Contributor, Benzinga
October 16, 2023

The Federal Housing Financing Agency is a government agency that sets a home loan conforming limit. If a home loan is greater than this limit, it is categorized as a jumbo mortgage. Not every lender offers a jumbo loan, but there are several jumbo mortgage lenders that specialize in financing expensive homes and larger loan amounts.

If you are in the market for a home and considering a jumbo loan you may be wondering how jumbo mortgage rates differ from other loans. Take a look at some specifics on jumbo mortgages and a few lenders who offer these unique loans.

The Best Jumbo Mortgage Rates

Jumbo mortgage loan rates, like all mortgage loan rates, are constantly changing. Use the table below to get a better idea of what some of the largest mortgage lenders are currently charging for nonconforming loan access. 

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The Best Jumbo Mortgage Lenders

Not all lenders offer nonconforming loans, and some lenders offer better jumbo mortgage rates than others. When you are searching for a loan, it’s always a good idea to evaluate all of your options to find your ideal lender. The following are a few of Benzinga’s favorite mortgage lenders offering jumbo loan options and what they bring to you as a borrower. 

Best for A Variety of Options: New American Funding

New American Funding also offers jumbo loans, with loan amounts of up to $3 million. New American allows jumbo mortgagees to use a co-signer — someone who won’t be living in the home but who can sign on the loan to help a buyer qualify. When dealing with larger and more expensive homes, this can be a key feature if your debt-to-income ratio is not sufficient with other lenders.

The biggest advantage to New American today is its 5 Year Rate Protection Pledge. New American offers buyers the ability to refinance without lender and appraisal fees at any time in the next five years if their rates become more favorable, assuring its buyers get the best rate possible. If you’re concerned about locking into a high rate and would like the assurance that you will get the best deal in the future, check out New American’s loan offerings.

Pros

  • The Rate Protection Pledge is something that helps lower-income borrowers who want to make sure they can save as much money as possible
  • The DTI with this platform is much more attainable than others

Cons

  • Even with rate protection, remember that other factors can increase your mortgage payments

Best for Self-Employed Borrowers: CrossCountry Mortgage

Self-employed people or contractors typically experience more difficulty when securing financing, especially for jumbo loans. Many mortgage providers make these prospective buyers provide a great deal of additional information and occasionally will offer only higher rates or not loan to self-employed people at all. CrossCountry Mortgage has special programs in place for people who might not qualify in a traditional way. 

CrossCountry has programs that allow for qualifications based on an investor’s potential cash flow, bank statements, 1099 documents or liquid assets. It also offers financing based on additional documentation and, on occasion, to foreign nationals.

Pros

  • This platform does work well for the self-employed, but it can serve anyone who needs a mortgage
  • The documentation requirements are much simpler and easier to understand

Cons

  • You may secure financing through this platform, but there’s no guarantee you will get the money you need to push forward

Best for Flexible Mortgage Options: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions offers standard financing options but mostly markets its services for non-qualified mortgage (QM) loans such as portfolio lending, investment loans and jumbo mortgages. With offerings for very well-qualified buyers with favorable terms, as well as a program for buyers with less than stellar credit, Angel Oak can provide you with a customized solution when buying a large or expensive home. 

All of Angel Oak’s jumbo loan programs can be used for primary residences, second homes or investment properties. Angel Oak’s Gold Prime Jumbo Loan offers the most-qualified buyers up to a 50% debt-to-income ratio, a down payment as low as 10% and loan amounts of up to $3.5 million.

The Non-QM Platinum Jumbo loan allows buyers who have faced bankruptcy or foreclosure more than four years ago to obtain a jumbo loan and offers a one-year tax return program. With flexible options to meet your needs, Angel Oak can be a great option for jumbo mortgages.

Pros

  • Angel Oak has a specific jumbo loan program that’s right for more expensive properties
  • You can apply online or reach out to the platform for additional support, allowing you to customize your experience

Cons

  • There’s no guarantee that you will be approved or receive the exact funding that you need

Best for Online Mortgages: Rocket Mortgage

Rocket Mortgage LLC is one of the leading online home lenders in the country, providing favorable jumbo mortgage rates and a simple lending process. Rocket Mortgage is best known for its straightforward financing and application process, which can be completed entirely online for most buyers. 

Rocket Mortgage’s jumbo mortgages are available for up to $2.5 million purchases or refinances on primary residences, secondary residences or investment properties. The qualification standards for Rocket Mortgage’s loans are also relatively simple: Buyers must have a minimum 680 credit score, pay 2% to 6% in closing costs, have a debt-to-income ratio of 45% or lower, and in most cases, the loan-to-value ratio must be less than 90%.

Pros

  • Online applications bring the mortgage lending process to those in remote or rural areas
  • While you can apply online, there are still options to receive just as much service as you would with any other lender

Cons

  • It’s possible that the lender may not have the funding options that are specific to your needs

Best for Non-Conforming Mortgages: North American Savings Bank

North American Savings Bank (NASB) is another large lender that uses its resources and experience in lending to provide consumers with several nontraditional mortgage options, including jumbo mortgages. NASB’s jumbo loan program features some unique qualification standards, including a 43% maximum debt-to-income ratio, a maximum loan amount of $1.25 million and a minimum of 10% down.

While this maximum loan amount is lower than most competitors, one big advantage NASB offers comes to buyers who may have experienced financial hardship in the past. These jumbo loans can be obtained two years after bankruptcy and four years after a foreclosure or short sale. This can be ideal if you want to buy another home in a high-value area without waiting seven years for your bankruptcy to be removed from your credit report

Pros

  • The bank has a wide range of loans available that go beyond jumbo mortgages
  • There are options for those who have less than stellar credit

Cons

  • NASB is headquartered in Kansas City, meaning that you may not get the personal service you might have been looking for

What is a Jumbo Loan?

The Federal Housing Financing Agency (FHFA) is a government agency that sets a conforming limit on home loans. Properties with loans smaller than the conforming limit can be sold on the secondary market and are within Freddie Mac and Fannie Mae’s financing limits.

For the vast majority of the country, the conforming limit is $647,200. Any loan larger than this amount is considered a jumbo loan. Larger cities and states with high home values like Alaska and Hawaii can have limits set at up to $970,800.

Jumbo loans are similar to typical home loans except for the fact that they are for higher amounts and occasionally carry higher rates. Veterans Affairs (VA) and Federal Housing Authority (FHA) programs can be used in conjunction with jumbo loans, and these loans can be fixed or adjustable-rate mortgages. Because jumbo loans cannot be sold on the secondary market, the lender who issues your loan will service it for the life of the loan.

In 2023, the FHFA increased the conforming limit to $726,000. For outlying areas, the limit rose to $1,089,300.

How Are Jumbo Mortgage Rates Set?

Just like any mortgage, jumbo loan rates are set by market conditions. You might assume that, because a jumbo loan is larger, a bank might want to mitigate its risk by charging a higher rate, but that is rarely the case. The factors that influence standard mortgage loan rates (like geopolitical conditions and inflation) also play a role in the price you’ll pay for a jumbo loan. 

Jumbo mortgage rates will be the best for the most-qualified buyers. This means that you can improve your credit and take other personal steps like saving a larger down payment to lower the rates lenders offer to you. 

Frequently Asked Questions

Q

What are current jumbo interest rates?

A

Jumbo interest rates can be found at around 6.81% for a 30-year mortgage and around 6.07% for a 15-year loan.

Q

Are mortgage rates higher on jumbo loans?

A

No, most mortgage lenders charge interest rates similar to conventional loans on jumbo loans. 

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Sarah Horvath

Sarah Horvath is a distinguished financial writer renowned for her expertise in mortgage content. With years of experience in the mortgage industry, Sarah offers invaluable insights into home financing, refinancing, and real estate trends. Her comprehensive understanding of mortgage products, coupled with her ability to simplify complex financial concepts, makes her a trusted resource for homebuyers and homeowners alike. Sarah’s dedication to providing accurate and actionable information empowers readers to navigate the mortgage process with confidence. Whether discussing mortgage rates, loan types, or tips for homeownership, Sarah’s writing is characterized by clarity, reliability, and a commitment to helping individuals achieve their homeownership goals.