Can A First-Time Buyer Get A Jumbo Loan?

Can a first-time buyer can get a jumbo loan? Yes, however, lenders often scrutinize this type of transaction with more requirements to qualify than they have for a move-up buyer. 

One concern they have with a first-time buyer is payment shock. Payment shock is defined as the amount exceeding the current housing expense. For example, the lender may have a guideline stating that they will fund a jumbo loan for a first-time buyer only if the payment shock is less than 200% of the current rent. 

A lender will want to verify the rental payment history of a first-time buyer. Be prepared to provide at least 12 months of cancelled checks (some lenders ask for 24 months). Hopefully all of the rental payments have been made on time. 

What if you live at home with your parents? You might be out of luck! The lack of a rental history can be the cause of a turn-down for a jumbo loan application.


Courtesy of GWhalin


Your credit score as a first-time buyer is extremely important when you apply for a jumbo loan. Be prepared to have a score of 720 or more! 

You have met of all the above requirements - is there anything else you need to be concerned with as a first-time buyer? Yes. There may be a loan amount limit. For example, you may be limited to a $1 million jumbo loan amount. 

It is important that you know that first-time buyer guidelines for a jumbo loan vary from lender to lender. For example, a lender may not have a guideline concerning payment shock, but may have a maximum loan limit for a first-time buyer.  

With this knowledge of what lenders are concerned with, you can protect yourself by volunteering this information when applying. Ask your lender what there requirements are for a first-time buyer. In addition ask your real estate agent for a referral to a jumbo lender that has lots of experience closing jumbo loans.

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Do you need help with or a question about a mortgage? Call or text me at (650) 222-0386, or e-mail me.


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 Guarantee Mortgage is a division of American Pacific Mortgage Corp. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, and the California Bureau of Real Estate. American Pacific Mortgage Corporation NMLS #1850, CAL-BRE #01215943. Single Family, Multi-Family and Commercial Loans. Equal Housing Opportunity. Equal Housing Lender.

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Phil Caulfield
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Burlingame, CA 94010

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Comment balloon 2 commentsPhil Caulfield • February 28 2012 05:48PM
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