What is a Jumbo Loan?

March 29, 2016 · 2 minute read

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What is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds specific dollar amounts set by the Federal Housing Finance Agency. What’s considered a jumbo mortgage depends on where the property is located. For most places in the U.S., a mortgage on a 1-unit property is considered a jumbo loan if it exceeds $484,350 .

However, in places like Hawaii and in certain high-cost counties, jumbo loans may have even higher limits. For example, in San Francisco county, a loan is only considered “jumbo” if it exceeds $726,525 (even though the median house price is much higher than that). Most lenders offer both fixed-rate and variable-rate jumbo loans.

Why do Jumbo Loans Matter?

The main reason that jumbo loans even matter is because many lenders treat jumbo mortgages differently from non-jumbo loans (also called conforming loans). Compared to conforming loans, jumbo loans may have different:

•  Interest rates
•  Underwriting and credit guidelines
•  Minimum down payment requirements
•  Reserve requirements

All else being equal, this means that it may be harder to qualify for a jumbo loan from some lenders.

What About Jumbo Loans at SoFi?

With SoFi, we offer the same great rates and experience no matter how much or how little you need to borrow. Our goal is to accelerate your success.

•  SoFi offers 15-year fixed-rate, 30-year fixed-rate, and 7/1 adjustable-rate mortgages on primary residence or second homes. Buyers and refinancers also have access to a 5/1 interest only adjustable-rate mortgage on primary residence homes.
•  If you’re shopping for a home, SoFi lets you put as little as 10% down on loans up to $3 million.
•  If you’re refinancing, you can cash out up to 75% of your property’s value.

The SoFi Difference

Competitive rates and fast closing. Put as little as 10% down on jumbo loans up to $3M.

Refinance to new rates or terms with up to 80% loan-to-value, or cash out up to 75% loan-to-value.

Don’t settle for another lender before you see what SoFi can offer — it only takes 2 minutes.


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