What Is A Jumbo Loan?
Jumbo loans are a type of financing that exceeds the maximum loan amount limits set by the Federal Housing Finance Agency (FHFA). Jumbo loans are used to purchase high-value homes and may require a higher down payment than a traditional conventional loan. Conventional and Jumbo loans follow a similar process with a few notable differences.
- Jumbo loans often require two appraisals
- Jumbo interest rates tend to be 1% greater than conventional interest rates
- Jumbo loans may require 3 - 12 months reserves (PITIA) for the purchase and 2+ months reseves for any existing investment properties
Jumbo loan for your dream home
A 'conventional mortgage' is one that follows lending guidelines set by Freddie Mac and Fannie Mae. In Hawaii, the 2025 maximum conventional amount financed is $1,209,750. Any loan amount above graduates into the Jumbo Loan category. The loan process and servicing are similar to conventional except that the investor may have specific criteria they require to grant the final loan approval. Most jumbo loans under $4,000,000 require a 15% minimum down payment, loans above $4,000,000 require 20% minimum down payment.
Here are some examples:
Big Island Mortgages by Doug Mallardi
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