Jumbo Home Loans
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Jumbo Loan
Jumbo mortgages are used to finance homes above the conforming loan limit ($726,200 for most of the U.S. in 2023) traditionally accepted by Fannie Mae and Freddie Mac. To secure a jumbo home loan, a borrower must have a high credit score and healthy reserves.
- Loan amounts up to $3 million
- Eliminates the need for secondary financing
- Allows buyers to finance more expensive properties in counties with lower conforming loan limits
- No prepayment penalties
Today's Jumbo Home Loans Rates
See at a glance how VA IRRRL rates stack up today. Compare different mortgage loan types and learn more about how VA IRRRL can make your monthly mortgage payments more stable and affordable.
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Discount points apply, view assumptions for details. Rates valid on:
Wed, Jul 12 2017, 09:49 AM PT and are subject to change without notice.
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Discount points apply, view assumptions for details. Rates valid on:
Wed, Jul 12 2017, 09:49 AM PT and are subject to change without notice.
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For a rate quote, please call a Pennymac Loan Officer at (866) 549-3583.
What Is a Jumbo Loan?
A non-conforming loan that allows a borrower to purchase or refinance a high value property is considered a jumbo home loan. For most areas of the country the current conforming loan limit, set by government enterprises, is $726,200. If you have a low debt-to-income (DTI) ratio, a higher credit score, and healthy reserves, a non-conforming jumbo loan may be right for your high-value, luxury home.
If you’re considering a jumbo mortgage, keep in mind that the down payment requirement is 10.01%, and you may have a higher rate and stricter underwriting guidelines. Contact a licensed loan officer to learn more.
Pennymac offers jumbo loan options with a variety of terms to help you purchase a luxury home. Borrowers with a credit score of 700+ , 9-to-12 months of reserves, and a 75-89.99% Loan-to-Value (LTV) ratio are eligible for amounts up to $3 million. There is also added flexibility to accommodate multiple types of properties, including 2-unit and second homes. Let Pennymac work with you to see how you can benefit from a jumbo loan.
Rates & More Info- Loan amounts up to $3 million
- Eliminates the need for secondary financing
- Allows buyers to finance more expensive properties in counties with lower conforming loan limits
- No prepayment penalties
- Close On-Time Promise*
For luxury homeowners looking to save on their current mortgage payments, Pennymac offers jumbo refinance loans. Refinancing a jumbo loan is a great way to get a great rate with one loan to cover your financial goals.
Rates & More Info- All you need is an 89.99% LTV
- Flexible term options could enable you to save money without extending the length of your loan
- Loan amounts up to $3 million, with 12 months reserves
- No prepayment penalties
Access the equity in your home with a Pennymac jumbo cash-out refinance loan. Get started on home renovations, eliminate outstanding debt or cover other expenses, like a child’s education or unexpected medical bills. In some cases, you may also be able to lower your monthly rate. With a wide range of jumbo cash-out refinance options Pennymac has a loan for your needs, including fixed-rate loans in a variety of terms.
Rates & More Info- Use cash from your equity for anything, including home improvements or paying off high-interest debt
- Get up to $500,000
- Manage your debts at the best possible rate
- Consolidate other debt from multiple sources, like auto loans and credit cards, into a single payment to simplify your finances
Who Is Eligible for a Jumbo Loan?
Unlike conventional loan products, jumbo loans have more stringent standards: a lower debt-to-income (DTI) ratio, a higher credit score, and healthy reserves.
Jumbo loans allow a borrower to secure a loan that exceeds the current conforming loan limit, which is $726,200 in most areas of the country. When considering a jumbo loan, keep in mind that a minimum down payment of 10.01% is required, the rate structure may vary and you may be subject to stricter underwriting guidelines. Pennymac knows jumbo loans and can guide you through the process to find your best option.
Jumbo mortgage eligibility requirements include:
- Great credit – Generally credit scores of 700 or higher depending on the transaction, though the FICO requirement may vary from lender to lender.
- Minimum 10.01% down payment – A 10.01% minimum down payment is required to secure a jumbo loan up to $3 million.
- Reserves – Specific reserves are needed: 9 months reserves for up to $1.5 million and 12 months for single family homes in the top tier from $1.5 - 3 million.
- Proof of income – Proof of steady income to cover the cost of your loan is needed and self-employed individuals will need to supply two years of tax returns.
- Debt-to-income – Your debt-to-income (DTI) ratio should be no more than 43%. This is the percentage of your monthly gross income that is paid out to recurring debts.
Why Choose Pennymac as Your Jumbo Mortgage Lender?
As a leading national mortgage lender, Pennymac focuses on offering the right loan based on individual needs. From first-time homebuyers to those refinancing their existing loan, our licensed loan officers are equipped to help borrowers through each and every step of the jumbo mortgage process.
Pennymac is committed to making the loan experience easy for each and every customer, even those who are interested in high-value, luxury homes and want to keep it simple by using a jumbo home loan. We’ll find the right home loan for your unique needs and we offer competitive rates on a wide range of products. Call a licensed loan officer to learn more about what Pennymac can do for you.
Frequently Asked Jumbo Mortgage Questions
What Are the Credit and Income Requirements for a Jumbo Loan?
Pennymac jumbo loans require a credit score of 700 or higher. Although there are many other factors, including credit history, the jumbo loan process for borrowers is very similar to that of a conventional loan. The documentation needed is comparable, but with slightly stricter requirements for most situations.
What Kind of Properties Can I Buy with a Jumbo Mortgage?
Jumbo home loans can be used for a wide range of luxury properties:
- Single family homes (attached/detached)
- Planned Unit Developments (attached/detached homes with a homeowner's association)
- Condominiums
- 1-2 Unit Primary and Investment (Rental)
- 1 Unit second or vacation home
Can I Use Gifted Funds for My Down Payment?
You may use cash gifts towards the costs of a jumbo loan, however, at least 5% of the down payment must come from your own funds. The minimum amount required to come from your own sources may vary depending on the specifics of your purchase loan.
