Underwriting requirements for jumbo loans are typically stricter than for other loans due to the size of the loan. Here are some of the qualifications that lenders consider before approving borrowers for jumbo loans. Lenders often have higher credit score requirements for jumbo loans compared to other kinds of mortgages. CNBC states that borrowers typically need a credit score of 680 to be approved for a jumbo loan, and many lenders want 700 to 720 or higher. For jumbo loans, the maximum debt-to-income ratio that lenders might accept may be lower compared to other mortgages. Some lenders may accept a maximum DTI no higher than 45%. Lenders want to ensure you can afford your mortgage payment and other living expenses each month. Lenders might ask for a larger down payment to approve a jumbo loan. Down payment standards vary from lender to lender, however. The house must be appraised near the amount of the purchase price just like other types of mortgages. Some lenders require two appraisals.
Lenders may want to see larger cash reserves to cover your mortgage payments and living expenses when you get a jumbo loan. Just like with any mortgage, you'll have to provide income and financial documents that prove you can pay the loan back.