Module 15: Specialty Loan Products

Any loan exceeding the conforming loan limit ($806,500 for most areas in 2025) is a jumbo loan. Jumbo loans are not sold to Fannie Mae or Freddie Mac — they are retained in portfolio or sold to private investors. Because there is no GSE safety net, lenders apply their own guidelines, which vary considerably. How Jumbo Guidelines Differ Credit score: Most programs require 720+; many require 740+ for best pricing. Down payment: Typically 10–30%, varying by loan amount and lender. DTI: Most programs cap at 43–45%. Some require 38–40%. Reserves: 6–24 months is common. Appraisal: Many programs require two appraisals for loan amounts above a threshold (commonly $2M). Asset Depletion Income Some jumbo programs allow calculating qualifying income from liquid assets. Example: $3,000,000 in liquid assets × 70% = $2,100,000 ÷ 360 months = $5,833/month in qualifying income from assets. Benefits retirees and high-net-worth individuals with significant assets but limited traditional income.