Prime Jumbo Loans Explained – Live Rates for High-Credit Borrowers

Think jumbo loans always mean higher rates? Think again.
Join our livestream as we break down prime jumbo loans and show how high-credit borrowers can secure excellent pricing—sometimes better than conforming or high-balance loans.

We’ll cover who qualifies, credit ranges, down payment expectations, bank vs. correspondent jumbo lending, and live rate comparisons.

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The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Today, we'll be talking about our prime jumbo loans. So this is typically the best tool when our customer qualifies for conventional. The loan amount, out of reach for a little bit of a higher-priced property. So that's the specific example. I do have just one simple example, so we'll go through it, very quickly, but I'll talk about in general what the different options are once we get into that program.

So let me go ahead and switch screens, and we'll check out some live rates for today. So first up, we always wanna consider the markets in general. So the best thing to look at here in general is the ten-year treasury. It's gonna track rates overall, especially when we're talking about rates for different programs and loan types. Definitely good to track the market overall.

You see a lot of up and down throughout the week, especially how we have different news. This morning, it looks like a little bit up, but we always wanna pull it out from a larger sample size here to see that we're still pretty much at one one-year low. So definitely still a great opportunity. When you weed out the news, still a great time to be out there shopping in general. But let's check out what we have today for our actual live rates.

So for our standard programs here, we set up a basic scenario that we can compare all our different programs. Again, we use a standard single-family home, 500,000 purchase, 300,000 loan amount. It corresponds to 60% loan to value, seven sixty FICO, and 40% debt to income ratio. That way, we can compare across all the special programs we have. It's a little bit low for some of these initial programs, but that's what we'll talk about in our exam.

So for our conventional conforming options here, the most common option people think of when they think of a mortgage, rates today come in as low as 5.875. Finally, PR comes in at 6.135. That's not much changed since last week, really. FHA, definitely, if our customer doesn't qualify for conventional or performing, we wanna check out FHA. Allows a little higher debt-to-income ratio and a little more leniency on credit issues, but does require upfront and yearly mortgage insurance.

So that comes in at 5.25, but the final APR is 6.143. So always look at the APR so you can compare the full cost because that includes all of the fees and mortgage insurance. And for eligible vets, active members and surviving spouses, VA is a great option. Rates today come in as low as 5.375, but much lower fees than FHA when you're comparing there. So finally, 5.639, is definitely typically the best option for any of our eligible VA borrowers.

And we have USDA options coming in today. Five one two five rate. Finally, there are 5.826. And definitely our customers that are looking in those USDA eligible areas, typically the rural areas of the country, and they have income that qualifies and typically be comparing to an FHA or a conventional option. And it looks like USDA is quite a bit cheaper today, which is a great option.

And once we start going outside the box, this is, similar to what we're gonna be talking about today. But our favourite options here at the merchant calculator is to provide our outside-the-box solutions. Set up our non-QM alt doc options for a primary home. So for our borrowers that don't qualify, conventional FHA, etcetera, typically our self-employed borrowers maybe need to use alternative docs such as bank statements, ten ninety nines, p and l statements, to prove their income. We can do that here, and rates are pretty similar to conventional 5.875.

Finally, there are 6.145. So a little bit higher on the fees there to go with our non-QM options. And we can use our non QM opt options for investment properties, with rates as low as 6%. Finally, PR comes in 6.1. And we compare that to our conventional options for an investment already, Same rate, 6%.

Finally, PR is 6.311. And we always cover our favourite loans here or some of my favorite loans at least at the mortgage calculator, our DSCR debt service coverage ratio. No info or employment information needed. We simply use the estimated rents from the rental to determine a DSCR ratio. And if the rents can cover the expenses, in this case, that's a ratio over one, which is what we use for our examples.

And our first example has a three-year prepayment fee, which is pretty standard. Rates today for DSCR are coming at 5.999, a little better than conventional. And finally, PR with all the fees, 6.234. So, definitely beating conventional a little bit, which is pretty amazing. And we can add a five-year prepayment penalty to sweeten the deal.

It does lower the rates of touch here today, which is great. 5.875 rate. Finally, PR comes in 6.193, which is, again, cheaper than conventional. And I'll talk when we add that prepayment penalty. And we have different options here.

If you keep scrolling down, we have all kinds of different outside-the-box solutions for our investors and our borrowers out there that need a little help. But today, we're going to be talking about prime jumbo loans. So typically, a prime jumbo is gonna be our best option if our customer, again, qualifies for a standard conventional loan. But the property is a higher price or in this case, the loan amount is over the limit. So I have an example property here.

We used this before. Definitely just outside the limit. So a good example, just a standard small home here in the area. Very nice little home. But it is outside the limit when you need to get a purchase price of 1,175,000.000.

We cannot, unfortunately, use a conventional loan to reach the standard 5% down amount that we were requesting when they request a conventional option. So our first example here is when we do have to quote, unfortunately, a max conforming loan. This year, for 2026, the maximum is gonna be $8.32, $7.50, roughly for 2026. And so what we set this loan up as is 30 down payment, 70% loan to value because that gets us just a hair under, the, max loan amount here of $8.22 500 and still gets us some great rates because we are putting more down payments. So that's one of the benefits here.

But, unfortunately, to add a max conforming loan, just under the max amount, we're gonna have to put about 30% down. So many of our borrowers here, obviously, would love the rate, 5.75 lowest rate, 2.25 discount points in cost, and our rate in this example, 6.375. So obviously, our customer typically love to offer, to have this option, but with lower down payment is a typical request. So there's a couple tools that we can use to get there. That's our topic for today, and that's going to be, oh, first off, let me show the scenario here.

We got a seven sixty credit score on this table. And again, we set this up as our conforming primary home. So if we use these same settings, same FICO score, same everything, and to present our borrower with an option for lower down payment using traditional underwriting methods, the nice option here that we haven't gone over in a while is our prime jumbo. So the max LTV on the prime jumbo options are gonna be 89.99, roughly 10% down payment, which is a little higher than the standard conventional, but it is almost identical. So they call it a prime jumbo because we're going to use the same great automated underwriting system that we use for our conventional loans, and it's going to make it a lot quicker and easier to qualify because it's gonna be the same as a conventional loan.

The only difference is the loan amount is going to be higher than limit. So in this case, obviously, the rates are higher. There is no PMI in this example because this is technically a non QM loan still. So the, rate here, 6.75, cost 2.375 discount points in cost. And, the lowest cost option, 7.5 rate for point five discount points in cost.

The benefit here is we're able to put, right at 10% down roughly, and we're able to exceed what would be the conforming limit and do an otherwise standard loan here at that 89.99 LTV. So this is the typical setup, for our borrowers that are looking, to just get past the loan amount issue. And, again, we have a lot of tools to get our borrowers, there as well with alternative docs. But in this case, this is a standard conventional loan. As far as underwriting goes, it's gonna use our automated underwriting systems.

And the only thing that's going to be, not standard is the actual loan amount. So let me pull up my graphic here. Let me just go over a couple, final points here too. So we can I didn't pull up the examples, but we can do, I just wanted to, point this out? We can even do a two unit primary home.

The limit there is gonna be 84.99 LTV for these, typical programs. And we can do cash out up to 80 LTV for a one unit, 70 LTV for a two unit. So that's pretty cool. And we can use these programs for second and investment properties, second homes, max LTV, for these prime general options, going to be, 80% loan to value and, cash out for second homes loan to value. And for investment properties, the max purchase, 80% loan to value, max cash out, 70% loan to value.

So these are pretty cool options. Borrower is used to a standard conventional loan, and, unfortunately, I was just not quite able to get there with the loan amount limitations, but, otherwise, is interested in what would be a standard loan. So if you have any questions on any of the programs we went over, like, a full itemized loan estimate with a full breakdown, please give it one of our team members. They'd be happy to help you out. And we'll see everybody later this week for another episode of Daily Grace Live.

Thanks, everybody.