Jumbo loans for higher-priced homes

What jumbo lenders look for

Because these loans are larger and aren't backed by Fannie Mae or Freddie Mac, lenders look more closely at the whole picture:

• Credit

  Higher scores are usually expected, and they affect your pricing.

• Reserves

  Lenders want to see savings left over after closing, often several months of house payments. Retirement and investment accounts can count.

• Debt-to-income

  Your monthly debts, including the new payment, compared with your income.

• Documents

  Expect to provide more statements and explanations than on a smaller loan. Some lenders ask for a second appraisal on higher-value homes.

When a loan becomes jumbo

What matters is the loan amount, not the price of the home. Two buyers can look at the same house and one can end up with a jumbo loan while the other doesn't, depending on how much each puts down. If you are close to the limit, a slightly larger down payment can keep you in a conventional loan, which may have simpler rules. If you would rather keep more cash in savings, a jumbo loan lets you borrow more. We'll show you both so you can decide.

Fixed or adjustable

Jumbo buyers often look at both. A fixed rate gives you the same principal and interest payment for the life of the loan. An adjustable rate starts with a set period and then can change, which can make sense if you expect to sell or refinance before the fixed period ends. We'll show you how each would look over the time you plan to own the home.

Self-employed jumbo buyers

Business owners can qualify for jumbo loans, but income documentation takes more planning. Tax returns, business statements and how much income you write off all matter. Our self-employed loan page explains the options, and we're happy to review your situation before you start shopping.

Jumbo loans around Charlotte and Lake Norman

Higher-priced homes come up often around Lake Norman in Huntersville and Mooresville, in parts of Charlotte, and on larger lots across the region. If you are buying a second home or a rental at this price point, see our investment property loans page as well.

How to prepare

Start gathering documents early: two years of tax returns, recent pay stubs or business statements, and two to three months of statements for every account you plan to use. Avoid opening new credit or moving large amounts of money between accounts while you shop. If you need to move money, tell us first so we can document it.