Loan Products
Jumbo Loan Types
Compare fixed-rate, ARM, interest-only, VA, and super jumbo loan options to find the perfect financing for your luxury property.
Quick Comparison
| Type | Rate Range | Down Payment | Min Credit | Terms | Best For |
|---|---|---|---|---|---|
| Fixed-Rate | 6.50-7.25% | 10-20% | 700+ | 15/20/30yr | Long-term stability |
| ARM | 6.00-6.75% | 10-20% | 700+ | 5/1,7/1,10/1 | Short-term savings |
| Interest-Only | 6.50-7.50% | 20-25% | 720+ | 5-10yr I/O | Cash flow flexibility |
| VA Jumbo | 6.25-7.00% | 0% | 680+ | 15/20/30yr | Military borrowers |
| Super Jumbo | 6.75-8.00% | 25-35% | 740+ | Custom | $2M+ purchases |
Fixed-Rate Jumbo Loans
A fixed-rate jumbo loan locks your interest rate for the entire life of the loan. Your monthly principal and interest payment never changes, providing complete predictability for budgeting. This is the most popular jumbo loan type, chosen by approximately 70% of jumbo borrowers.
Best For
- Borrowers planning to stay in the home long-term (7+ years)
- Those who want predictable monthly payments
- Buyers in a rising interest rate environment
- Risk-averse borrowers who prioritize stability
Requirements
Minimum 700 credit score, 10-20% down payment, 43% max DTI, 6-12 months reserves. Self-employed borrowers need 2 years of tax returns.
Advantages
- +Rate never changes for the life of the loan
- +Predictable monthly payments for easy budgeting
- +Protection against rising interest rates
- +Available in 15, 20, and 30-year terms
- +Easier to compare offers between lenders
Considerations
- -Higher initial rate than ARM options
- -Less flexibility if rates drop significantly
- -30-year term means more total interest paid
- -May not be ideal for short-term ownership
Adjustable-Rate Jumbo (ARM)
Jumbo ARM loans offer a lower initial fixed rate for a set period (5, 7, or 10 years), after which the rate adjusts annually based on a market index plus a margin. The initial rate is typically 0.50-1.00% lower than comparable fixed-rate jumbo loans, which can mean significant monthly savings during the initial period.
Best For
- Borrowers planning to sell or refinance within 5-10 years
- Those who expect income to increase
- Investors who want to maximize cash flow initially
- Buyers in a declining rate environment
Requirements
Minimum 700 credit score, 10-20% down payment, 43% max DTI, 6-12 months reserves. Lenders may stress-test at a higher rate for qualification.
Advantages
- +Lower initial interest rate saves money upfront
- +Potentially thousands saved during the fixed period
- +5/1 ARM on $1M saves ~$300-500/month vs 30yr fixed
- +Rate caps limit how much the rate can increase
- +May qualify for a larger loan amount
Considerations
- -Payment uncertainty after the initial fixed period
- -Rate could increase significantly at adjustment
- -More complex to understand than fixed-rate loans
- -Risk of payment shock when rate adjusts
- -Harder to budget for long-term
Interest-Only Jumbo Loans
Interest-only jumbo loans allow borrowers to pay only the interest portion for an initial period (typically 5-10 years), significantly reducing monthly payments during that time. After the interest-only period, the loan converts to a fully amortizing loan with higher payments covering both principal and interest.
Best For
- High-income borrowers with variable compensation (bonuses, commissions)
- Self-employed professionals with fluctuating income
- Real estate investors maximizing cash flow
- Borrowers who invest the payment difference elsewhere
Requirements
Minimum 720 credit score, 20-25% down payment, strong reserves (12+ months), demonstrated ability to afford fully amortized payment.
Advantages
- +Dramatically lower payments during I/O period
- +On $1M at 6.75%: $5,625/mo I/O vs $6,488/mo fully amortized
- +Frees up capital for investments or business
- +Flexibility to make principal payments when cash flow allows
- +Tax benefits may be maximized during I/O period
Considerations
- -No equity built during I/O period (without extra payments)
- -Payment shock when I/O period ends
- -Higher total interest paid over the life of the loan
- -Stricter qualification requirements
- -May require larger reserves
Jumbo VA Loans
Jumbo VA loans allow eligible veterans, active-duty service members, and surviving spouses to finance luxury properties with no down payment and no PMI. Since the Blue Water Navy Vietnam Veterans Act of 2019, there is no official VA loan limit for borrowers with full entitlement, making jumbo VA loans an exceptional benefit for qualified military borrowers.
Best For
- Veterans and active-duty military buying expensive homes
- Military borrowers who want to preserve cash (no down payment)
- VA-eligible borrowers in high-cost housing areas
- Those who want to avoid PMI regardless of down payment
Requirements
VA eligibility (DD-214 or Statement of Service), Certificate of Eligibility (COE), 620+ credit score (lender overlay typically 680-700), stable income documentation, residual income requirements.
Advantages
- +No down payment required (even on million-dollar homes)
- +No private mortgage insurance (PMI)
- +Typically lower rates than conventional jumbo loans
- +No prepayment penalties
- +Funded by VA guarantee, reducing lender risk
- +Can be combined with a conventional second mortgage
Considerations
- -VA funding fee applies (1.25-3.3% of loan amount)
- -Must meet VA eligibility requirements
- -Property must meet VA minimum property requirements
- -Not all lenders offer jumbo VA loans
- -May take longer to close than conventional jumbo
Jumbo Refinance
Jumbo refinancing replaces your existing mortgage with a new jumbo loan, potentially at a better rate or different terms. Rate-and-term refinancing simply changes your rate and/or loan term, while cash-out refinancing lets you tap your home equity for other financial needs.
Best For
- Homeowners with existing jumbo loans at higher rates
- Those wanting to switch from ARM to fixed rate
- Borrowers looking to shorten their loan term
- Homeowners with significant equity seeking cash-out
Requirements
Minimum 700 credit score, 20%+ equity for rate-and-term, 25-30% equity for cash-out, 43% max DTI, 6-12 months reserves, current on existing mortgage payments.
Advantages
- +Lower monthly payments with reduced rates
- +Convert from ARM to fixed for stability
- +Shorten term to build equity faster
- +Cash-out option for renovations, investments, or debt consolidation
- +May eliminate PMI if equity has increased to 20%+
Considerations
- -Closing costs typically 2-5% of loan amount
- -Cash-out refinance resets amortization
- -May extend time to payoff
- -Need sufficient equity for qualification
- -Rate must be significantly lower to justify costs
Super Jumbo Loans ($2M+)
Super jumbo loans finance ultra-high-value properties, typically starting at $2 million and going up to $10-30 million with specialized lenders. These are portfolio loans held by private banks and specialty lenders, often with customized terms tailored to high-net-worth borrowers.
Best For
- Ultra-high-net-worth individuals purchasing luxury estates
- Buyers of properties valued at $2M+
- Borrowers with complex financial situations (trusts, LLCs, foreign income)
- Those seeking white-glove, personalized service
Requirements
Minimum 740 credit score, 25-35% down payment, 12-24 months reserves, significant liquid assets, 43% max DTI, may require relationship with lending institution.
Advantages
- +Finance properties up to $30M+ with select lenders
- +Customized terms and structures
- +Relationship-based pricing from private banks
- +May accept alternative documentation (asset-based lending)
- +Interest-only and other flexible options available
Considerations
- -Higher interest rates than standard jumbo loans
- -Very strict qualification requirements
- -May require two appraisals
- -Limited lender options
- -Larger reserves required (12-24 months)
- -Longer closing timeline
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Loan Types FAQ
Common questions about jumbo mortgage products.