Shopping for a home in Bellevue or Redmond and unsure if your loan will be considered jumbo? You are not alone. Prices across the Eastside often sit above standard lending caps, and the rules can feel confusing. This guide breaks down jumbo loans in clear terms, so you know how they work, what to expect, and how to move forward with confidence. Let’s dive in.
Jumbo vs. conforming basics
A jumbo loan is any mortgage amount above the conforming loan limit set by the Federal Housing Finance Agency (FHFA). Conforming loans can be purchased by Fannie Mae or Freddie Mac, while jumbo loans cannot and are usually held by lenders or private investors. This difference shapes how loans are underwritten and priced.
Because jumbos are not agency-backed, lenders set their own rules. You will often see stricter standards for credit, down payment, and cash reserves. Rates can differ from conforming loans, and the spread changes with the market. In some conditions, very strong borrowers may find jumbo rates similar to or even better than conforming.
Jumbo loans also handle mortgage insurance differently. Many programs reduce loan-to-value limits instead of using traditional mortgage insurance. Some lenders have their own private options or require stronger equity positions to avoid added risk.
Checking King County limits
Your loan type depends on the FHFA county limit for the year you buy. FHFA publishes county-level limits annually. Most counties follow a national baseline, and designated high-cost areas have a higher ceiling. If your loan amount is above the King County limit, your loan is jumbo.
As a reference point, the 2024 national baseline for a one-unit home was $766,550 and the high-cost ceiling was about $1,149,825. King County has historically qualified as a high-cost area due to local prices. Limits change each year, so verify the current number on FHFA’s conforming loan limit table before you make plans.
Quick examples for Eastside prices
- If you buy at $1.5 million with 20% down, your loan is about $1.2 million. Compare $1.2 million to the current King County limit to see if it is jumbo.
- If you buy a $950,000 condo with 15% down, your loan is about $807,500. Check that against the county limit to confirm your category.
- If you want to avoid a jumbo, increase your down payment until your loan amount falls at or below the current limit.
How jumbo underwriting differs
Because jumbo loans are lender-specific, requirements vary. Here is what many Bellevue and Redmond buyers see:
- Credit score: Many lenders look for 700 to 760+ for best pricing. Some consider lower scores with stronger reserves or higher rates.
- Down payment: Many programs ask for 10 to 20% down. Strong borrowers often see 80% loan-to-value options, while higher LTVs can bring additional costs.
- Reserves: Plan for 6 to 12 months of full housing payments in liquid reserves. Larger or more complex loans may require more.
- Debt-to-income: Caps often fall in the 43 to 50% range, with tighter overlays common.
Income documentation is usually full doc. If you are self-employed or have complex income, expect a deeper review. Some portfolio lenders offer bank-statement or asset-based programs, which can help if tax returns do not reflect your true cash flow. These options typically come with higher rates and stronger reserve needs.
Assets, RSUs, and source-of-funds
Eastside buyers often hold significant assets in brokerage accounts or receive compensation through stock options, RSUs, or deferred comp. Be ready to document the source and history of funds, including statements and vesting schedules. Your lender will verify that down payment and reserves are real, accessible, and seasoned.
Appraisals at higher price points
Luxury properties can be harder to appraise. Appraisers may need to pull comparable sales from a wider area or make adjustments for unique features. Lenders often order full interior and exterior appraisals. For distinctive homes, a second appraisal or a review can be required. Build time into your timeline in case the appraisal needs extra diligence.
Condos and new towers in Bellevue
Condo financing includes a project-level review of owner occupancy, investor concentration, and any litigation. Some jumbo lenders are flexible, while others are strict. Newer luxury towers may need additional project approval before a loan can be cleared. If you are eyeing a premium unit downtown, ask your lender to start the project review early.
Rates and pricing for jumbos
Jumbo rates move with investor demand, funding costs, and your profile. Strong borrowers with larger down payments, excellent credit, and low debt often receive very competitive pricing. Rate shopping matters. Compare national banks, local banks, credit unions, private banks, and mortgage brokers that are active on the Eastside.
Ask about rate lock options. Jumbo locks can have different fees or timeframes than conforming loans. If you are buying new construction or a complex property, you may need a longer lock to carry you to completion.
Timing in Bellevue and Redmond
Transactions with jumbo financing often take a bit longer due to more documentation and appraisal complexity. Plan for 30 to 45 days from mutual acceptance to closing. If you are self-employed or using assets for reserves, build in extra time for underwriting to verify everything.
Appraisals on luxury homes commonly run 7 to 14 days, and longer in busy seasons. Spring and early summer bring the most volume, which can stretch timelines for both lenders and appraisers. For condos or new construction, project approval or builder documentation review can add days to the schedule.
Your step-by-step plan
- Get pre-underwritten. Ask your lender to fully review credit, income, and assets before you shop. A strong pre-approval helps your offer stand out.
- Verify the current FHFA county limit. Confirm that your loan amount is above or below the King County limit for the current year.
- Choose a jumbo-savvy lender. Look for proven experience with Bellevue and Redmond luxury homes and condos.
- Prepare documents upfront. Collect W-2s, pay stubs, tax returns, bank and brokerage statements, RSU grant details, and any K-1s or business returns.
- Plan your rate lock. Confirm lock length, extension options, and when you can float down if rates improve.
- Schedule appraisal early. Coordinate access quickly, especially for unique homes with limited comparable sales.
- Align contingencies with reality. Short timelines are appealing, but set mortgage and appraisal windows you can meet.
Strategies to win with a jumbo
- Share strength in your offer. Include a current, detailed pre-approval and a short summary of reserves from your lender.
- Offer realistic timelines. Sellers appreciate clarity on appraisal and loan conditions when a jumbo is involved.
- Coordinate with your agent and lender. Quick communication on document requests and appraisal scheduling reduces surprises.
- Be flexible where it counts. If you can adjust closing or possession terms, you may create an edge without increasing price.
Refinance and second-lien options
If you already own on the Eastside, you can use jumbo financing for rate-and-term or cash-out refinancing. The same documentation standards apply. Some owners consider a home equity line or a second mortgage instead of a full jumbo refi. These can be faster, but they carry different rate and risk profiles. Weigh the total cost and flexibility before you decide.
Putting it all together
On the Eastside, many homes in West Bellevue, Enatai, Bridle Trails, and parts of Redmond regularly bump into jumbo territory. The key is preparation. Confirm your county limit, match your profile to the right lender, and set a timeline that fits the property you want. With a strong plan, you can compete confidently for the home that fits your life.
If you are exploring Bellevue, Redmond, or nearby Eastside neighborhoods and want a clear path to closing, reach out to Taeya Harle. You will get local insight, thoughtful guidance, and a plan that fits your timeline and goals.
FAQs
How to tell if your loan is jumbo in King County
- Compare your loan amount to the current FHFA conforming limit for King County; if it is higher, it is a jumbo loan.
Typical down payment for Bellevue jumbo purchases
- Many lenders allow 10 to 20% down for strong borrowers; lower down payments can require higher reserves or pricing.
Are jumbo rates higher than conforming rates
- Often slightly higher, but not always; in some markets, very qualified borrowers can secure comparable or even better pricing.
How long jumbo underwriting and closing take on the Eastside
- Plan for 30 to 45 days, with longer timelines possible for complex income, luxury appraisals, condos, or new construction.
Financing a downtown Bellevue condo with a jumbo loan
- It is possible, but lenders review the condo project; new or luxury towers may require extra documentation or project approval.
