FHA Jumbo Loans are mortgages that exceed the conforming loan limits. Each county has a different loan limit set by HUD which can range in the 300,000’s to the low 700,000’s depending on the county average home price. If you’re applying for an FHA loan which exceeds the FHA loan limit, you would need to apply for an FHA jumbo loan.
How are FHA Jumbo Loans different?
There is really no difference in the application process for an FHA loan vs. an FHA jumbo loan. You would simply need to be able to qualify for a higher loan amount and would still be able to put as low as 3.5% down, as long as your total loan amount doesn’t exceed the max loan limit.
Say you wanted to purchase an $850,000 house but the max FHA loan limit in your area was 720,000. You would need to come in with a down payment of 130,000 or approx. 15% down.
Jumbo Loan Costs and Requirements
FHA Jumbo loans typically require a higher credit score and overall costs can also be higher than standard FHA mortgage loans.
These requirements can vary by FHA lenders, so it’s good to ask up front about any higher credit requirements for these mortgages. You may find credit problems with jumbo FHA loans may not be an issue with FHA mortgages that fall below the FHA loan limit.
Jumbo Loans And Down Payment Assistance
Down payment assistance is not allowed on FHA mortgages above $417,000, so FHA Jumbo Loan borrowers will need to budget for the down payment requirement.