Summary

  • A jumbo loan is a type of mortgage that exceeds the required limits set by Fannie Mae and Freddie Mac.
  • Jumbo loans must be maintained in the portfolio or be sold to private investors.

SUPER Jumbo Loans?

Super jumbo loans (aka “monster loans”) are mortgage loans that cannot be obtained from your local bank due to their large dollar amount.  While there is no specific dollar figure that can be put on a monster loan, we will use $5M-$40M for the purpose of this website.

Is Getting A Super Jumbo Loan Difficult?

In our currently readjusting real estate climate, it is still possible to get a monster loan.  The difficulties that arise are usually related to income and/or equity position.  Most borrowers in the super jumbo loan category have their money invested in many umbrella companies, corporations, bank accounts, and assets.  It is sometimes painstaking work to prove income upwards of $300K per month, but the alternative is no loan at all.  Equity position (the loan to value ratio “LTV” for the mortgage loan) is also a factor in procuring a monster loan.  While conforming loans still offer as much as 97%-100% of the appraised value, super jumbo lenders will often require that the property have as much as 40% equity (60% LTV).

Do You Need To Have Liquid Assets?

Yes, lenders want to see that their borrowers have the ability to maintain a certain proportion of their assets in a form that is readily available.  While a lack of liquid assets does not mean that a borrower has financial difficulties, it does show a lack of preparation for emergency situations.