A jumbo mortgage is a home loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, which means it isn’t backed by those government-sponsored entities.

Because of that, jumbo loans work a bit differently than standard mortgages:

• Larger loan amounts: You can borrow more than conventional limits to finance higher-priced homes.
• Lender-held risk: Since the loan isn’t sold to Fannie Mae or Freddie Mac, the lender keeps more of the risk.
• Stricter qualification: Lenders typically look for stronger credit, stable income, and lower debt levels.
• Flexible structures: Some lenders offer options like lower down payments or no PMI for well-qualified borrowers.
• Rates and terms vary: Interest rates, down payments, and requirements depend on your financial profile and the lender.

In short, a jumbo mortgage functions like a traditional home loan but is designed for higher-value properties and borrowers who can meet more rigorous financial criteria.

A jumbo mortgage is any home loan that exceeds the conforming loan limits set for conventional mortgages in a particular area. Jumbo loans are often used to buy higher-priced homes in competitive housing markets.

The conforming loan limit is the maximum value for loans that federally-backed loan guarantors like Fannie Mae and Freddie Mac are prepared to back. Conforming limits vary from area to area. The current conforming limit for homes in many parts of the greater Richmond area is around $832,750*.

*This amount is subject to change and varies by location.

There is no specific credit score required to qualify for a jumbo mortgage. Lenders do look closely at your credit score, but in combination with a lot of other factors such as your income, employment history, and debt levels. Generally speaking, however, you will require a higher credit score to qualify for a jumbo mortgage than you would for a conforming loan.

Down payments required for a jumbo mortgage are often similar or slightly higher than those required for conventional loans — usually between 10-20% of the value of your home, depending on how well qualified you are. Argent Credit Union accepts down payments as low as 5% for well-qualified borrowers.

Lenders like credit unions and banks advertise interest rates and APRs for loans, but these are generally the lowest rates offered to the best-qualified borrowers. The rate you receive on your jumbo loan depends on factors such as your credit score, income, and the size of your down payment. Your APR may be slightly higher than the interest rate because it includes certain loan fees in one combined figure.

Many borrowers apply for a 30-year fixed-rate jumbo mortgage because it offers predictable monthly payments and spreads the cost of their property over a longer period. Some buyers prefer to choose shorter terms (10, 15, or 20-year loans) to pay off the loan faster and reduce total interest, but this option usually comes with higher monthly payments. The term you choose depends on your financial situation today and your plans for the property in the years ahead.

Yes, you can refinance your jumbo mortgage to secure a lower interest rate, reduce your monthly payment, or shorten your loan term. However, it’s generally best to wait at least a year or two so you can build some home equity and strengthen your financial situation in order to qualify for better terms.

Many jumbo mortgages do not require private mortgage insurance, even if the down payment is less than 20%, because the loan is not backed by a federal guarantor. However, requirements do vary depending on your lender and the size of your down payment. Some lenders may instead require stronger credit or additional financial reserves to back up a lower down payment.

Timelines for loan approval and processing vary widely depending on the specific details of your application and how quickly the necessary documents are provided. In most cases, the process takes between 30 and 45 days from application to closing. Being organized and responding quickly to requests for documents from your lender can help keep the process moving smoothly.

You should expect to provide both a form of identification and your Social Security number, as well as proof of income such as bank statements, W2s, or even your tax return. If you are self-employed or a sole proprietor, you will need to provide further documents to establish your income. Expect also to be asked about your recurring expenses as well as sources of debt.

Yes, you do need to become a member, and we can help you join as part of your home loan application. Membership eligibility is open to individuals living, working, attending school, worshiping, or volunteering in the following counties:

• Chesterfield
• Henrico
• Hanover
• The City of Richmond

Membership is also available to family members or housemates who meet the above criteria. To be eligible, members must be at least 18 years of age and be a U.S. citizen or resident alien.

Argent Credit Union is a member-owned financial cooperative, which means it focuses on serving its members rather than outside investors. Our profits are returned to members through competitive rates, lower fees, and personalized financial services. That means you’ll get a better interest rate, lower closing costs, and more support than you will from many other Richmond-area lenders.