Does a jumbo project need a jumbo loan?

Published on

Maybe. Just like there’s a tool for every job, there’s a loan for just about every project and size. If you’re about to embark on a jumbo-sized project and need financing, you may need jumbo-sized loan to get the job done.  

What is a Jumbo Mortgage?

A jumbo loan is a mortgage for people who need to borrow over $510,400, and can go as high as $5,000,000 (at Webster). In the mortgage world, we call this a non-conforming loan. A conforming loan is a loan $510,399 or less. Government agencies set these limits, and they vary by area.

What Can A Jumbo Loan Be Used For?

  • Purchasing
  • Refinancing 
  • Construction financing
  • Second homes
  • Investment properties with up to four units

Due to the increased financial risk, most lenders charge slightly higher interest rates on jumbo mortgages as compared to traditional mortgages.  

Why Webster for a Jumbo Loan?

Here are a few things that make Webster a great bank for your jumbo financing needs:

  1. Local Underwriting and Processing - as we are a regional bank
  2. Competitive rates and Flexible Financing   
  3. Less Required up Front - Most lenders require a 20% minimum down payment. However, at Webster, we offer jumbo loans for a 10% minimum down payment, depending on the size of your loan.
  4. No Pre-Payment Penalties - Another thing that makes our jumbo loans attractive is that there are no pre-payment penalties
  5. We Finance Investment Properties - Not many lenders offer jumbos loans on investment properties. But at Webster, we can help finance investment properties.


Related Article: Financing Home Improvement and Construction Projects

You may also like


A retirement countdown checklist: 5 steps to consider before retirement

Whether you're hoping to retire soon or are just beginning to explore the idea of stepping back from your job, you're probably wondering how to make it happen. Will you have enough money? How will you spend your time? What will you do for health…


Identity theft and your taxes

Identity theft is one of the fastest-growing crimes in the United States. According to Consumer Affairs, in a 2022 study, each year, seven to ten percent of the U.S. population are victims of identity fraud, and 21 percent of those are repeat victims…


Worried about your financial health? It may be time for a checkup

When was the last time you gave yourself a financial checkup? As the saying goes, there’s no time like the present. This is especially true when it comes to reviewing the current state of your finances and figuring out what you need to do to get – or…

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.

Credit Disclosures

All loans and lines of credit are subject to credit approval.