Best Mortgage Lenders To Consider For Jumbo Loan

Mortgages are meant to make the homebuying process a little more affordable if you don’t have the money to purchase a home for full price in cash. For 2022, standard mortgage loan amounts typically go as high as $647,200, meaning this is as much as you can borrow to buy a home. However, if you think you’ll need to borrow an even higher amount for a home purchase (especially if you live in a higher cost-of-living area like New York City or Hawaii), you might want to consider jumbo loans.

Jumbo loans are meant for those who need to borrow more than the conforming loan limit of $647,200 for 2022 (the limit can depend on the city you live in, though). And because you’re borrowing more money, there are often stricter qualification requirements, like having a higher credit score or a much lower debt-to-income ratio. You also typically need to be able to make a down payment of at least 10% of the home’s value for a jumbo loan.

Select rounded up a list of some of the best mortgage lenders that offer jumbo loan options. We evaluated lenders based on the types of loans offered, minimum down payment amount, customer support, among other factors (see our methodology below).

Just keep a few things in mind when you’re looking to apply for a mortgage. Firstly, mortgage interest rates can fluctuate quite often, however, the rate you are likely to receive will heavily depend on your location, credit score and credit report. While you can take a look at each lender’s website to get an idea of what interest rates they charge, the best way to get a solid idea of what you will be charged is to provide the necessary information to check your rate.

The mortgage approval and acceptance process comes with many fees, collectively called “lender fees.” These can include an origination fee, processing fee, application fee and an underwriting fee. In addition to lender fees, you may also pay a document preparation fee, an appraisal fee, title search fee, title insurance and more. According to ValuePenguin, lender fees can run you an average of an additional $1,387.

Lastly, it’s important to do your homework so you can be sure you’re choosing the lender that best suits your needs whether you’re a first-time homebuyer or purchasing an investment property. We have included an FAQ section below to help you familiarize yourself with some aspects of the process, but if you have other more specific questions, reach out to a representative or an advisor at your desired lender.

Who’s this for? Rocket Mortgage is one of the biggest U.S. mortgage lenders and has become a household name. Most mortgage lenders look for a minimum credit score of 620, but Rocket Mortgage accepts applicants with lower credit scores at 580.

This lender offers an option called the Jumbo Smart Loan, which is geared toward those who need to borrow a larger amount of money for their home purchase. This loan is offered for up to $2.5 million. The minimum down payment amount for this type of loan is 10.01%, which is just slightly higher than that of other lenders on this list. One huge draw, however, is that you won’t have to pay private mortgage insurance (PMI) on your jumbo loan.

Who’s this for? For those interested in conforming loans (loans for $647,200 or less), Chase offers a slew of options, including a loan option called the DreaMaker loan. It allows homebuyers to make a down payment that’s as low as 3%. (By comparison, the FHA loan requires borrowers to make a 3.5% down payment.)

If you’re going for a jumbo loan and need to borrow more than $647,200, Chase still has options that try to make it as affordable as possible. Existing Chase customers can qualify for an APR discount of up to 0.5% as part of their Relationship Pricing Program for mortgages. To qualify, you need to have at least $500,000 in a Chase deposit account.

Chase also offers an interest-only mortgage option for jumbo loans. With this option, you’ll pay a fixed interest rate for the first 5, 7 or 10 years, and you choose your term. During this period, you’re only required to pay the interest. With other traditional mortgage options, you must pay the principal and the interest amount. After the initial term, you’ll get a variable rate with the principal amount for the next 20 years.

Additionally, if you don’t close on your jumbo loan on time, Chase will give you $5,000.

Who’s this for? It’s common for lenders to charge a number of fees on mortgage applications, including an application fee, origination fee, processing fee and underwriting fee — which end up costing a significant amount during the homebuying process. Even when applying for a jumbo loan, Ally Bank doesn’t charge lender fees, so you won’t pay for the application, origination, processing or underwriting.

Ally offers down payment options for a jumbo loan that are as low as 10%, and you can choose between adjustable-rate and fixed-rate mortgages. Homebuyers can also submit their online application in just 15 minutes as long as they have all the necessary documents handy.

Who’s this for? SoFi offers jumbo loans for up to $3 million, according to the lender’s website. This lender also allows you to make a down payment that’s as low as 10%. Regardless of your down payment amount, however, you won’t be charged PMI.

Borrowers who go with a SoFi jumbo loan can choose between a 30-year or 15-year fixed-rate mortgage. Plus, new SoFi home loan borrowers who purchase their home through SoFi can receive up to $1,000 deposited into a SoFi checking or savings account.

Pre-approval is a statement or letter from a lender that details how much money you can borrow to purchase a home and what your interest rate might be. To get pre-approved, you may have to provide bank statements, pay stubs, tax forms and employment verification, to name a few. Once you’re pre-approved, you’ll receive a mortgage pre-approval letter, which you can use to begin viewing homes and start making offers. It’s best to get pre-approved at the start of your homebuying journey before you start looking at homes.

A mortgage is a type of loan that you can use to purchase a home. It’s also an agreement between you and the lender that essentially says that you can purchase a home without paying for it in full upfront — you’ll just put some of the money down upfront (usually between 3% and 20% of the home price) and pay smaller, fixed equal monthly payments for a certain number of years plus interest.

For example, you…