Jumbo Loans for Higher-Priced Homes

Flexible Financing for Homes That Exceed Conforming Loan Limits
Whether you’re purchasing a luxury home, buying in a higher-cost market, or refinancing an existing jumbo mortgage, BankSouth Mortgage offers personalized financing solutions designed around your unique financial goals.

Jumbo loans provide financing above conforming loan limits established by the Federal Housing Finance Agency (FHFA). Because every borrower has a unique financial picture, our experienced loan officers take the time to understand your goals and help you explore financing options that fit your needs.

Whether you’re purchasing your primary residence, a second home, or certain investment properties, we’re here to help you move forward with confidence.

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What Is a Jumbo Loan?

A jumbo loan is a mortgage with a loan amount that exceeds the conforming loan limit established for the property’s location by the Federal Housing Finance Agency (FHFA). Because these loans exceed standard conforming limits, they offer financing solutions for borrowers purchasing higher-priced homes or refinancing larger mortgage balances.

Unlike conforming loans, jumbo loans are designed for financing needs above those established limits. Qualification requirements vary by loan program and lender, but they typically consider your overall financial profile, including factors such as income, assets, credit history, and available cash reserves.

Whether you’re financing your dream home, purchasing a vacation property, or refinancing a higher-value mortgage, jumbo financing may provide the flexibility you need.

Helpful to Know: Conforming loan limits are updated annually and may vary by county. You can view the current conforming loan limits on the Federal Housing Finance Agency (FHFA) website.

When Might You Need a Jumbo Loan?

A jumbo loan may be worth considering if your financing needs exceed the conforming loan limit for your area. While higher-priced homes are the most common reason borrowers choose jumbo financing, there are several situations where this type of mortgage may be appropriate.

You may benefit from a jumbo loan if you are:

  • Purchasing a higher-priced home
  • Buying in a competitive or higher-cost housing market
  • Seeking financing that exceeds standard conforming loan limits
  • Purchasing a second home
  • Financing certain investment properties
  • Refinancing an existing jumbo mortgage
  • Refinancing a loan balance above conforming loan limits

Every borrower’s situation is different. A BankSouth Mortgage loan officer can help you evaluate your financing needs and determine whether a jumbo loan or one of our refinancing options best fits your financial goals.

Jumbo Loan Features

Jumbo loans are designed to provide financing flexibility for borrowers whose mortgage needs extend beyond standard conforming loan limits. Depending on the loan program and your qualifications, they may offer financing solutions tailored to larger home purchases and more complex financial situations.

Higher Loan Amounts

Finance homes that exceed conforming loan limits with a single mortgage solution designed for higher-value properties.

Fixed-Rate and Adjustable-Rate Options

Choose a mortgage structure that aligns with your financial goals.

Fixed-rate mortgages offer consistent principal and interest payments throughout the loan term, while adjustable-rate mortgages generally begin with an initial fixed-rate period before adjusting according to the terms of the loan.

Financing for Multiple Property Types

Depending on the loan program, jumbo financing may be available for:

  • Primary residences
  • Second homes
  • Certain investment properties

Eligibility requirements vary by program.

Flexible Documentation Options

Some jumbo loan programs may offer alternative methods for documenting income for qualified borrowers with more complex financial situations, such as self-employed professionals or individuals with multiple income sources.

Available documentation options depend on the loan program and borrower qualifications.

Jumbo Loan Qualification Considerations

Because jumbo loans exceed conforming loan limits, lenders evaluate your overall financial picture when determining eligibility. While qualification requirements vary by loan program, lenders generally review several aspects of your financial profile when evaluating a jumbo loan application.

Credit Profile

Your credit history and overall credit profile are important factors in the qualification process. A strong credit profile may expand the financing options available to you.

Income and Employment

Lenders review your income and employment history to help determine your ability to repay the loan. Depending on your financial situation, income may be documented in different ways based on the loan program.

Assets and Cash Reserves

Some jumbo loan programs require borrowers to demonstrate available financial reserves after closing. Savings, investment accounts, retirement assets, and other eligible assets may be considered, depending on the program guidelines.

Down Payment

Minimum down payment requirements vary based on factors such as:

  • Loan amount
  • Property type
  • Occupancy
  • Loan program
  • Overall financial profile

Your loan officer can help you understand the requirements that may apply to your specific financing scenario.

Loan-to-Value (LTV) Ratio

The loan-to-value ratio compares the loan amount to the appraised value or purchase price of the home. LTV is one of several factors lenders evaluate during the underwriting process.

Jumbo Loans vs. Conforming Loans

While both jumbo loans and conforming loans are conventional mortgage products, they serve different financing needs.

The primary difference is the loan amount.

A Conventional Loan that meets the applicable conforming loan limits may be eligible for purchase by Fannie Mae or Freddie Mac if it also satisfies their underwriting guidelines.

A jumbo loan exceeds the applicable conforming loan limit and is designed for borrowers purchasing higher-priced homes or refinancing larger mortgage balances.

At a Glance

Conforming Loan Jumbo Loan
Meets FHFA conforming loan limits Exceeds FHFA conforming loan limits
Eligible for purchase by Fannie Mae or Freddie Mac if all requirements are met Not eligible because the loan exceeds conforming loan limits
Commonly used for a wide range of home purchases Designed for larger financing needs
Qualification requirements vary by program Qualification requirements also vary by program and borrower profile

The right mortgage depends on your financial goals, the property you’re financing, and the amount you need to borrow. A BankSouth Mortgage loan officer can help you compare available options and determine which loan best fits your needs.

Is a Jumbo Loan Right for You?

A jumbo loan may be an excellent option if you’re purchasing or refinancing a property that requires financing above conforming loan limits.

You may benefit from jumbo financing if you:

  • Need financing for a higher-priced home
  • Are purchasing in a higher-cost housing market
  • Have a strong overall financial profile
  • Need financing that exceeds conforming loan limits
  • Want personalized guidance throughout the mortgage process

Because every borrower’s financial situation is unique, the best way to determine whether a jumbo loan is right for you is to speak with an experienced loan officer who can review your goals and explain the financing options available.

Why Choose BankSouth Mortgage?

Financing a higher-priced home often involves more than simply borrowing a larger amount. At BankSouth Mortgage, we combine personalized guidance, responsive communication, and modern mortgage technology to help make the financing process as smooth as possible.

Personalized Mortgage Guidance

Your financial goals are unique. We take the time to understand your situation and help you explore financing solutions that align with your needs.

Experience with Complex Financing

Whether you’re purchasing a luxury home, refinancing an existing jumbo mortgage, or navigating a more complex financial profile, our team provides knowledgeable guidance throughout the process.

Modern Technology with Personal Service

Our ReadyLoan® digital mortgage platform allows you to apply online, securely upload documents, monitor your loan progress, and communicate with your loan team—all while receiving personalized support from experienced mortgage professionals.

A Relationship-Focused Approach

We believe buying or refinancing a home should be a straightforward experience. From your initial conversation through closing, we’re committed to providing clear communication and responsive service every step of the way.

Get Started with a Jumbo Loan

Whether you’re purchasing a higher-priced home, refinancing an existing jumbo mortgage, or exploring financing options above conforming loan limits, BankSouth Mortgage is here to help.

Our experienced loan officers will take the time to understand your financial goals, answer your questions, and help you explore mortgage solutions tailored to your unique needs. From your first conversation through closing, we’re committed to providing knowledgeable guidance and responsive service every step of the way.

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Frequently Asked Questions (FAQ)

A jumbo loan is a mortgage with a loan amount that exceeds the conforming loan limit established for the property’s location by the Federal Housing Finance Agency (FHFA). Jumbo loans help finance higher-priced homes and may also be used to refinance eligible mortgage balances above conforming limits.

A conforming loan meets the loan limits and eligibility guidelines established for Fannie Mae and Freddie Mac. A jumbo loan exceeds the applicable conforming loan limit and is considered a non-conforming mortgage. Both loan types are generally conventional mortgages because they are not insured or guaranteed by a government agency.

If the amount you need to borrow exceeds the conforming loan limit for the property’s location, a jumbo loan may be an appropriate financing option. A BankSouth Mortgage loan officer can help determine which loan programs may fit your financial goals and borrowing needs.

Qualification requirements vary by loan program, but lenders commonly review your overall financial profile, including factors such as your credit history, income, employment, assets, cash reserves, loan amount, and the property’s value.

Down payment requirements vary depending on the loan program, loan amount, occupancy, property type, and your financial profile. Your loan officer can explain the available options based on your individual circumstances.

Yes. Depending on the loan program and borrower qualifications, jumbo financing may be available for second homes.

Some jumbo loan programs are available for certain investment properties. Eligibility requirements vary by program.

Yes. Depending on the loan program, borrowers may have access to fixed-rate or adjustable-rate jumbo mortgage options. Your loan officer can help you compare available loan structures and determine which best aligns with your financial goals.

Yes. Jumbo loans may be used to refinance eligible mortgage balances that exceed conforming loan limits. Refinancing options depend on the loan program, property, and borrower qualifications.

Getting started is simple. Speak with a BankSouth Mortgage loan officer to discuss your financing goals or begin your application online through ReadyLoan®. We’ll help you explore your options and guide you through every step of the mortgage process.

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Telephone: (678) 551-7120
Toll Free: (833) 540-7120

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BankSouth Mortgage Company, LLC, NMLS #690971, is a wholly owned subsidiary of BankSouth, NMLS #688851, a federal savings bank and Member FDIC. BankSouth Mortgage Company, LLC, is not a bank or other depository institution and is not FDIC-insured. Alabama Consumer Credit License #MC 21415 DBA LoanSouth Mortgage.