43°F
weather icon Mostly Clear

What is a jumbo mortgage and how do you qualify?

A jumbo mortgage is a home loan for an amount that exceeds conforming loan limits established by regulation. The limit is $417,000 in most of the United States but is $625,500 in the highest-cost areas.

There are 3,143 counties in the United States (if you count Alaska’s boroughs, Louisiana’s parishes and the District of Columbia as counties, and exclude Guam, the Virgin Islands and Puerto Rico). Here’s the loan-limit breakdown for 2016:

• 2,916 counties have a limit of $417,000.

• 108 counties have a loan limit of $625,500. These are the highest-cost housing markets, such as Los Angeles, New York City and San Francisco.

• 115 counties have loan limits higher than $417,000 and lower than $625,500. These housing markets have higher-than-normal prices but not as high as, say, Los Angeles. An example is Denver County, Colorado, with a loan limit of $458,850.

• 4 of Hawaii’s five counties have limits between $657,800 and $721,050. (Limits are allowed to be higher in Alaska, Guam, Hawaii and the Virgin Islands under a long-standing regulation.)

Qualifying for a jumbo mortgage

The underwriting process for jumbo mortgages is similar to that of a conforming mortgage, except that jumbo lenders sometimes require two appraisals instead of just one.

Down payment requirements differ in many cases. Jumbo loans generally require higher down payments — depending on the lender, the minimum down payment could be 15 percent, 20 percent or 30 percent for home purchases.

Many lenders require a credit score of 700 or higher, a debt-to-income ratio of 43 percent or less, and six to 12 months’ worth of reserves.

THE LATEST
Downtown Summerlin is valley’s holiday headquarters

The parade’s final night is tonight — Dec. 21 at 6 p.m. Sponsored this year by InTouch Credit Union, the parade is free and open to the public.

Homebuilders to end year on positive note

The Las Vegas new-home market got off to a good start during the fourth quarter with a 41 percent year-over-year increase despite elevated interest rates putting a cap on sales. The valley is on pace to close with its highest share of new-home closings since 1992 as prices continue to hit record levels.

2025 mortgage predictions: your playbook for a winning year

After a year filled with rate swings, unpredictable markets and a bit of drama (thank you, inflation), the real estate world is ready for a fresh start.

Tri Pointe Homes opens Edgewood in Summerlin

The newest neighborhood to open in the award-winning master-planned community of Summerlin is Edgewood by Tri Pointe Homes.

Taylor Morrison unveils Opus at Cadence

Taylor Morrison’s Opus neighborhood at Cadence features modern homes that exude both comfort and adaptability. Comprising two collections, Melody and Harmony, homes inside Opus are priced from the mid-$400,000s, offering living spaces between 1,856 square feet and 2,779 square feet.

Summerlin offers multigenerational living home designs

With multigenerational living growing in popularity — adult kids returning home, and aging-in-place a growing preference for many older adults — larger homes with guest or in-law suites and first-floor primary suites top the must-have list of features for many homebuyers.

Tri Pointe’s Klif Andrews says he is excited about 2025

Tri Pointe Home Division President Klif Andrews said while the Las Vegas housing market has slowed at the end of the year, as it typically does, the builder is looking forward to unveiling three new projects in December and January and kick off 2025 on a strong note.

Summerlin offers homes ready for holiday entertaining

With the arrival of the holiday season, great rooms and cozy fireplaces take on greater significance within the home. According to Jenni Pevoto, senior director of master-planned community marketing for Summerlin, the community has an abundance of actively selling homes that feature large spacious great rooms — ideal for holiday gatherings with family and friends.

Riviera Vista debuts in Lake Las Vegas

Last weekend, Lennar celebrated the grand opening of Riviera Vista at Lake Las Vegas in Henderson. Riviera Vista is a new neighborhood offering two-story homes in the heart of the popular master-planned community.

Trilogy Sunstone begins new phase

Las Vegas-area homebuyers are invited to the grand opening of a brand-new phase of homesites at Trilogy Sunstone, an age-qualified community, within the Sunstone master plan in the northwest valley.