What is a Jumbo Mortgage Loan?
A Jumbo Loan is used for homes and properties where financing exceeds $832,750. That number changes each year and is determined by limits set by the Federal Housing Finance Agency (FHFA).
The benefits of a Jumbo Loan from OneAZ include
Finance up to $1,150,000 with only 3% down*
Loan amounts up to $3,000,000
Reduced mortgage insurance premiums
Your loan stays local from application to funding
FAQs
A Jumbo Loan is used for homes and properties where financing exceeds $832,750. That number changes each year and is determined by limits set by the Federal Housing Finance Agency
(FHFA). Jumbo Loans are also known as non-conforming loans because they are not guaranteed by Fannie Mae or Freddie Mac.
Jumbo loans have stricter requirements than other types of mortgages. Here’s what you can expect when applying for a jumbo
mortgage loan.
Higher Minimum Credit Score: Jumbo loans will require a higher credit score than conventional or government-backed loans.
Larger Cash Reserves: You may be asked to have 6 to 24 months of mortgage payments and expenses on hand as reserves.
Larger Down Payments: Larger mortgage amounts require larger down payments.
Lower Debt-to-Income Ratio: This helps prove your ability to manage your payments.
Higher Closing Costs: Expect to pay higher closing costs with jumbo loans based on various mortgage related fees associated with a larger overall loan amount.
In the past, jumbo loans were primarily used for those purchasing a luxury home. But with the rapid increase in home values over the past few years, jumbo loans are becoming more of a norm for a typical single-family home in Arizona metropolitan areas.
A fixed-rate jumbo loan keeps the same interest rate for the life of the
loan unless you refinance. An adjustable-rate jumbo loan (ARM) starts with a fixed interest rate for a set period, then adjusts periodically based on market conditions.
What’s Next?
Your Key to Homeownership
Designed to support Arizona homebuyers at every stage, including first-time homebuyers looking for simple, flexible mortgage options.
Fast Closings
We guarantee our loans close in 24 days or we’ll give you $2,5001.
Lower Fees
We typically offer lower fees than other lenders so you have more move-in money.
Local Expertise
From your first home to complex builds, our local experts handle the heavy lifting so you don’t have to.
Tailored Loans
Whether it’s a standard mortgage, a low-down-payment FHA, or a custom construction loan, we have the perfect fit.
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*Terms and Conditions Apply; Maximum loan amount limits apply. Fixed-rate mortgages, primary residences only. Certain property types are ineligible. All loans are subject to credit approval, underwriting factors, and program eligibility. Membership qualifications apply. For membership eligibility visit OneAZcu.com/membership.
