Shopping for a home in Bellevue, Clyde Hill, Medina, or Hunts Point and wondering if your mortgage will be considered “jumbo”? You are not alone. Many Eastside homes price above typical conforming limits, so understanding jumbo financing can help you move faster and negotiate with confidence. In this guide, you will learn what counts as a jumbo in King County, how rates compare to conforming loans, what lenders expect, and how to structure a strong file for $1.5M+ purchases. Let’s dive in.
What counts as a jumbo in King County
A mortgage is considered a jumbo when the loan amount is above the conforming loan limit set annually by the Federal Housing Finance Agency for each county. Loans at or below that limit are conforming and eligible for Fannie Mae or Freddie Mac. Amounts above it are non-conforming, often called jumbos.
King County is commonly treated as a higher-cost area, so its conforming limit is often above the national baseline. Because that number changes yearly, you should check the current FHFA county limit for the year you plan to buy. If the loan you need after your down payment is above the FHFA conforming limit for King County, it is a jumbo.
Common jumbo loan types on the Eastside
Jumbo financing is not one-size-fits-all. You will see several options designed for high-value properties and complex financial profiles.
Conventional jumbo
These are conventional loans above the conforming cap. They follow many standard underwriting practices and are either sold to private investors or kept by lenders. They can be a fit for buyers with strong credit, clear income, and at least 20 percent down.
Portfolio loans
Portfolio lenders keep the loan on their books and use internal underwriting. This route can fit borrowers with unique asset structures, equity compensation, or other complexities that do not fit standard guidelines.
Asset-based or asset-depletion loans
If you have significant liquid assets but lower documented income, some lenders allow you to qualify by converting those assets into an equivalent income stream. This can be helpful for buyers with sizeable investment or retirement accounts.
Bank-statement programs
Select lenders will qualify self-employed buyers using bank statements, often over 24 months, instead of tax returns. Pricing and terms can differ from full-documentation loans, so weigh the trade-offs.
Securities-backed lines or margin loans
Some buyers use securities as collateral for a line of credit to bridge or replace a mortgage. This is not a traditional mortgage and carries market risk if asset values fall, but it can speed up closing or avoid selling positions.
Government-backed options
FHA limits typically fall below Eastside luxury prices. VA loans do not impose a hard cap in statute, but the VA guarantee interacts with county limits. For purchases above the county limit, VA borrowers often need a down payment on the portion that exceeds the limit. Work with a VA-experienced lender to confirm specifics for King County.
What lenders expect: docs, reserves, credit
Jumbo underwriting is more detailed than many conforming loans. Preparing documents early will prevent delays and help you compete in multiple-offer scenarios.
Income documentation
- W-2 or salaried: recent pay stubs, last two years of W-2s, and employer verification.
- Self-employed or complex income: two years of personal and business tax returns, profit and loss statements, and any K-1s or 1099s. Alternative routes include bank-statement or asset-depletion programs.
Early preapproval with the lender you plan to use can surface any overlays or program rules before you write an offer.
Assets and seasoning
Expect to provide recent statements for bank and investment accounts. Lenders often look for 60 to 120 days of seasoning on large deposits. Unexplained transfers usually require documentation that shows the source, such as sale proceeds or eligible gifts.
Reserves
Reserves are verified funds that remain after closing to cover future mortgage payments. Lenders measure reserves in months of PITIA: principal, interest, taxes, insurance, and any HOA dues. Many jumbo programs require 6 to 12 months of reserves as a baseline. For loans above $1 million or with more complex profiles, requirements often increase to 12 to 24 months. Reserves can be counted against all mortgages you hold, not just the new one.
Credit score and pricing
Jumbo pricing is sensitive to credit. Scores in the mid-700s and above often earn better rates and terms. Many lenders reserve their best pricing for scores of 740 to 760 and higher. Lower scores can trigger higher down payment, reserve, or pricing requirements.
Debt-to-income ratio
Many jumbo programs target a debt-to-income ratio near 43 percent, though some lenders may go up to about 50 percent when strong compensating factors exist, such as high assets, high credit scores, or low loan-to-value.
Loan-to-value and down payment
The most favorable pricing typically appears at 80 percent loan-to-value or lower, which means at least 20 percent down. Some lenders will allow as little as 10 percent down to 90 percent LTV, but pricing and reserve requirements are usually higher. Private mortgage insurance may be available on certain conventional jumbos above 80 percent LTV, though offerings and costs vary by lender.
Appraisals and valuation
Full appraisals are standard for jumbo loans. In high-end Eastside neighborhoods with custom homes, lenders may require interior and exterior inspections, and occasionally a second appraisal. Appraisal fees and timelines can run higher than average due to property complexity.
How jumbo rates compare to conforming
Understanding why jumbo rates move the way they do will help you interpret quotes.
What drives pricing
Conforming loans are bundled into mortgage-backed securities that Fannie Mae and Freddie Mac guarantee. That structure creates deep liquidity and standardized pricing. Jumbo loans are either sold to private investors or held as portfolio assets, so pricing depends more on investor demand, lender capital costs, and perceived credit risk.
Typical rate spread
Historically, jumbo rates have often been slightly higher than conforming rates because investors accept more risk and less liquidity. The spread commonly ranges from a few basis points up to 20 to 50 or more, depending on market conditions. There are also times when jumbos price similarly or even slightly lower than conforming loans due to strong investor appetite.
What you control
Your profile and loan structure have a meaningful effect on rate and fees:
- Credit score
- LTV and down payment
- Verified reserves
- Loan size and complexity
- Documentation type (full documentation usually prices better than bank-statement or asset-based programs)
A well-qualified borrower with 20 percent down, high credit, and strong reserves may see only a modest spread versus conforming options. Less documentation or higher LTV typically adds a premium.
Strategies to strengthen your jumbo offer
Positioning matters in competitive Eastside markets. Use these practical levers to present a strong file and improve confidence with sellers.
Aim for best-practice targets
- Credit: target a FICO score of 740 or higher for the best pricing. If needed, tidy up revolving balances and review reports for errors ahead of preapproval.
- Down payment: plan for at least 20 percent when possible. If the loan amount is close to the King County conforming limit, a slightly larger down payment that keeps you under the limit can unlock conforming pricing and more program options.
- Reserves: hold at least 6 to 12 months of PITIA in liquid assets. For loans above $1 million, plan for 12 months or more unless a lender indicates otherwise.
Choose the right product for your situation
- Securities-backed lending can help you move quickly without liquidating investments, though you should understand margin risk.
- Bridge loans or HELOCs can provide temporary funds if you need to close before accessing other capital.
- Portfolio lenders may be more flexible with equity compensation, partnership income, or trust distributions.
Prepare complete documentation
Assemble two years of tax returns, W-2s, recent pay stubs, K-1s if applicable, and 24 months of bank or investment statements. If you plan to use gift funds or trust assets, verify lender acceptability early and collect all required letters or documentation.
Get fully preapproved
In a sellers’ market with multiple offers, a full preapproval with your chosen jumbo lender carries more weight than an online prequalification. A clear preapproval that confirms income, assets, credit, and reserve requirements gives sellers confidence in your financing.
Local timing and closing considerations
High-end Eastside properties sometimes require more time for valuation and underwriting because of custom features and limited comparable sales. Build extra time into your contract timeline to account for appraisal scheduling, potential second valuations, and any additional documentation requests.
Closing costs scale with price. Be sure your estimates include local title, escrow, recording fees, and Washington transfer taxes where applicable. Your lender will provide a loan estimate with fees, and you can refine those numbers as you approach mutual acceptance.
Your next steps
Here is a concise plan to stay ahead of the process:
- Confirm the current FHFA conforming loan limit for King County for your purchase year.
- Obtain a full preapproval from a lender experienced with jumbo loans. Ask for written confirmation of documentation and reserve requirements.
- Gather two years of tax returns, W-2s, recent pay stubs, and 24 months of bank or investment statements. If using an alternative program, assemble the required bank-statement files.
- Review your credit profile and make simple improvements where practical.
- Discuss portfolio, bank-statement, or securities-backed options with your lender if timing, liquidity, or tax planning is a concern.
- Allow extra time for appraisal and underwriting when you write offers on high-value properties in Bellevue and nearby markets.
With the right preparation, you can shop confidently and present a compelling offer on the Eastside. If you are weighing jumbo versus conforming, or deciding how much to put down to optimize rate and flexibility, thoughtful planning early in your search can unlock better terms and a smoother closing.
Ready to explore Eastside homes and align your financing strategy with your goals? Connect with a trusted local advisor who understands both the luxury market and the practical steps that win in multiple-offer situations. Reach out to Melissa Boucher to start a focused, private conversation tailored to your purchase.
FAQs
How do I know if I need a jumbo in Bellevue?
- Compare the mortgage amount you will need after your down payment to the current FHFA conforming loan limit for King County; anything above that limit is a jumbo.
Are jumbo rates much higher than conforming rates?
- It depends on your credit, down payment, reserves, documentation, and market conditions; well-qualified buyers often see only a modest spread, while higher LTV or alternative documentation usually costs more.
How much cash do I need beyond the down payment for a jumbo?
- Plan for down payment plus closing costs plus reserves, with reserves often ranging from 6 to 24 months of PITIA depending on loan size, LTV, and your profile.
Can investment or retirement accounts count as reserves on a jumbo?
- Yes, lenders generally accept liquid investment accounts and may accept retirement accounts with discounts or additional documentation showing access and value.
Do VA borrowers get zero down for $1.5M Eastside homes?
- VA does not set a hard loan cap, but entitlement and county limits affect zero-down coverage; for amounts above the county limit, a down payment is often required on the portion that exceeds the limit.
Do jumbo appraisals take longer in Bellevue and nearby markets?
- They can, especially for custom or waterfront homes, and a lender may require an interior and exterior inspection or a second appraisal; allow extra time in your closing timeline.