York, and Washington D.C.), as well as Hawaii and Alaska, the loan limit extends up to $970,800. Since these loans are non-conforming, they do not follow the conventional loan guidelines set by government-sponsored entities, making them a unique category of home financing.

Also known as non-conforming loans, jumbo mortgages require higher credit scores, larger down payments, and stronger financial profiles, but they provide financing solutions for buyers looking to invest in expensive real estate or unique property types. Whether you’re purchasing a primary residence, second home, or investment property, we have customized jumbo loan options to fit your needs.

Jumbo Loan Eligibility Requirements

Higher Loan Amount – Must exceed the conforming loan limit of $647,200 in most areas ($970,800 in high-cost regions).
Higher Credit Score – Typically requires a credit score of 700 or higher, though some lenders may approve scores as low as 680 with compensating factors.
Larger Down Payment – Requires 10% to 20% down, depending on the lender and borrower qualifications.
Lower Debt-to-Income (DTI) Ratio – Most lenders prefer a DTI ratio of 43% or lower, ensuring borrowers can manage large loan payments.
Strong Income and Asset Documentation – Borrowers must provide proof of income, tax returns, W-2s, or alternative documentation (such as bank statements for self-employed borrowers).
Cash Reserves – Lenders may require 6 to 12 months’ worth of mortgage payments in savings to cover unexpected financial difficulties.
Appraisal Requirement – Jumbo loans often require two home appraisals to confirm the property’s value.
Property Type Restrictions – Financing is typically available for primary residences, second homes, and investment properties, though guidelines vary by lender.
Stronger Financial Profile – Borrowers must demonstrate consistent income and strong financial stability to qualify for a non-conforming loan.

Since Jumbo loans are not backed by Fannie Mae or Freddie Mac, qualification standards can be stricter, but they offer custom financing solutions for high-value properties. Contact us today to explore your options!

Pros of Jumbo Loans:

Higher Loan Limits – Allows buyers to finance luxury homes and high-value properties that exceed conventional loan limits.
No Private Mortgage Insurance (PMI) with 20% Down – Unlike conventional loans, PMI is not required for jumbo loans when making a 20% or higher down payment.
Flexible Property Options – Can be used for primary residences, vacation homes, and investment properties, providing financing versatility.
Competitive Interest Rates – While historically higher, jumbo loan rates are now comparable to conventional loan rates, depending on the borrower’s financial profile.
Customizable Loan Terms – Offers options such as fixed-rate or adjustable-rate mortgages (ARMs) to fit different financial strategies.
One Loan vs. Multiple Loans – Instead of taking out multiple smaller loans, a jumbo loan consolidates financing into a single mortgage.

Cons of Jumbo Loans:

Higher Credit Score Requirements – Typically requires a credit score of 700+, though some lenders may accept 680 with strong financial compensating factors.
Larger Down Payment – Borrowers usually need to put down 10% to 20%, making upfront costs higher than conventional loans.
Stricter Debt-to-Income (DTI) Requirements – Lenders prefer a DTI ratio of 43% or lower, requiring strong income stability.
More Extensive Documentation – Requires detailed income verification, including tax returns, W-2s, and bank statements, making the approval process more complex.
Higher Cash Reserve Requirements – Some lenders require borrowers to have 6 to 12 months’ worth of mortgage payments in savings.
May Require Multiple Appraisals – Jumbo loans often require two independent appraisals, increasing upfront costs and time to close.

Jumbo loans are a great option for buyers looking to finance high-value homes, but they come with stricter qualification requirements. Contact us today to explore your options and see if a jumbo loan is right for you!