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Torres & Co. Lending > Jumbo Loan Solutions > Fixed Rate Jumbo

Fixed Rate Jumbo

What Is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans are too large to be purchased by Fannie Mae or Freddie Mac, they are considered non-conforming and typically have stricter qualification requirements. Jumbo loans are designed for financing luxury homes or properties in high-cost areas.

What Is the Standard 97% LTV Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans are too large to be purchased by Fannie Mae or Freddie Mac, they are considered non-conforming and typically have stricter qualification requirements. Jumbo loans are designed for financing luxury homes or properties in high-cost areas.

How It Works

  • Borrowers apply through a lender or mortgage broker.
  • Loan amounts must be higher than the conforming limit ($766,550 in most U.S. counties for 2024, higher in designated high-cost areas). | https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx 
  • Since they are not backed by Fannie Mae or Freddie Mac, jumbo loans are held by lenders or investors who set their own requirements.
  • Approval focuses heavily on credit history, income stability, and available assets.

Benefits of the Standard 97% LTV Loan

  • Just 3% down payment required.
  • Conventional financing with cancellable PMI.
  • Lower long-term costs compared to FHA loans.
  • Straightforward guidelines without geographic or income restrictions (unlike HomeReady or Home Possible).
  • Available nationwide.

Fun Facts & Insider Details

  • First-Time Buyer Requirement: At least one borrower must meet the definition of a first-time buyer.
  • No UFMIP: Unlike FHA, there’s no upfront mortgage insurance premium.
  • MI Cancellation: PMI can be removed once 20% equity is reached — saving thousands over time.
  • Education Requirement: A homeownership education course may be required for first-time buyers.

Who Is the Best Candidate for HomeReady?

  • First-time buyers with limited savings who don’t qualify for HomeReady or Home Possible.
  • Borrowers who prefer a Conventional loan over FHA to avoid permanent mortgage insurance.
  • Buyers who plan to stay in their home long enough to reach 20% equity and cancel PMI.

FAQs – Standard 97% LTV Loan

  • No. While they also allow 3% down, HomeReady and Home Possible have income and area restrictions. The Standard 97% loan is broader but requires at least one borrower to be a first-time buyer.

  • No. This program is limited to 1-unit primary residences.

  • Possibly. If all borrowers are first-time buyers, at least one will need to complete an approved education course.

  • No. PMI can be removed once you reach 20% equity.

Next Step

Interested in the Standard 97% LTV Loan? Let’s confirm eligibility and walk you through the details.

Apply Now

⚖️ Disclaimer: This guide is for educational purposes only. Loan approval and terms depend on credit, income, assets, property type, and program guidelines.

Torres & Co. LendingFixed Rate Jumbo