Loan types
Jumbo loan
A mortgage larger than the conforming loan limit, so it can't be sold to Fannie Mae or Freddie Mac — requiring stronger credit, a larger down payment, and cash reserves.
What does jumbo loan mean?
A jumbo loan finances an amount above the conforming limit, which lenders hold on their own books or sell privately. That means stricter underwriting: expect a 700+ score, 10–20% down, full documentation, and reserves. Because banks carry the risk themselves, jumbo pricing is relationship-driven — institutions with strong deposits often price aggressively for existing clients. In Michigan, jumbo territory is concentrated in Ann Arbor, Oakland County, and lakefront markets; everywhere else the median purchase stays comfortably conforming.
Common questions
When do I need a jumbo loan in Michigan?
When you borrow more than the conforming limit — which in Michigan mostly happens in Ann Arbor, Oakland County, and lakefront markets. Elsewhere the median purchase stays conforming.
What credit and down payment do jumbos require?
Usually a 700+ score, 10–20% down, full documentation, and cash reserves, since lenders hold the risk themselves rather than selling to Fannie or Freddie.
What is a high-balance loan?
Pricing in the band just above the conforming floor — cheaper than true jumbo. Near the limit, ask a Michigan lender whether your loan qualifies as high-balance.
Related terms