How much higher on average are jumbo loans than normal non conforming conventional loans?

If there's one thing I have learned in mortgage lending, is that there is no such thing as "on average".. Jumbo financing is a portfolio loan product, meaning that each individual bank has their own set of rules and guidelines, where on the conventional side, most lenders have very few overlays above and beyond Fannie/Freddie guidelines. That being said, each lender who does jumbo financing can have completely different rules and they can be as strict as they see fit, and no two jumbo lenders are alike, but in general, yes, the qualifications would be much more strict.. higher down payment requirements, higher interest rates, higher fees, usually 2 appraisals, 9 months to 12 months reserves, etc.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Steve, There are 3 basic pricing tiers and the rate differential between the three tiers can change on a daily basis. Conforming (less than or equal to ($417,000), Agency High Balance (up to $625,500 in some counties) and Jumbo. Generally, the spread between Conforming and Jumbo is approximately one-half percent (0.50%) in interest rate. The difference between Agency High Balance and Jumbo loans is approximately .375% in interest rate. Further, High Balance and Jumbo loans generally have more restrictive underwriting guidelines, particularly with minimum required FICO Scores and Loan to Value restrictions. If I can be of any further assistance please feel free to contact me.Steve Patton, Sav-More Financial (949) 734-7307 steve.patton@sav-more.com

Tighter guidelines, 0.5% to 1.0% higher on interest rate.

Jumbo loans are designated by the max loan amount in any given area- the rate tends to be higher and the debt to income is usually lower than a standard conforming loan. Check with your local community bank- they may have a portfolioloan that fits your needs -

I'd expect to pay at least 1/2% more in rate and have more restrictive guidelines.

In addition to what others are saying, it also depends on the specific lender you are using, the type of property and other aspects of your qualifications and loan scenario - plus the term of the loan.

There are several different options you have in terms of loan amounts. The first is conforming loan balances up to $417,000. The second is jumbo loan balances ranging from $417,001 to $625,500. Then there are super jumbo balances above $625,500. The loan limits will also vary from county to county, so if you are planning on buying in a particularly high cost area the conforming loan limits might be higher. In order to get a jumbo or a super jumbo loan, you must meet higher credit score requirements, income requirements, etc. The interest rate on a jumbo loan will be higher than on a conforming loan, however currently jumbo rates are nearly aligned with conforming - something that hasn't happened in years! We are located in San Diego, licensed throughout the entire state of California and have highly competitive jumbo rates. Feel free to give us a call at 858-605-0952 to explore your options and determine which loan will make the most sense for you.