Myth: Jumbo Loans Are Only for the Wealthy

Fact: While jumbo loans are often used to finance high-value homes and luxury properties, they are not limited to millionaires. Jumbo mortgages are available to a wide range of borrowers across different income levels who need to finance loan amounts above conforming limits.

Myth: Jumbo Mortgages Are Too Difficult to Qualify For

Fact: It’s true that jumbo loan requirements are stricter than conventional mortgages, with lenders reviewing credit score, income stability, debt-to-income ratio, and assets more closely. However, many qualified borrowers with good credit and a solid financial profile can still secure jumbo financing.

Myth: Jumbo Loans Always Have Higher Interest Rates

Fact: Today’s jumbo mortgage rates are often very competitive. In some cases, jumbo loan interest rates may even be lower than conventional mortgage rates, giving borrowers affordable options for large loan amounts.

Myth: Jumbo Loans Require Extremely Large Down Payments

Fact: While jumbo loans traditionally called for a 20% down payment, many lenders now offer jumbo financing with as little as 10% down. This makes jumbo loan programs more accessible to qualified borrowers.

Myth: Jumbo Loans Can Only Be Used for Primary Residences

Fact: A jumbo mortgage can be used to finance a variety of property types — not just primary residences. Borrowers can use jumbo loans for second homes, vacation homes, or investment properties, giving flexibility in real estate financing.