Dream Big with New Jumbo Loan Options

What is a Jumbo Loan? 

Jumbo loans are home financing options that offer a higher loan value than the standard limit. If you want to borrow more than the defined conventional limit ($766,550 in most areas in 2024), you’ll want to consider a Jumbo loan. 

Since these loans are greater than the limit set by the Federal Housing Administration (FHA), they aren’t backed by government agencies such as Fannie Mae and Freddie Mac. Private financial institutions can still create Jumbo loans, but they may have stricter requirements to offset any added risks. 

Overview of Our New Jumbo Loan 

Jumbo loans generally have stricter requirements, but our new Jumbo Loan options aim to give you more flexibility to afford your dream home. You have options that include choosing an adjustable-rate mortgage, using gift funds and even using this loan product for an investment property. 

Before we dive into the options, here’s an overview of what makes this loan different: 

• No private mortgage insurance required 

• Gift funds are allowed 

• First-time homebuyers may qualify 

• Interested party contributions are limited to 2%-6% based on occupancy type and loan-to-value (LTV) ratio 

Fixed-Rate Options 

Choosing a Fixed-Rate Jumbo Loan allows for more occupancy types and your choice of loan term. Here’s what to expect from the fixed-rate option: 

• 15-year or 30-year loan terms available 

• Available for primary residences, second homes and investment properties 

For one-unit, primary residences: 

• Minimum down payment: 10.1% 

• Minimum credit score: 740 (760 if self-employed) 

• Maximum debt-to-income (DTI) ratio: 36% 

• Loan amount must be over the conforming limit 

• Maximum loan amount: $1.5 million ($1 million for first-time homebuyers in most states) 

• Required reserves: 12 months of PITIA (Principal, Interest, Taxes, Insurance and Association Fees) 

• First-time homebuyers must have an additional 6 months of reserves 

• Self-employed homebuyers must have an additional 3 months of reserves 

Adjustable-Rate Options 

The Adjustable-Rate Jumbo Loan is only available for your primary residence. However, you’ll have some time to adjust to your payments with a period for 5-7 years with a set, usually lower, interest rate. 

• Available for primary residences only 

• Pay a fixed rate for the first 5, 6 or 7 years, depending on option chosen 

• After that period, your interest rate will change every 6 months based on the SOFR rate, a commonly used benchmark for interest rates 

For one-unit, primary residences: 

• Minimum down payment: 20% 

• Minimum credit score: 740 

• Maximum debt-to-income (DTI) ratio: 43% for credit scores of 720+, 40% for lower credit scores 

• Minimum loan amount: $600,000 

• Maximum loan amount: $2.5 million ($1 million for first-time homebuyers in most states) 

• Required reserves: 24 months of PITIA (Principal, Interest, Taxes, Insurance and Association Fees) 

• First-time homebuyers must have an additional 6 months of reserves 

• Self-employed homebuyers must have an additional 3 months of reserves 

Dream Big with A Jumbo Loan! 

We’re proud to offer a new option to help you secure the home of your dreams. The Jumbo Loan is one of several financing options for your next Lennar home. To learn if it’s the right choice for you, connect with one of our dedicated Loan Officers today. 

Get pre-qualified today to get started! 

Certain restrictions apply. The content provided herein is for informational purposes only. Nothing herein shall constitute legal, tax, investment or financial advice. No representation is made regarding the your ability to qualify for a home loan or the availability of a home loan product that meets your needs. 

Models/lifestyle photos do not reflect racial or ethnic preference. Lennar Mortgage, LLC - NMLS # 1058. Copyright © 2024 Lennar Corporation and Lennar Mortgage, LLC. All rights reserved. Lennar, the Lennar logo, Lennar Mortgage and the Lennar Mortgage logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries.