Jumbo Loan Blog

A Jumbo Loan May Be The Right Size

If you are looking for your dream home, a second home, or an investment property, you may find that you will need a jumbo loan, also known as a jumbo mortgage, to finance your dream. Since property values tend to be higher in California, more people need jumbo loans for financing. Jumbo loans are different than conventional mortgages, so the mortgage experts at First Entertainment Credit Union share this important information to ensure you understand the unique features of a jumbo loan.

What’s A Jumbo Loan?

A jumbo loan is designed for expensive, higher-end properties that exceed the loan limits of a conventional mortgage. Each year, the Federal Housing Finance Agency (FHFA) sets what is known as the conforming loan limit of conventional mortgages. A jumbo loan is a mortgage that exceeds the limits of conventional loans. The limits vary by county, but most consider a loan jumbo when the amount exceeds $647,500. Some counties have higher loan limits, such as Los Angeles, where a jumbo loan is over $970,800 and $879,750 in San Diego.

What Do I Need to Get a Jumbo Loan?

A jumbo loan and a conventional mortgage do the same thing: provide you with financing. The main differences are the loan amounts and the borrower requirements. The loan amount you can qualify for will depend on several factors, including:

  • If you are a first-time homebuyer
  • If you are an investor
  • A higher credit score 
  • A lower loan-to-value (LTV) ratio, which measures the amount of your mortgage compared to the value of the property
  • A lower debt-to-income ratio, which is your total monthly housing and debt payments versus your gross monthly pre-tax income
  • More cash available 

To get started, figure out how much you can afford to borrow. And it’s also a good idea to get a loan preapproval to show sellers you are serious about purchasing the property and have financing.

Check Out Our Home Rewards Program

If you haven't found your dream home yet, learn more about our Home Rewards Program.2 We can match you with a trusted realtor, and you’ll also earn a 20% commission rebate when you buy or sell your home!

We’ll Be There Every Step of the Way

Before you start house hunting, talk to one of our mortgage experts. They will outline all of your options and tailor a mortgage to your needs. As always, we will work to get you the best rates and terms to make sure you're getting the best loan for your financial situation.


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Disclosure: 
PMI is required when the loan-to-value on a Mortgage Loan is greater than 80%.
1 All loans are subject to credit approval. For complete details, visit our Mortgage Page or contact the Real Estate Department at 888.800.3328.
2 The Home Rewards Program is offered through Home Rewards Group, Inc. Home Rewards Group, Inc. is not affiliated with First Entertainment Credit Union. First Entertainment does not operate the material, and First Entertainment is not responsible for the content, which may not always represent the Credit Union's views. This does not constitute an endorsement of any product, service, or organization. First Entertainment Credit Union's Privacy Policy does not apply to third parties.