A Little Background on Jumbo Loans
For many, buying a house can be an exciting opportunity, especially if you’re looking to find a larger home, a luxury vacation home, or a dream home. Often when scaling up for size, or finding the perfect property in a hot location, the cost of the home is higher. For those who are eligible, acquiring a jumbo mortgage can be a smart lending solution.
What is a Jumbo Mortgage?
A mortgage is referred to as “jumbo” when the amount is higher than the conforming loan limit. Conforming loan limits are tied to home prices and are updated annually by the Federal Housing Finance Authority (FHFA). In 2025, a jumbo mortgage starts at $806,501 for properties located in Indiana. Jumbo mortgages are available for primary residences as well as second homes, and terms vary depending on the needs of the buyer. A jumbo mortgage may have stricter credit requirements, and the terms and interest rates often vary by lender and region of the country.
What Do Borrowers Need to Qualify?
Borrowers generally need a good credit score, reserves covering 6 months of mortgage payments, a lower debt-to-income ratio, and the ability to front a larger down payment.
Is a Jumbo Loan Right for You?
Review your financial position and develop a budget that serves your long-term goals. Compare your monthly income, expenses, and savings to find a comfortable payment range and loan amount. Like all major financial decisions, the right solution is as unique as the individual it serves.
Receive Superior Mortgage Service
The mortgage specialists at The National Bank of Indianapolis can help you find the best solution that meets your needs. Our experts specialize in a variety of home lending options, including jumbo mortgages. To connect with a member of our team visit https://www.nbofi.com/mortgage-specialists.