A non-conforming “jumbo” loan is a type of mortgage that exceeds loan limits set by the government-sponsored entities Fannie Mae and Freddie Mac. Jumbo loans carry a slightly higher risk than “conforming” loans and traditionally require a higher down payment and have stricter approval requirements. At Lincoln Home Loans, we offer competitive rates and flexible terms that we can tailor to meet any client’s needs. Jumbo mortgages are popular among clients in Nashville, Clarksville, Memphis, and many of the nearby Tennessee areas, where many luxury and higher-priced homes exist on the market. If the home you seek exceeds conforming loan limits, the professionals at Lincoln Home Loans can create a jumbo loan solution that works for your unique financial situation and goals.

A Nonconforming Loan Option for Luxury Homes

Jumbo loans are a type of conventional, non-conforming loan. They are conventional because they are fully owned and insured through private companies, whereas non-conventional loans are insured through government agencies like the FHA. Jumbo loans are non-conforming because they exceed the conforming loan limit set by Fannie Mae and Freddie Mac, which are government sponsored entities (not government agencies).

Jumbo loans have more rigorous eligibility requirements than conforming loans, although lenders make each approval decision on a case-by-case basis. Typically, you must provide a 20-30% down payment. You must also have a low debt-to-income ratio (typically around 40% or lower is preferred), and a good or better credit score (of at least 700 or higher).

You’ll need to provide paperwork documenting your financial stability and ability to make your mortgage payments and other homeowners’ expenses. You should also have bank statements showing that you have additional cash reserves in savings other than what you have saved for a down payment.

Local Conforming Loan Limits

In most counties across the United States, the limit for conforming loans is $726,200. In Davidson County, the conforming loan limits are:

  • $890,100 for a one-unit property
  • $1,139,500 for a two-unit property
  • $1,377,400 for a three-unit property
  • $1,711,750 for a four-unit property

What this means is that if the loan you are requesting exceeds the above limits, you will need to take advantage of a jumbo loan for your purchase. At Lincoln Home Loans, we offer both fixed and variable interest rate options, with terms up to 30 years. We can offer fast approval and help you secure the home of your dreams.

Get Started Today with a Jumbo Loan

When it comes to purchasing a luxury home, you need a mortgage partner who can customize a home financing solution that meets your individual needs while guiding you through the process. At Lincoln Home Loans, we hope to build long-term relationships with our clients, and we will go above and beyond to ensure you are satisfied with your jumbo loan solution. Our team of jumbo loan experts works closely with clients throughout Nashville, Clarksville, Memphis, and the surrounding Tennessee areas.