Last Updated on May 27, 2023 by Eric Jeanette
Super Jumbo Mortgage
If you are in the market to purchase a very expensive home with a value in the millions, you may have difficulty finding a lender who can help finance the home for you. This is because all lenders have maximum loan amounts that fall below the amount you need to purchase the home.
What is a Super Jumbo Mortgage?
A jumbo mortgage is a loan that is greater than the conforming loan amount of $650,000. A super jumbo mortgage is typically described as a mortgage amount greater than $2 million.
In some instances luxury homes cost more than $5 million or even $10 million and it will take a special super jumbo mortgage lender to finance that type of property
Qualifying for a Super Jumbo Mortgage
When applying for a super jumbo mortgage, you will have three options:
- Provide your income documentation including tax returns
- Apply for a reduced documentation loan that may only ask for bank statements
- Apply for an asset based mortgage
We will review all of these options below and then you can determine which is best for you.
Full documentation Super Jumbo Mortgage
When qualifying full doc, the lender will ask for pay stubs and W2s of you work for a company. However if you are self employed the lender will use the income that you document on your tax returns to qualify for the super jumbo loan amount that you are looking for.
Applying for the mortgage using your full income documentation will provide the best avenue to secure the lowest down payment and interest rate. If you would like to see how much you can qualify for, then complete this short loan scenario form.
Super Jumbo Bank Statement Loan
Most people who are shopping for a multi million dollar home are self employed. One of the challenges that self employed borrowers face when qualifying for a mortgage is they often do not show enough income on their tax returns to qualify.
The bank statement loan is the mortgage program you will need if you are self employed with too many write offs. The lender will use the average monthly deposits into your bank accounts to determine how much you can qualify for.
There are lenders who offer this program, but not every lender will offer it in a super jumbo sized loan. We can help you to get a quote and pre-qualified for the loan amount you are looking for.
Read more about Bank Statement Loans.
Super Jumbo Asset Depletion Loan
A super jumbo asset depletion loan is a program that looks solely at your liquid assets when determining how much you qualify for. Liquid assets are considered to be balances in bank accounts, stock portfolios, retirement accounts, and more.
The lender will use the liquid asset balances, subtract any debt you have and then will determine the loan amount you can qualify for. Read more about asset depletion loans.
Super Jumbo Mortgage Credit Score Requirements
Super jumbo mortgages are riskier for the lender than a conventional mortgage. The risk factors related to such a high mortgage amount means lenders will ask for higher credit scores for super jumbo mortgages.
You should be prepared to have a 660 credit score or higher for a super jumbo mortgage. The higher the credit scores, the lower your down payment and interest rate will be.
Super Jumbo Mortgage Lenders
There are only a handful of lenders who offer super jumbo mortgages due to the risk factors associated with extremely large loans. The value of homes in the millions of dollars is also extremely volatile and most lenders do not have an appetite for the risk.
These are just a few lenders who may be able to help with a super jumbo mortgage. Keep in mind that each will have different credit score and down payment requirements. They all do not operate in every state and their maximum loan amount will vary.
We can help you to find the best option for your specific scenario and location.
Contact us here for a quote.
Where are super jumbo loans most common?
Super jumbo loans are most common in areas where most luxury homes exist. California, New York, New Jersey, Florida and Washington have the most homes where a super jumbo loan is likely to be used.