What Circumstances Might Disqualify Me From Getting a Jumbo Loan in Virginia?

Buying high-end properties in Virginia has its benefits. A better quality of life, investment potential, comfort, better amenities, prestige, privacy, and security are some of the top reasons borrowers choose luxury homes. 

If you need financing, a jumbo loan from The Mortgage Option can be your best option. However, it's crucial to understand that not everyone can qualify for jumbo loans. 

Jumbo loans are typically for borrowers seeking to purchase a high-value property that exceeds the loan limits set by Fannie Mae and Freddie Mac. However, certain unique circumstances might disqualify you from getting a jumbo loan. These can include:

  1. Poor credit history: Jumbo loans are high-risk loans. Lenders often require borrowers to have a strong credit history with a FICO score of at least 700. Individuals with bad credit histories may find it hard to qualify for a jumbo loan because of the increased risk. Mortgage lenders may also require you to make a larger down payment to offset the risk. It's essential for borrowers to maintain a good credit score and history, to get better terms and rates for this type of loan.
  2. High debt-to-income ratio: Lenders will assess your ability to repay the loan, and a high debt-to-income ratio may disqualify you from getting a jumbo loan. The debt-to-income ratio measures the percentage of a borrower's gross monthly income used to pay debts. It is an essential factor that determines your creditworthiness and borrowing risk. 

Generally, lenders prefer a debt-to-income ratio of 43% or less, but they may demand a lower DTI ratio for jumbo loans to mitigate the risk of default. Individuals with a higher DTI ratio may still qualify for a jumbo loan, but they'll have to meet additional requirements, like having a stellar credit score or having significant assets. Borrowers must assess their DTI ratio and take measures to lower it before applying for a loan.

  1. Unstable income: If your income is inconsistent or unstable, lenders may view you as a high-risk borrower and disqualify you from getting a jumbo loan. You must have a stable and consistent income history to qualify for a jumbo mortgage. If you have insistent income, you may have to showcase substantial savings or assets to guarantee timely mortgage payments during financial emergencies.
  2. Insufficient down payment: Jumbo loans often require a larger down payment than conventional mortgages. If you cannot provide a sufficient down payment, you may not qualify for a jumbo loan. Jumbo mortgages involve higher loan amounts, increasing lenders' risk. 

In general, jumbo loan borrowers in Virginia are expected to put down at least 20% of the property’s purchase price. However, depending on factors like a borrower's FICO score or income, jumbo loan lenders may require you to put more than 20% down. You may not qualify for a jumbo mortgage if you can't provide a sufficient down payment. 

Therefore, it's crucial to factor in the down payment requirements and plan accordingly before applying for a jumbo loan.


Getting a jumbo is not an easy feat, but it’s not impossible, either. By understanding the factors hindering your eligibility, you can take the necessary steps to boost your FICO score, reduce your debt-to-income ratio, and save for a larger down payment. Proper preparation makes it possible to purchase your dream home in Virginia.

It is important to note that every lender has their own set of requirements and criteria for jumbo loans. Borrowers should work with The Mortgage Option, the, to find the loan program that works best.

If you need help, our loan experts can guide you through the process and avoid pitfalls that could lead to disqualification. 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.

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