Jumbo loans are characterized as any mortgage amount that exceeds the normal 2025 conforming loan limits of $806,500 for all of Nevada and most of the U.S. Jumbo financing options are made available to qualified borrowers in Reno who want to borrow amounts above the conventional loan limit.
If you reside in Nevada and are looking for a high-balance loan, having a strong credit and employment history is key. Meeting these requirements ensures a better chance of receiving the best rate and terms on your Jumbo mortgage.
There are subcategories available on Jumbo loans where buyers can make a down payment of 20%, 15%, 10% and even 5%. When you pay 10 percent of the total amount of the principal, it is called a 90 percent Jumbo mortgage; whereas when you pay 5 percent of the amount of principal as a down payment, it is referred to as a 95 percent Jumbo loan.
Things to remember before applying:
Credit rating is important, but it is not the only thing needed to acquire a Jumbo loan. Since the amount of the loan is greater, the risk to the lender or bank is also obviously higher. Most Jumbo lenders have strict policies for scrutiny of the borrowers who can qualify for Jumbo loans. Loan to value, credit history, and income are some of the crucial factors that determine the eligibility of the borrowers of Jumbo loans in Reno.
The interest rates on the Jumbo loans usually run a little higher when compared to regular conforming loans, again due to the higher incurred risk. However, with increasing property values across Washoe and Storey County, the popularity of Jumbo loans is also increasing. If you are planning to purchase a luxury property with a minimal down payment, there are a few options available in 2025.
The two most popular options remain the 10% down and 5% down payment programs. Each of these programs has exclusive requirements in regard to credit, occupancy, loan amount limits, etc. Buyers can read all the Jumbo purchase requirements here.
Loans can be structured in different ways depending on the qualifying profile of the borrower – single loan, combo “piggyback” loans, etc. Borrowers also have an assortment of term choices like standard 30-year fix, 15-year fix, and adjustable, variable interest rate terms. All programs do require full principal and interest payments as “interest-only” and negative amortization is not available.
Please note, homeowners that who already have a jumbo loan can read about rate terms and cash-out refinance programs here.
Contact us today to analyze all the options and select the best one based on your financial situation. We can be reached 7 days a week by calling the number above, or just submit the Quick Call Form on this page for immediate service.
Serving buyers nationwide including Reno, Lake Tahoe, Carson City & Sparks
