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Jumbo Loans

Jumbo loans are mortgage loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. For 2025, the conforming limit is $806,500, so any loan amount above this is considered a jumbo loan.

Because jumbo loans aren’t backed by government-sponsored entities, they have stricter qualification requirements. However, they’re an excellent choice for buyers purchasing high-value properties or homes in competitive real estate markets.

Pros of jumbo Loans

Cons of jumbo Loans

7/1 ARM Product from BWC

Looking for a way to lower your monthly payments while keeping your options open? BWC offers a 7/1 Adjustable-Rate Mortgage (ARM) for jumbo loans.

How It Works: Enjoy a fixed interest rate for the first 7 years, then transition to an adjustable rate for the remainder of the loan term.

Who It’s For: Perfect for buyers who plan to refinance or sell their property before the 7-year mark, or those looking for lower upfront payments.

Why Choose This: A 7/1 ARM can offer significant savings compared to fixed-rate jumbo loans.

Who Is a jumbo Loan
Perfect For?

Image by Daniel Barnes

Jumbo loans are ideal for:

  • Buyers purchasing luxury homes or properties in high-value markets.

  • Borrowers with strong credit (700+) and a history of stable income.

  • Homebuyers who want to avoid splitting their mortgage into two loans.

  • Anyone needing a loan amount higher than the conforming limit of $806,500.

  • Buyers looking for flexible options like BWC’s 7/1 ARM product

How to Qualify for a Jumbo Loan

While requirements vary by lender, here’s what you typically need:

  1. Higher Credit Score: A score of 700 or above is usually required.

  2. Low Debt-to-Income Ratio: Keep your DTI under 43%.

  3. Large Down Payment: Plan for 20% down, depending on the loan amount.

  4. Robust Cash Reserves: Many lenders require proof of additional savings to cover several months of payments.

Luxury Home

Ready to buy your next home?

Looking to buy your dream home? A jumbo loan could be the perfect solution. Contact us today to learn more about our flexible options, including the 7/1 ARM product, and start your application with confidence.

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