Jumbo
Loans
Jumbo Loans in Spokane
As of 2025, the maximum amount for a nonconforming loan is $806,500 in most counties. A jumbo loan can cover home prices that exceed the loan limit.
At Canopy Credit Union, we know that purchasing a higher-priced or luxury property is a big step in your financial journey. That’s why we offer competitive jumbo loan rates designed to help you achieve your dream of homeownership, even when the home price exceeds conventional loan limits.
Read on below to discover how it works, its eligibility requirements, and more.
What is a Jumbo Loan and how does it work?
A jumbo loan, sometimes called a jumbo mortgage, helps you finance a higher-priced or luxury property in markets where home prices rise above standard limits.
These mortgages exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Through a jumbo loan, you can access a larger loan amount when you’ve found the home that fits your life.
However, borrowers must fulfill more stringent underwriting requirements, such as having a high credit score and a low debt-to-income ratio. This is because jumbo loans are considered non-conforming loans. They are riskier for lenders as they can’t be purchased or guaranteed by Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). If the borrower defaults, the lender isn’t protected from its losses, so the loans generally remain on the lender’s own books as a type of portfolio loan.
Apply for a Jumbo Loan
If you require a loan exceeding the lending limits for conventional mortgages, we can offer you a jumbo loan. Jumbo loans work the same way as a traditional mortgage. You can choose a 30-year loan or opt for a shorter term. We can also offer you a fixed interest rate or an adjustable-rate mortgage (ARM).
Review and Requirements
Next, we review your application to confirm you meet our jumbo loan requirements. We review your income, credit history, cash reserves, property details, and the requested loan amount to match you with competitive jumbo loan mortgage rates. During this step, we’ll discuss available points and provide precise estimates of total costs and your expected monthly payment.
Approval, Rates, and Closing
Once approved, we’ll lock your jumbo loan rate based on current market rates and your profile, finalize your loan amount, and prepare for closing. You’ll move forward with confidence on a higher-priced or luxury property purchase, with a clear view of jumbo loan interest rates, terms, and your confirmed monthly payment.
Jumbo Loans in Spokane
Because jumbo loans involve larger loan amounts and higher risk for lenders, the qualifications are a bit stricter than those for standard conforming loans. Each lender sets its own eligibility requirements, and these have become more detailed since the 2008 financial crisis.
To be approved for a jumbo mortgage, you’ll want your financial picture to be in strong shape, ideally ranging from good to excellent. To do so, you must fulfill the following requirements:
- Appraisal
The higher the cost of the home real estate, the more the lender may want to be extra sure about its value before they approve you for the loan. A home appraisal ensures the property you wish to buy is actually worth the price the lender is letting you borrow.
- Cash Reserves
Having healthy cash reserves can strengthen your jumbo loan application. Aim to set aside enough to cover several months, ideally up to 12 months of mortgage payments. The amount must also cover principal, interest, taxes, and insurance.
- Credit Score
A strong credit score helps you access more competitive jumbo loan rates. Most lenders look for a score of 700 or higher, and some may set the bar closer to 740–760, depending on the overall file. If you’re not quite there yet, worry not. Our team can help you build a plan to grow your score before you apply.
- Debt-to-Income Ratio
Your DTI compares your monthly debts to your gross monthly income. Lower is better for a jumbo mortgage loan because it signals room in your budget for a larger monthly payment. While guidelines vary by lender and profile strength, many set a hard cap near 43% DTI.
- Proof of Income
As this loan is most suitable for individuals with annual incomes ranging from $250,000 to $500,000, proof of income is required. You must provide at least 30 days of recent pay stubs, 60 days of recent bank statements, and 2 years of annual tax returns and W-2 forms. The documentation requirements can be greater for the self-employed.
- Down Payment
A jumbo loan requires a significantly larger down payment than a conventional loan. Its down payments can range from 10-20% but you could be required to put down more.
compare Jumbo Loan mortgage rates
The exact jumbo loan mortgage rate you qualify for depends on a few factors: the loan amount you want to borrow, the size of your down payment, and your overall financial profile. In general, the stronger your credit history and reserves, the lower your interest rate will be.
Use this section to see how jumbo loan rates compare with traditional mortgages and get a clearer idea of what your monthly payment might look like.
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calculate your jumbo loan payment
Take the guesswork out of budgeting for a jumbo loan with our easy-to-use mortgage calculator. Just enter your loan amount, down payment, interest rate, and loan term. You’ll then get an estimate of your monthly mortgage payment, including principal and interest.
apply for a Jumbo Loans online
If your dream home’s loan amount is above your county’s conforming loan limits, a jumbo loan can help you get there. Jumbo loans are designed for higher-priced and luxury property purchases, giving you access to larger loan amounts with competitive jumbo loan rates.
At Canopy Credit Union, we make it simple and stress-free. Apply online in minutes, and our local team will guide you through jumbo loan requirements, discuss today’s interest rate options (fixed or ARM), and estimate your monthly payments. This way, you can move forward with confidence.
jumbo loan FAQs
Many borrowers qualify for a jumbo loan with as little as 10% down. However, a lender may require a down payment of 25% to 30%, depending on your credit, reserves, property type, and loan amount. We’ll help you explore options so your down payment, monthly payment, and cash reserves stay in a comfortable range.
The strongest drivers of a great jumbo mortgage rate are a very good to excellent credit profile. With a stable income, healthy reserves, and a manageable debt-to-income ratio, you increase your chance of being offered low interest rates. It also helps to compare offers from other lenders.
Closing costs for jumbo loans generally mirror conforming loans. Their closing costs typically range from 2% to 6% of the purchase price. Because jumbo loans finance higher-priced or luxury property, the same percentage can translate into a larger dollar amount.
You can refinance a jumbo loan much like you would a conforming mortgage. Refinancing can help you secure a lower interest rate, adjust your monthly payment, or even shorten your loan term. However, lenders have stricter jumbo loan requirements, which can make the refinancing process more complex.
The jumbo loan limit depends on where you live. In most parts of the U.S. for 2025, a mortgage becomes a jumbo loan if the loan amount exceeds $806,500. In higher-cost areas, such as the counties in the Northeast and West Coast, the threshold is higher, and only homes priced above $1,209,750 require a jumbo loan.
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The lending landscape changes frequently, but don’t worry, we keep our fingers on the pulse of the real estate market! Browse these helpful resources, written by our team of home loan experts, and stay up to date on the news that matters most to Spokane area home buyers.
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