How jumbo loans can help home buyers and your builder business

May 18, 2022

Discover the lending option that enables a real estate agent or builder clients to afford luxury real estate, so you can keep closing homes.


While COVID-19 has caused certain financial challenges, U.S. Bank is equipped to help people move forward with their financial goals. This is especially true for home buyers currently searching for higher-valued homes that fit their lives and budget. U.S. Bank jumbo loans are helpful options available for these buyers, by lending 10 percent down up to $900,000 to $1.25 million, depending on the program. This type of loan can make a big difference for some clients while also enabling real estate agents and builders to sell more homes.

For U.S. Bank client, Michele Joy, Vice President of Sales and Marketing at a home building company, jumbo loans have allowed buyers to continue purchasing homes during COVID-19, and helped businesses thrive. Read on for her story, plus more information on how the loan process works.


How jumbo loans help real estate agents and builders

While typical conforming loans have a limit of $647,200 in much of the US, jumbo loans have a higher limit that make it possible for some home buyers to afford luxury homes that otherwise might not be in their price range. Over the last several months, Michele has seen how this option has helped her home building company retain even more buyers.

Having the ability to suggest a jumbo loan product to qualifying buyers has made all the difference for our home building company and buyers in many of our communities with price points averaging $1 million dollars, says Michele. “The consistent offering of the jumbo loan product by U.S. Bank allowed us to continue selling and closing homes without missing a beat,” she adds.

In fact, when building was temporarily shut down in April and May of 2020 and construction had stopped, “we were still closing homes, in part because of the jumbo loan option for buyers. We did not miss a closing during the height of the pandemic,” says Michele.


How jumbo loans help buyers

While jumbo loans are good for businesses, they can also make a positive impact on buyers. Our sales team shared their knowledge of the program with buyers as an appealing financing solution, with fewer restrictions than some alternative banks, increasing the number of buyers who could participate. This ultimately led to an increase in sales.

For example, our building company recently had a home buyer at their Boulevard community in Dublin, Calif., who had just started new employment working for a large company with a signing bonus. This buyer had no history of bonus or Restricted Stock Unit (RSU) type of income, so the standard requirements to consider the bonus and RSU income had not been met. This meant they didn’t qualify using only base income, explains Michele. “Utilizing the jumbo loan program offered by U.S. Bank and the flexibility of portfolio lending, the buyers were qualified with a 10 percent down payment. This particular home buyer’s situation would not have been acceptable on any agency or any non-jumbo product,” she says.


Navigating the virtual landscape

While jumbo loans help realtors and builders make sales, COVID-19 has presented its own set of challenges for these businesses. In response to the stay-at-home guidelines and social distancing recommendations, Michele’s team changed their way of operating to keep business going strong.

“We did a major shift with our team to embrace virtual,” she says. “We have been working on ways to make the home shopping experience as simple and seamless for the buyer as possible.” This included setting up technology called MyTime that enables home buyers to visit and tour by themselves, and doing virtual appointments to walk buyers through homes being built for them.

“Working to ensure that we could interact with the customer virtually, by phone or safely in person was important to ensure we could continue to serve our buyers during these challenging times,” says Michele. In addition to jumbo loans, making these types of adjustments and accommodations in response to COVID-19 is a critical part of continuing business operations.

In addition, the U.S. Bank online application process has allowed buyers to handle most of the loan process remotely, which Michele says has eased the process for her buyers – especially in the context of COVID-19.


Jumbo loan qualification and approval process

To be eligible for a jumbo loan, home buyers must have a high credit score. Typically, this means their FICO score is at least 740. Income requirements must be met, and financial information must meet a certain set of standards as well. In addition, the buyer’s debt-to-income ratio needs to be less than 45 percent. Finally, the property appraisal is required to support the home’s purchase price and the mortgage requested by the buyer. A mortgage loan officer can also help buyers figure out whether a traditional loan or a jumbo loan would serve them best in their situation and discuss mortgage rates.


Learn more about jumbo loans offered through U.S. Bank.

Related content

Employee benefit plan management: Trustee vs. custodian

Choosing your M&A escrow partner

Solutions banks can offer during the COVID-19 pandemic

Improve government payments with electronic billing platforms

Emerging A/R solutions use artificial intelligence to target efficiency

High-yield bond issuance: 5 traits lawyers should look for in a service provider

Addressing financial uncertainty in international business

10 ways a global custodian can support your growth

Insource or outsource? 10 considerations

ABCs of APIs: Drive treasury efficiency with real-time connectivity

Hospitals face cybersecurity risks in surprising new ways

Give a prepaid rewards card for employee recognition

How to reward employees and teams who perform well

5 steps for creating an employee recognition program

How jumbo loans can help home buyers and your builder business

Payment industry trends shaping that are the future of POS

Real-time payments: the next major treasury disruptor

Higher education strategies for e-payment migration, fighting fraud

4 ways to make practical use of real-time payments

For today's relocating home buyers, time and money are everything

Crypto + Relo: Mobility industry impacts

Evaluating interest rate risk creating risk management strategy

Webinar: Mindset Matters: How to practice mindful spending

Benefits of billing foreign customers in their own currency

Middle-market direct lending: Obstacles and opportunities

How real-time inventory visibility can boost retail margins

4 benefits of independent loan agents

Everything you need to know about consolidating debts

4 benefits to paying foreign suppliers in their own currency

High-cost housing and down payment options in relocation

Escheatment resources: Reporting deadlines for all 50 states

Administrator accountability: 5 questions to evaluate outsourcing risks

When small companies buy big: The potential of asset-based lending

Easier onboarding: What to look for in an administrator

In a digital world, Liberty Puzzles embraces true connection

3 tips to maintain flexibility in supply chain management

How to maximise your infrastructure finance project

Complying with changes in fund regulations

Colleges respond to student needs by offering digital payments

Want AP automation to pay both businesses and consumers?

Automate accounts payable to optimize revenue and payments

Artificial intelligence in finance: Defining the terms

Adjust collections to limit impact of USPS delivery changes

Take the stress out of buying your teen a car

How I did it: Deciding whether to buy an RV

Questions to ask before buying a car

What you should know about buying a car

How to choose the best car loan for you

What you need to know before buying a new or used car

How electronic billing platforms improve government payments

4 restaurant models that aren’t dine-in

Can you take advantage of the dead equity in your home?

How to get started creating your business plan

How to test new business ideas

How to fund your business without using 401(k) savings

The different types of startup financing

Opening a business on a budget during COVID-19

Costs to consider when starting a business

How to establish your business credit score

How to redefine challenges with business collaboration

Empowering team members

10 tips on how to run a successful family business

The role of ethics in the hiring process

8 ways to increase employee engagement

How to hire employees: Employee referral vs. external hiring

How business owners are managing during the supply chain crisis

Gift cards can extend ROI into 2022

What you should know about licensing agreements

3 simple brand awareness tips for your business

How a small business owner is making the workplace work for women

The growing importance of a strong corporate culture

Rethinking common time management tips

Meet your business credit card support team

Business credit card 101

5 tips for managing your business cash flow

How Everyday Funding can improve cash flow

When to consider switching banks for your business

How to apply for a business credit card

How a small business is moving forward during COVID-19

Prioritizing payroll during the COVID-19 pandemic

5 tips to help you land a small business loan

Leverage credit wisely to plug business cash flow gaps

8 Ways for small business owners to manage their cash flow

How to make the most of your business loan

How to accept credit cards online

Break free from cash flow management constraints

Improve online presence your business

Use this one simple email marketing tip to increase your reach

How a travel clothing retailer is staying true to its brand values

How community gave life to lifestyle boutique Les Sol

How Shampoo’ed is transforming hair and inspiring entrepreneurs

The San Francisco bridal shop that’s been making memories for 30 years

How Al’s Breakfast is bringing people together

Celebrity Cake Studio’s two decades of growth and success

How a group fitness studio made the most of online workouts

How Wenonah Canoe is making a boom in business last

How a bar trivia company went digital during COVID-19

How to build a content team

Investing in capital expenditures: What to discuss with key partners

How (and why) to get your business supplier diversity certification

Drivers for changing accounts receivable in 2021

Digitizing receivables to transform B2B rent payments

Can ABL options fuel your business — and keep it running?

Collateral options for ABL: What’s eligible, what’s not?

Beyond Mars, AeroVironment’s earthly expansion fueled by U.S. Bank

4 questions you should ask about your custodian

Tactical Treasury: Fraud prevention is a never-ending task

4 ways Request for Payments (RfP) changes consumer bill pay

Increase working capital with Commercial Card Optimization

How AR technology is helping advance payment processing at Avera Health

Digital trends poised to reshape hotel payments

ePOS cash register training tips and tricks

Three healthcare payment trends that will continue to matter in 2022

Managing the rising costs of payment acceptance with service fees

Safeguarding the payment experience through contactless

3 ways to adapt to the new payments landscape

Automate escheatment for accounts payable to save time and money

The benefits of payment digitization: Pushing for simplicity

Cashless business pros and cons: Should you make the switch?

Understanding and preparing for the new payment experience

White Castle optimizes payment transactions

How this photography business persevered through tough times

Collect utility and telecom bill payments faster

3 reasons governments and educational institutions should implement service fees

Tech lifecycle refresh: A tale of two philosophies

What corporate treasurers need to know about Virtual Account Management

At your service: Outsourcing loan agency work

Webinar: Reviving mobility, what to expect

Tailor Ridge eBill case study

Webinar: Navigating today’s work-from-anywhere world

Webinar: DEI tips for transforming your mobility program

ABCs of ARP: Answers to American Rescue Plan questions for counties

Overcoming the 3 key challenges of a lump sum relocation program

Why retail merchandise returns will be a differentiator in 2022

Technology strategies to complement your business plan

Omnichannel retail: 4 best practices for navigating the new normal

Maximizing your infrastructure finance project with a full suite trustee and agent

The client-focused mindset: How to network effectively

Is your restaurant Google-friendly?

4 tips for protecting your business against Coronavirus-related scams

5 Ways to protect your government agency from payment fraud

Government agency credit card programs and PCI compliance

Business risk management for owners of small companies

Buried treasure: Maximizing analytics for treasury management

What is a CLO?

An investor’s guide to marketplace lending

Refining your search for an insurance custodian

Preparing for your custodian conversion

Business tips and advice for Black entrepreneurs

What type of loan is right for your business?

ABL mythbusters: The truth about asset-based lending

3 benefits of integrated payments in healthcare

Unexpected cost savings may be hiding in your payment strategy

Webinar: AP automation for commercial real estate

Webinar: CSM corporation re-thinks AP

Top tips for card payments optimization

The future of financial leadership: More strategy, fewer spreadsheets

A simple guide to set up your online ordering restaurant

COVID-19 safety recommendations: Are you ready to reopen?

How to improve digital payments security for your health system

Higher education and the cashless society: Latest trends

Government billing survey: The digital transformation of the payment experience

Enhancing liquidity management: 4 benefits of visibility

Top 3 ways digital payments can transform the patient experience

Webinar: Fraud prevention and mitigation for government agencies

The client-focused mindset: Adapting to differing personality types

Digital receivables to meet changing demand

The client-focused mindset: What do clients expect?

Automated escheatment – learn how to prevent and resolve unclaimed property

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Webinar: CRE technology trends

Webinar: AP automation—solve payment challenges with an invoice-to-pay solution

Webinar: Robotic process automation

Webinar: CRE treasury leader roundtable

U.S. Bank is not affiliated with the organizations mentioned in this publication unless otherwise notated. U.S. Bank is not affiliated with any real estate agent or builder. Opinions of home-building company representatives are their own and not those of U.S. Bank.

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.