Large loan amounts
Jumbo
For home prices above conventional loan limits. Financing for higher-value properties.
A jumbo loan is a mortgage for an amount above the conforming loan limit, the maximum that Fannie Mae and Freddie Mac will buy. The limit is updated every year. With home prices in Boulder, much of the Denver metro and Colorado’s mountain towns, many buyers need financing above it.
Who a jumbo loan is a good fit for
- Buyers of higher-priced homes in the Front Range or the mountains
- Second-home buyers in resort areas
- Homeowners refinancing a large existing loan
- Buyers with strong credit, steady income and savings left over after closing
What lenders look for
Because the loan amount is larger, guidelines are stricter than for a conforming loan:
- Credit: a strong credit history
- Down payment: often 10% or more, depending on the lender and loan size
- Reserves: savings left after closing, often several months of payments
- Debt-to-income: usually tighter limits than conforming loans
Some very large loans also need a second appraisal.
Fixed or adjustable
Jumbo loans come in fixed-rate and adjustable-rate versions. An ARM can make sense if you expect to sell or refinance within the first several years.
Why shopping matters most here
Jumbo pricing and guidelines vary more from lender to lender than almost any other loan type. As an independent broker, we compare multiple jumbo lenders so you see real options, not just one bank’s offer.
Common questions
How do I know if I need a jumbo loan?
If your loan amount, not the home price, is above that year’s conforming limit. A larger down payment can sometimes keep you under it.
Can I avoid mortgage insurance?
Most jumbo loans don’t carry monthly mortgage insurance, even with less than 20% down.
Can I use a jumbo loan for a second home?
Yes. Many jumbo lenders finance second homes, with their own down payment and reserve requirements.
Buying above the conforming limit? Call us at 303-931-3239, or get prequalified online.