Purchase and refinances to $3 million with 680 FICO, 89.99% LTV.

DTI ratios up to 45%.

One appraisal needed up to $3 million for purchases.

Sources of income can include: Asset Depletion calculation and Restricted Stock Units.

Existing mortgage must be current (no more than 45 days late).

100% gift funds permitted from family members.

Mortgage and rental payments must be no worse than 1x30x12.

No derogatory event permitted in the most recent 4 years.

Jumbo loans fall outside the loan limits set by Fannie Mae or Freddie Mac and therefore cannot be purchased by them. Jumbo loans are also known as non-conforming loans – they do not conform to Fannie/Freddie loan limits.

In most counties, a loan greater than $548,250 is considered a Jumbo Loan. In counties with high median home values, such as Los Angeles, San Francisco and New York, a loan higher than $822,375 is considered a jumbo loan. To find out which limit applies in your county click here.

Lenders consider jumbo loans to be riskier since Jumbo loans are not insured by the Government like the FHA loans, nor can they be sold to Fannie Mae or Freddie Mac.

Since the loan amounts are larger and considered riskier, jumbo loans generally have less-favorable terms (LTV, DTI, FICO score, etc.)

Require at least 3 to 12 months cash/liquid asset reserves.

Some jumbo loans may require a second appraisal.

Jumbo loans may take longer to close since they are manually underwritten and require more supporting documentation.

Plan for 20% down payment even though 90%/95% LTV Jumbo loans are available. High LTV loans will have higher rates, fees and cash reserve requirements.

Have better credit scores or improve your cedit scores before applying for a Jumbo loan.

Be prepared to show a high, stable income and high liquid assets.

If you are a business owner or self-employed, you will need to provide personal tax returns, business tax returns and year-to-date profit and loss statements. Also needed are references to verify your employment status if you’re working as an independent contractor.

Consider a shorter-term Adjustable Rate Mortgage (ARM) loans, which usually have lower rates compared to fixed-rate loans, if you are planning to sell or pay off/re-finance the loan in a few years. The risk is if house prices do not appreciate in value then it will be harder to re-finance.

Plan for a longer closing period for Jumbo loans since they are manually underwritten and require higher level of supporting documentation.