What is a super jumbo mortgage?

Category: Home purchase

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With all the different mortgage options out there, you may have heard about jumbo mortgages, which are home loans designed to finance purchases above a certain amount. These mortgages offer financing above $417,000 in most states, but can go up to $625,000 in other states. However, jumbo mortgages are also capped at a certain amount, and this is when super jumbo mortgages come in. With super jumbo mortgages, loans typically begin at $1,000,000 and are often capped at $5,000,000. If you are thinking about financing an expensive home, here’s what you need to know about super jumbo mortgages:

Qualifying for a super jumbo mortgage

Qualifying for any type of mortgage usually requires good credit history, so it’s no surprise that eligibility for a super jumbo mortgage is much more difficult—after all, this is a substantial amount of money that is being borrowed. You must have been timely with all of your other loans and credit cards, and have an excellent credit score and profile that reflects your favorable payment history. You shouldn’t have much debt overall or any negative marks on your credit report.


Although very important, lenders look beyond credit when reviewing an application for a super jumbo mortgage. The borrower must be able to make the payments, which will be substantial. This means the applicant must have strong employment history and an income that can comfortably afford super jumbo mortgage payments.

Down payment

When it comes to traditional mortgages, borrowers are often required to put down 10 percent of the home’s sale price. In many scenarios, however, borrowers will opt to put down at least 20 percent so that they can have lower mortgage payments and eliminate PMI, which also adds to their mortgage payments. With some mortgages, such as FHA or VA home loans, there may be little to no required down payment.

However, when it comes to super jumbo mortgages, down payment requirements are much different. In order to qualify for financing through a super jumbo mortgage, borrowers will usually need to make a down payment of at least 50 percent.

Loan terms for super jumbo mortgages

In an effort to make the monthly payments more affordable for the borrower, the majority of super jumbo mortgages are ARMs, or adjustable rate mortgages. This means that unlike a fixed-rate mortgage, the interest rate will vary over the course of the loan and reflect in the borrower’s monthly payments, causing them to rise and go down as interest rates rise and go down.


In addition to ARMs, many borrowers also take out interest-only mortgages when financing an expensive home with a super jumbo mortgage.

Super jumbo mortgage rates

Many banks will charge approximately one to two percent higher when compared to rates offered through jumbo mortgage rates. Due to the higher interest rates that you might face when financing through a super jumbo mortgage, it’s important to shop around first and carefully compare all offers before making a final decision.

Do you want to buy a home, but need cash for your down payment? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able to help. At Peachtree, we can purchase some or all of your future payments and you can receive your money sooner, in one lump sum. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash.


Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.

Tags: Jumbo mortgages, loans, mortgage rates, mortgages, super jumbo mortgages

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