Understanding Jumbo Loans in the Scottsdale Luxury Market
Published on November 10, 2025
The real estate markets in Scottsdale and Paradise Valley are known for their luxury properties. When a home loan amount exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, it's classified as a 'jumbo loan.' Understanding how these loans work is essential for high-end buyers.
What Qualifies as a Jumbo Loan?
Conforming loan limits vary by county and are updated annually. In Maricopa County, any loan amount above this limit is considered a jumbo loan. These loans cannot be purchased by Fannie Mae or Freddie Mac, so they represent a different type of risk for lenders.
How to Qualify for a Jumbo Loan
Because jumbo loans are for larger amounts, the qualification criteria are typically more stringent than for a conforming loan. Lenders will generally look for:
- Higher Credit Scores: A credit score of 700 or higher is often required.
- Lower Debt-to-Income (DTI) Ratios: Lenders want to see that you can comfortably manage the larger monthly payment.
- Larger Down Payments: While 10% down options exist, a down payment of 20% or more is common.
- Significant Assets: Lenders will verify that you have cash reserves (or 'post-closing liquidity') to cover several months of mortgage payments.
Navigating the Jumbo Loan Process
Securing a jumbo loan requires a lender with experience in the luxury market. We specialize in structuring jumbo financing that meets the unique needs of our clients in Scottsdale and Paradise Valley, ensuring a smooth and sophisticated borrowing experience.