When your dream home goes beyond the standard loan limits.

If you’re shopping for a home in a high-cost area — or looking at properties with luxury features, large square footage, or premium locations — you might run into a unique challenge:

👉 The home’s price exceeds what a traditional mortgage can cover.

That’s where a jumbo loan comes in.

Let’s break down exactly what a jumbo loan is, how it works, and whether it’s the right financing option for your next property.

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✅ What Is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

In most areas, the 2024 conforming limit is:

• $766,550 for a 1-unit property
• Higher in designated high-cost markets (up to $1,149,825)

If your loan amount is higher than that, you’ll need jumbo financing — which follows different rules than conventional loans.

📘 Jumbo loans are also known as “non-conforming” loans because they don’t conform to standard agency guidelines.

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🧠 Why Do Jumbo Loans Exist?

Jumbo loans were created to help buyers:

• Purchase homes in expensive markets (e.g. California, New York, DC)
• Finance luxury properties with high-end features
• Secure funding for multi-million dollar homes
• Buy larger properties in growing or upscale neighborhoods

You might need a jumbo loan even if you’re buying a relatively modest home — simply because of the local market.

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📊 Jumbo Loan Examples

• Buying a $1.2M home in Los Angeles with 10% down
  → $1.08M loan = Jumbo
• Buying a $750K home in Boise with 5% down
  → $712.5K loan = Jumbo (since it exceeds $766,550 limit)

We’ll help you compare conforming vs. jumbo options based on where you’re buying and how much you’re putting down.

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🧾 Key Features of a Jumbo Loan

• Loan amounts above $766,550 (varies by location)
• Stricter underwriting requirements
• May require a higher credit score (typically 680+)
• Often need larger down payments (10–20%)
• May require cash reserves
• Can be fixed-rate, ARM, or interest-only
• Available for primary, secondary, and investment homes

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💡 Who Needs a Jumbo Loan?

You might need a jumbo mortgage if you are:

• Buying in a high-cost metro area (L.A., San Diego, San Francisco, NYC, Miami)
• Looking at homes above $850K–$1M, even with 10–20% down
• Purchasing a second home or vacation property in a luxury market
• Shopping for larger homes or multi-unit properties
• Refinancing an existing jumbo loan

Even some first-time homebuyers may need jumbo loans depending on location and down payment.

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🏢 Why PRMI?

At PRMI, we offer:

• Competitive jumbo loan rates (fixed, ARM, interest-only)
• High loan amounts with flexible structures
• Fast, in-house underwriting for complex income or self-employed buyers
• Second homes, investment properties, and cash-out jumbo refis

We know jumbo isn’t just about size — it’s about strategy, and we’re here to guide you every step of the way.

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👇 Wondering If You Need a Jumbo Loan?

Let’s look at your purchase price, down payment, and location — and show you whether jumbo is your best option.