The Difference Between a Nice Home and Your Dream Home
  • No lender fees2
  • Up to $2,500 in lender credits1
  • Opportunity to get a larger loan for a more Expensive Property
  • Allows you to borrow more than Fannie Mae or Freddie Mac limits
What is a Jumbo Loan?

A Jumbo Loan is also known as a non-conforming loan as it does not conform to the specific rules of either Fannie Mae or Freddie Mac, two government agencies that guarantee loans. Specifically, there is a max limit that can vary depending on the location of the property. For 2022, if your loan is above $, you likely would need a Jumbo Loan.

Types of Jumbo Loans

What is a Jumbo Fixed-Rate Mortgage?

With a fixed-rate Jumbo Mortgage, your interest rate stays the same for the life of the loan (or term). Your interest rate will not change.

What is a Jumbo Adjustable-Rate Mortgage?

An Adjustable-Rate Mortgage (ARM) has an introductory period with a lower interest rate than a fixed-rate mortgage. After the introductory period has expired, the rate can move up or down with market changes.

Mortgage Knowledge Center

What is a Jumbo Loan?
What is a Conforming Loan?

What is the Power Buyer Advantage?

  • Compete with Cash buyers

  • Sure Sale - When Selling

  • Lock While You Shop

  • Fast Access to Equity
How Do I Get a Jumbo Loan?

You'll need the following to qualify for a jumbo loan for all borrowers:

  • A satisfactory credit score (700 or higher)
  • At least 2-year employment history
  • Proof of income - typically 1 - 2 months of paystubs
  • At least 1 year of W2s
  • Acceptable debt-to-income-ratio (DTI)
  • Minimum 6-months reserves required

Possible additional financial verification like:

  • Self-employment income (2 years of tax returns)
  • Current debts information (auto, alimony, credit card, etc.)
Disclosures Print Icon Print

1For eligible fixed rate, ARM, and VA loans PenFed offers to all members who submit a completed home purchase mortgage application on or after March 1, 2020. Members can receive the lender credit upon closing with PenFed, subject to qualification and approval. For loans $0-$199,999 the lender credit will be: $500. For loans $200,000-$699,999 the lender credit will be: $1,000. For loans $700,000 and up the lender credit will be: $2,500. Pre-Approvals and refinance applications are not eligible for the lender credit. The seller and/or other credits must be reduced if the loan has reached the maximum allowable credit limit per the loan product. Please contact your PenFed Mortgage Loan Officer for more details. The lender credit is available for all funded purchase mortgages in all states, including District of Columbia, Puerto Rico and Guam.

2Other fees may apply, such as discount points to buy down your rate.

3Qualified veterans with their full entitlement can borrow up to the country limit with no down payment. Veterans who have one or more active VA loans or who defaulted on a previous VA loan may be required to make a down payment.

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