Best Jumbo Mortgage Lenders of 2019
Owning a home is a dream for many people, but in some geographic areas where home prices are sky-high, that dream is much harder to reach. If you need to borrow an unusually large amount of money to purchase a house, you may need to get a jumbo loan instead of a conventional mortgage.
Jumbo loans are large mortgage loans that exceed limits set by the FHFA’s conforming limits. Fannie Mae and Freddie Mac will not purchase, guarantee, or secure jumbo loans, which means they can sometimes be riskier for lenders than conforming mortgage loans.
However, if you need a jumbo loan, you’ll still find a number of loan options. We’ve analyzed the best jumbo mortgage lenders on the market to help make your search for the right home loan easier.
On this page:
- LendEDU’s 5 Best Jumbo Mortgage Lenders
- How do I Know if I Need a Jumbo Loan?
- How to Find the Best Rates
LendEDU’s 5 Best Jumbo Mortgage Lenders
We’ve analyzed the top jumbo mortgage lenders to help you compare the best options when borrowing for your home. Here are our top picks.
1) SunTrust
SunTrust provides both purchase and refinance loans, including jumbo loans. You can also get government-guaranteed home loans—including FHA loans, VA loans, and USDA loans—as well as home equity loans.
You can track your loan application progress online, but the lender also has some physical locations for support from in-person loan officers.
Here’s what you need to know about SunTrust’s jumbo mortgage program:
- Overall LendEDU rating: 5.00 / 5.00
- Maximum loan amount: suntrust-mortg-1556-amounthigh
- Maximum LTV: 89.99%
2) New American Funding
New American Funding also offers purchase loans, refinance loans, home equity loans, and loans backed by the government including FHA, VA, and USDA loans.
Jumbo loans are available in both fixed and adjustable-rate options. Those without perfect credit may be able to qualify as New American uses manual underwriting.
Here’s what you need to know about New American’s jumbo mortgage program:
- Overall LendEDU rating: 4.91 / 5.00
- Maximum loan amount: newamericanfunding-mortg-1526-amounthigh
- Maximum LTV: [newamericanfunding-mortg-1526-ltvhigh]
- Loan terms: newamericanfunding-mortg-1526-termlengthrange_y
- ARM range: newamericanfunding-mortg-1526-armrange
3) Bank of America
Bank of America provides loans to purchase or refinance a home, and loans to tap into home equity. There are both fixed and adjustable-rate mortgage options available for conventional and jumbo loans. And government loans including FHA and VA loans can be obtained as well.
BOA helps with down payment assistance programs and has an online application process.
Here’s what you need to know about Bank of America’s jumbo mortgage program:
- Overall LendEDU rating: 4.42 / 5.00
- Maximum loan amount: bankofamerica-mortg-1496-amounthigh
- Maximum LTV: [bankofamerica-mortg-1496-ltvhigh]
- Term lengths: bankofamerica-mortg-1496-termlengthrange_y
4) Better
Better allows you to complete the mortgage application process online and charges minimal fees.
You can get a conventional or jumbo loan, including loans to purchase or refinance a home. Fixed-rate mortgages and ARMs are available, and you can opt for an FHA loan if you want a government guarantee on a conventional loan.
Better doesn’t disclose the terms of its jumbo loan program specifically, but here’s what you need to know about the lender’s overall mortgage program:
- Overall LendEDU rating: 4.33 / 5.00
- Maximum loan amount: better-mortg-1493-amounthigh
- Minimum down payment: better-mortg-1493-downpaymentlow
- Loan terms: better-mortg-1493-termlengthrange_y
- ARM range: better-mortg-1523-armrange
Read our full Better Mortgage Review.
5) SoFi
SoFi provides no government-backed loans but does offer loans to purchase or refinance a home. You’ll have your choice of a fixed or adjustable-rate mortgage and can secure a jumbo or conventional loan.
SoFi also allows you to complete your application online, and it is willing to work with self-employed home buyers to consider non-traditional income sources.
Here’s what you need to know about SoFi’s jumbo mortgage program:
- Overall LendEDU rating: 4.21 / 5.00
- Maximum loan amount: sofi-mortg-1519-amounthigh
- Minimum down payment: [sofi-mortg-1519-downpaymentlow]
- Loan terms: sofi-mortg-1519-termlengthrange_y
How We Chose the Best Jumbo Mortgage Lenders
To find the best jumbo mortgage lenders, LendEDU analyzed and rated “large mortgage” companies using the weighted average of 11 different data points. We considered the following factors:
- Better Business Bureau Rating (5%)
- Trustpilot Rating (5%)
- States Available (5%)
- Lender Fees (5%)
- Application Fees (5%)
- Online Application (5%)
- Customer Support (10%)
- Zillow Rating (5%)
- Fixed Terms (15%)
- Minimum Percentage Down (20%)
- Maximum Borrowing Limit (20%)
How Do I Know if I Need a Jumbo Loan?
You may need a jumbo loan if you must borrow a high amount relative to housing prices in your region. The specific threshold at which a loan becomes a jumbo loan will vary depending on where you live. Loan limits also change annually.
- For 2019, loans exceeding a limit of $484,350 are considered jumbo loans in most parts of the country.
- In certain high-cost areas, any loans for amounts greater $726,525 will be considered a jumbo loan.
How to Find the Best Rates
Historically, rates on jumbo loans were higher because these loans were considered riskier since lenders couldn’t resell them to Fannie Mae or Freddie Mac—two of the country’s biggest mortgage loan buyers.
In recent years, however, average jumbo mortgage rates have actually been lower than interest rates on conventional loans.
>> Read More: 30-Year Mortgage Rates
To find the best rate on a jumbo loan, it’s important to compare quotes from at least three different jumbo loan lenders. Your own financial situation, including your credit score, debt-to-income ratio, and the size of your down payment, will affect the rates you are offered.
By providing some basic financial information to lenders online you can usually get pre-qualified and get an idea of the rates and terms available. This will help you to see which lender will work best for you.
Keep Reading
Curious how much a jumbo mortgage loan could end up costing you each month? Check out our mortgage calculator. Still unsure which lender is right for you? Read our list of the overall best mortgage lenders.
The post Best Jumbo Mortgage Lenders of 2019 appeared first on LendEDU.