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Jumbo Mortgage

What is a Jumbo Loan?

A Jumbo Loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan in Arizona is $647,200, if you are looking to buy a home at a higher loan cost, a Jumbo loan may be up your alley.

Qualifying For a Jumbo Loan

Underwriting criteria for jumbo loans are stricter because the loans are larger and riskier for lenders.

Credit Score

Lenders may require your FICO score to be higher than 700, and sometimes as high as 720, to qualify for a jumbo loan, consult us about this today.

Cash Reserves

You’re more likely to be approved for a jumbo loan if you have ample cash in the bank. It’s not uncommon for lenders to ask jumbo loan borrowers to show they have enough cash reserves to cover one year of mortgage payments.

Guild Mortgage Yuma - Jumbo Mortgage

Debt-to-income Ratio

Lenders will also consider your DTI (hover over: debt to income) to ensure you don’t
become over-leveraged, though they may be more flexible if you have plentiful cash reserves. Some lenders have a hard cap of 45% DTI, however, call us today and we will see what can be approvable for you.


To prove your financial health, you’ll need extensive documentation, perhaps more than for a conforming loan.

You should be prepared to hand over your ID(s), Last 2 years’ tax returns, Last 2 years’ W-2s and 1099s, last 3 months’ bank statements, 1 month of paystubs, most recent mortgage statement, and information on any investment accounts.


Some lenders may require a second home appraisal for the property you’re planning to purchase.

Jumbo Loans vs. Conforming Loans

The key difference between a jumbo mortgage and a conforming loan is the size of the loan, however among the other factors that differentiate jumbo loans from conforming loans are as followed:

  1. Heftier down payment
    While low down payments are fairly common on conforming loans, jumbo loans are more likely to require a down payment of at least 20%, though some lenders may go as low as 10%.
  2. Potentially higher interest rates
    Jumbo mortgage rates may be slightly higher than those on conforming loans, depending on the lender and your financial situation. However, many lenders can offer jumbo loan rates that are competitive with rates on conforming loans — and some may even offer slightly lower rates depending on market conditions, so make sure to shop around.
  3. Higher closing costs and fees
    Because jumbo loans are bigger and there are some extra qualifying steps, expect higher costs at the closing table.
  4. Conforming loans are generally sold to government-sponsored enterprises, making them a little more strict in approving. Jumbo loans are not, and can be obtained through private lenders.

Ideally, you will consult with your lender about this and what decision is best for your situation and qualifying needs.

Common Questions and Answers:

Do jumbo mortgages have more affordable interest rates?

As a rule, the interest rates for this type of financing are higher than for a conventional mortgage. Since these loans are for larger sums they come with additional risk for the lender, thus the higher interest rate.

I would like to know the benefits of an ARM jumbo loan-what are they?

Borrowers considering jumbo loans can save hundreds of dollars a month by choosing an adjustable-rate mortgage. That’s because an ARM will typically come with lower interest rates than a fixed-rate mortgage. That’s why so many jumbo borrowers choose ARMs over conventional fixed-rate loans.

Am I limited to purchasing a single-family home with this type of mortgage?

In addition to single-family homes, a jumbo loan may also allow borrowers to buy second homes and personal investment properties.

Guild Mortgage Yuma

Ray Ochoa

Senior Loan Officer

NMLS 214114

State Lic: AZ LO-0915882, TN 238287

PHONE: (928) 246-5937

PHONE: (928) 247-9089

Apply Now

Bill Craft

Sales Manager

NMLS 1621885

State Lic: AZ LO-0942496, CA-DBO01621885, MLO-54015VA

PHONE: (928) 366-1639

PHONE: (928) 247-9089

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Derek Egeberg

Branch Manager

NMLS 180899

State Lic: AZ LO-0915245, TN 236104

PHONE: (928) 246-0422

PHONE: (928) 247-9089

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Rosa Castillo

Senior Loan Officer

NMLS 799138

State Lic: LO-0944489

PHONE: (928) 920-2831

PHONE: (928) 247-9089

Apply Now

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