Jumbo Loan

Down payment

How much of a down payment you will need depends on your lender. Most require larger down payments for jumbo loans. It’s not unusual for lenders to require a down payment of at least 20% for these riskier loans. If you are taking out a jumbo loan of $900,000, then, you might need a down payment as high as $180,000.

Credit score

You’ll generally need a higher credit score, too, when applying for a jumbo mortgage. How high depends on your lender, but some might require a FICO® Score of 720 or higher for borrowers looking for jumbo loans.

Debt-to-income ratio (DTI)

our debt-to-income ratio, or DTI, matters, too. Again, lenders will vary, but most want your total monthly debts, including your new mortgage payment, to equal no more than 43% of your gross

monthly income.

Loan-to-value ratio (LTV)

Your loan-to-value ratio, often referred to as your LTV, is a measure of your mortgage loan's size compared to the value of your home. To figure out your LTV, divide your loan's balance by its appraised value. Say you buy a home with an appraised value of $900,000. If you buy the home for that amount and come up with a 10% down payment -- or $90,000 -- you'll take out a mortgage of $810,000. Divide that $810,000 by your home's current value of $900,000 and you get an LTV of 90%.