Jumbo loans are loans for higher amounts – higher than the amount Conventional loans will let you borrow.
Because the loan amounts are higher, the rules are a little bit different.
Jumbo loans usually have higher interest rates, because there is greater risk to the lender.
If people don’t make their payments on a jumbo loan, the lender has a lot to lose.
Jumbo loans normally require a bigger down payment, too.
If the lender is going to lend you such a large amount of money,
• They want to see you have plenty of income to make the payment,
• A good payment history on your credit record,
• They normally like to see that you have some money left over in the bank after buying the new home.