Lake State Mortgage home
Text Shelby

Shelby Weller

Mortgage Loan Officer

Luxury & High-Balance

Jumbo Loans

Financing for luxury properties and competitive real estate markets where loan amounts exceed standard conforming limits.

Apply for a Jumbo LoanSchedule Private Review
$833K+
Starting Loan Amount
10-20%
Typical Down Payment
700+
Typical Min Score
High
Reserve Requirements

Beyond Conforming Limits

The Federal Housing Finance Agency (FHFA) sets a maximum limit on conventional loans. For most of Michigan in 2026, that limit is $832,750. If you need to borrow more than that amount, you need a Jumbo loan.

Portfolio Lending

Because Jumbo loans cannot be sold to Fannie Mae or Freddie Mac, they are kept on the balance sheets of banks or private investors (portfolio lending). This means there is no "standard" Jumbo loan. Every lender sets their own unique rules regarding down payments, credit scores, and reserves. We review available options to find terms that fit your specific financial profile.

Stricter Underwriting

Because the lender takes on massive risk holding a million-dollar loan, the underwriting process is significantly deeper.

  • Multiple AppraisalsMany Jumbo lenders require two independent appraisals to confirm the luxury property's value.
  • Cash ReservesYou must prove you have 6 to 12 months of mortgage payments saved in liquid or retirement accounts after closing.
  • Lower DTI LimitsDebt-to-Income ratios are usually capped strictly at 43% or 45%, unlike conventional loans that can push higher.

Jumbo Loan FAQs

Not always. In many economic environments, Jumbo rates are actually lower than or identical to conventional rates, as banks compete fiercely to acquire high-net-worth clients for their other financial services.

No. While 20% used to be the gold standard, we have access to portfolio lenders who will go down to 10% or even 5% down on Jumbo loans, though it will require a higher credit score and potentially mortgage insurance.

Self-employed jumbo borrowers face intense scrutiny. Lenders will require two years of complete personal and business tax returns, K-1s, 1099s, and year-to-date profit & loss statements.