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What to Know about Jumbo Financing

A jumbo loan is one way to buy a borrower can purchase a high-priced or luxury home. Since the limit on conforming loans is $424,100 in most areas of the country, a jumbo mortgage can allow a borrower to buy a home that exceeds these limits. So if you're considering a home with a high price tag or live in a high-cost area, have a lower debt-to-income ratio, a higher credit score, and a larger down payment, a jumbo loan may be right for you.

What is a Jumbo Loan and how do they Differ from a Standard Loan?

Looking to purchase a larger single-family home? You may be interested in knowing more about jumbo mortgages, which are home loans that exceed typical conforming limits. That means any home loan as of 2017 that exceeds loan servicing limits set by Fannie Mae and Freddie Mac - currently $424,100 in most parts of the US.

Here are a few other ways jumbo mortgages are different from standard loans:

  • Jumbo loans may require borrowers to have larger down payment requirements

  • Jumbo loans may require the borrower to have a higher qualifying credit score, due to the loan size and risk to the lender

  • Many Jumbo loan products require a borrower's Debt-to-Income (DTI) ratio capped at 43%

  • Jumbo loans may require additional documentation during the loan process

Programs offered by Sierra Pacific Mortgage

Sierra Pacific Mortgage has a wide variety of solutions and competitive pricing to meet non-conforming financing needs. Sierra Pacific Mortgage offers both fixed-rate and adjustable jumbo mortgage products. Add that to our award-winning customer service, and we’re sure to find the perfect loan for your luxury dream home. Here are a few of our most popular programs and features of our Jumbo Mortgage Products.

Sierra Choice Jumbo Features

  • Up to 90% loan-to-value for loan amounts up to $1 million

  • Mortgage insurance not required for loan-to-values greater than 80%

  • Business funds allowed for 100% of down payment or closing costs

  • Gift funds permitted up to 80% once borrower contributes 5% of own funds

  • Non-warrantable condos permitted (if requirements are met)

  • First-time homebuyer allowed up to $1 million

Sierra Expanded Jumbo Plus Features

  • Non-QM program

  • Debt-to-income ratio up to 48% allowed

  • Non-occupant co-borrower allowed

  • Ability to use projected income for qualifying purposes

  • Gaps in employment history considered on a case-by-case basis

Sierra Expanded Jumbo Features

  • First-time homebuyer allowed up to $1 million

  • Allows 100% of the value of stocks, bonds, and mutual funds for down payment or closing costs

  • Business funds allowed for down payment or closing costs

  • Gift funds allowed up to 80% after borrower contributes 5% from own funds

  • Rate/term refi nance with no seasoning when paying off first mortgage

Sierra Expanded Jumbo Plus Features

  • Non-QM program

  • Allows DTI up to 50%

  • Asset depletion allows for a rate of return of 3%

  • Gift funds allowed up to 80% after borrower contributes 5% from own funds

  • Business funds allowed for down payment or closing costs

  • Will consider gap employment

Sierra Delayed Purchase Refinance

In today’s competitive housing market, more buyers are using ‘all cash’ to purchase a home. Our delayed refinancing product allows buyers who pay cash for a home to obtain cash out using a refinance. All borrowers who purchase a property for cash are eligible for a cash-out refinance as long as the following requirements are met

Sierra Choice (QM) or Sierra Choice Plus (non-QM)

For projects that don’t meet FNMA condo project warranty guidelines, we have a solution for jumbo non-conforming loans:

  • Available for primary residence or second home

  • Up to 80% maximum LTV

  • And only one non-warrantable feature listed below may be permitted:

  • Up to 35% commercial space is allowed in a mixed-use property

  • One entity may own up to 25% of a project with more than 10 units

  • 30% of units must be sold in a new or converted project

  • Replacement reserves of less than 10%

Note: Available on Sierra Choice (QM) or Sierra Choice Plus (non-QM). Project must met FNMA Full Review Condo Warranty with exception of the one non-warrantable feature noted above.

If you are considering buying large home, I urge you to consider Sierra Pacific Mortgage as your next mortgage lender. Our team's dedication to helping our clients prove how we stand out from our competition. Read our past client reviews and testimonials here.


If you would like to know more about Jumbo Loan Programs available, please give me a call- I'm happy to help!

Franco Manueli

Branch Manager & Residential Mortgage Loan Originator

NMLS #332420

2580 St. Rose Pkwy., Suite #230

Henderson, NV 89074

Office: (702) 420-2250

Fax: (855) 689-6691



Note: These programs are subject to underwriting guidelines, which are subject to change without notice, which limit third party contributions. Not all borrowers will qualify. A Sierra Pacific Mortgage representative can provide specific program details. Some products and services may not be available in all states. Programs, rates, terms, and conditions are subject to change without notice. Subject to verification of borrower qualifications, property evaluations and credit approval. Terms and conditions apply. This is not a commitment to lend and not all borrowers will qualify. Sierra Pacific Mortgage Company, Inc. may not be the lender for all products offered. Some loans may be made by a lender with whom Sierra Pacific Mortgage has a business relationship. Sierra Pacific Mortgage Company, Inc. NMLS #1788. Nevada Commissioner of Mortgage License #3268. Additional license info available at: Equal Housing Lender.

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