A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These limits vary by location and are higher than the limits for conventional or conforming loans.

Jumbo loan limits are determined based on the median home prices in a particular area. High-cost areas typically have higher jumbo loan limits than areas with lower home prices.

Jumbo loan requirements can vary among lenders, but borrowers generally need a strong credit history. A credit score of 700 or higher is often recommended, though some lenders may require higher scores..

Jumbo loans typically require larger down payments than conventional loans. The down payment requirement can vary but often falls in the range of 10% to 20% of the home's purchase price.

Interest rates for jumbo loans can be higher than those for conforming loans. The rates are influenced by factors such as market conditions, economic trends, and the perceived risk associated with larger loan amounts.

To qualify for a jumbo loan, borrowers should have a strong credit history, a stable income, and a substantial down payment. It's advisable to work with a mortgage professional to understand the specific requirements and navigate the application process successfully.

Jumbo loans can be used to finance various types of properties, including single-family homes, condominiums, townhouses, and even some types of investment properties. However, eligibility and requirements may vary.

Jumbo loan applications typically require thorough documentation, including proof of income, employment history, asset verification, and credit history. Lenders may request additional documentation to assess the borrower's ability to repay the larger loan.

Jumbo loans can be used to finance second homes and investment properties, but the eligibility criteria may be more stringent. Lenders may require higher down payments and have stricter underwriting standards for non-primary residences.

Some jumbo loans may be assumable, allowing a qualified buyer to take over the existing loan. However, assumability is not a common feature for all jumbo loans, and it depends on the specific terms set by the lender.

Prepayment penalties can vary among lenders, so it's essential for borrowers to review the terms of the loan agreement. Some jumbo loans may have prepayment penalties, while others allow borrowers to make additional payments or pay off the loan early without penalties.