Are you looking for the best Kings County jumbo loans? Here are some of our top tips to get you ready before applying.
Over the past few years, the housing market in Kings County has been characterized by rising home values and increased sales activity.
With a median listing home price of $820k in February 2025 – compared to $760k in February 2024, it is no surprise that demand has been nothing short of robust, and the competition among buyers is only growing stronger.
However, Kings County is also characterized by a wide variety of property types – from luxury homes in affluent areas to modest apartments in more affordable neighborhoods, there is truly something for everyone.
If you are looking to purchase your dream home in Kings County, it is important to know that the type of property and its value will often determine the type of loan that you might need to apply for.
If the value of the home exceeds the conforming limits set by the Federal Housing Finance Agency (FHFA), a conventional loan will do the trick – however, if you want to purchase a property above these limits, you will have to apply for a jumbo loan.
So, what are some of the key things that you need to know about Kings County jumbo loans? Let’s take a look:
1. Kings County is Considered a High-Cost Area
The most important thing that you need to know about Kings County jumbo loans is that Kings County is considered a high-cost area when it comes to conforming loan limits. But what does this mean exactly?
As we mentioned earlier, the Federal Housing Finance Agency establishes certain limits on the purchase of properties in the U.S. with conventional loans.
These limits exist to maintain stability and affordability in the housing market by regulating the types and amounts of mortgages that government-sponsored enterprises like Fannie Mae and Freddie Mac can buy or guarantee.
However, not all areas in the U.S. are treated equally – because of the varying housing costs and local real estate values, there are significant regional differences that cause some areas to be considered high-cost, meaning that the conforming loan limits are higher.
Kings County is considered a high-cost area because the median home prices are substantially higher than the national average. So, if the regular conforming loan limit as of February 2025 is $806,500, it is higher for areas like Kings County is up to $1,209,750.
2. You May Have to Meet Stricter Qualification Criteria
Another key consideration when it comes to Kings County jumbo loans is that you may have to meet stricter qualification criteria if you are applying for a jumbo loan compared to a regular conventional loan.
So, if the property that you are looking to purchase in Kings County costs $1,209,750 or higher, be prepared to meet the following requirements:
Credit Score – While a credit score of +620 may suffice for a conventional loan, Kings County jumbo loans often require a credit score of 700 or higher.
Debt-to-Income Ratio – Conventional loans may typically tolerate a DTI of 45-50%, although less than 43% is preferred. However, with jumbo loans, you might have to show a Debt-to-Income Ratio of 36% or less.
Income Verification – Conventional loans have more flexibility than Kings County jumbo loans when it comes to employee verification.
Employee Verification – Employee verification methods are usually verbal or electronic, while jumbo loans require more detailed checks, including a written confirmation.
3. You Will Need to Have Cash Reserves of 6-12 Months of Mortgage Payments
When it comes to Kings County jumbo loans, be prepared to show your lender cash reserves of 6 to 12 months of mortgage payments.
This is important because it gives lenders reassurance that you will be able to meet your mortgage payments if you are experiencing a period of financial hardship.
To give you a practical example, let’s say that your monthly jumbo mortgage payment is $5,000, including principal, interest, taxes and insurance. If your lender requires 12 months in cash reserves, you must demonstrate at least $60,000 in liquid assets before closing.
So, what exactly counts as cash reserves for Kings County jumbo loans?
Savings accounts
Checking accounts
Money market accounts
Certificates of Deposit (CDs)
Stocks, bonds, and mutual funds
Retirement Accounts (401k, IRA) – usually 60-70% of balance
Since Kings County jumbo loans represent higher risk compared to conventional loans, lenders need additional reassurance that you will be able to meet your mortgage payments.
4. You Will Have to Show a Detailed Income And Employment Verification
Before applying for Kings County jumbo loans, make sure that you can show a detailed income and employment verification. This includes:
2 or more years of W-2 forms
Last 2 months of pay stubs
Detailed employment verification
If you are self-employed, you will have to show 2 or more years of personal and business tax returns, profit & loss statements and balance sheets, as well as 12 months of bank statements.
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5. Your Property Will Need to Undergo a Rigorous Property Appraisal
If you are looking to apply for Kings County jumbo loans, keep in mind that your property will also need to undergo a rigorous property appraisal. Since jumbo loans involve higher loan amounts – which translate to higher risk for lenders, they need to be thoroughly inspected.
As a result, jumbo loans require appraisals that are more detailed than those of conventional ones. A professional licensed appraiser will evaluate construction quality and age, structural integrity, and will conduct a comparative market analysis of the property.
In some cases for Kings County jumbo loans, a property may need two separate appraisals, especially if the loan exceeds $2 million, or the property has unusual features that lack recent comparable sales in the area.
6. You May Have to Undergo a Longer Underwriting Process
When it comes to applying for Kings County jumbo loans, patience is key – in comparison with conventional loans, jumbo loans often face longer approval times due to detailed documentation and verification processes.
Approval times for jumbo loans may take up to 60 days, while conventional loans typically close faster, usually within 30 days or less. To speed up the process, make sure to have all of your documentation ready, and as detailed as possible.
Preparing this information in advance helps streamline underwriting, prevents delays, and increases your chances of timely loan approval.
7. King County Jumbo Loans Offer Flexibility When It Comes to Eligible Properties
While Kings County jumbo loans offer less flexibility than conventional loans across different aspects, they have flexibility when it comes to eligible properties. You can use the jumbo loan to purchase a property for:
Primary residences
Second homes
Vacation homes
Investment properties
However, eligibility requirements may differ depending on the property type and its intended use – so make sure to check that with your lender before applying for Kings County jumbo loans.
Where to Get King County Jumbo Loans
Are you looking for the best King County jumbo loans? Jet Direct Mortgage offers personalized jumbo loan solutions, competitive rates, and dedicated customer support to guide you smoothly through the lending process.
With extensive experience in New York’s high-value housing market, we understand the unique demands of jumbo financing and can help you secure the best terms available. Contact us today to get started on purchasing your dream home in Kings County
In Kings County, a jumbo loan is a mortgage exceeding the conforming loan limit of $1,209,750 set by the Federal Housing Finance Agency (FHFA) for 2025.
Any mortgage above this amount is considered a jumbo loan, typically requiring stricter qualifications, larger down payments, and possibly higher interest rates due to increased lender risk.
How long does the jumbo loan approval process take?
The jumbo loan approval process typically takes around 45 to 60 days due to detailed underwriting, rigorous property appraisals, and extensive documentation required.
Unlike conventional loans, jumbo loans involve stricter verification of income, assets, and employment, resulting in a lengthier approval timeline. Preparing documents in advance helps streamline this process.
Can I use a jumbo loan for investment properties or second homes?
Yes, you can use a jumbo loan for investment properties or second homes, but the requirements are stricter than for primary residences.
Lenders typically require a higher down payment, a strong credit score (usually 720+), lower debt-to-income ratios, and substantial cash reserves. Interest rates may also be slightly higher due to the increased risk associated with non-primary residences.
Can I refinance an existing jumbo loan?
Yes, you can refinance an existing jumbo loan, but the process involves strict qualification requirements. Lenders typically require a high credit score (usually 700+), a low debt-to-income ratio, and significant home equity, often 20% or more.
Refinancing can help lower interest rates, reduce monthly payments, or switch loan terms, but closing costs and appraisal requirements should be considered.
Are jumbo loan terms fixed or adjustable?
Jumbo loan terms can be either fixed or adjustable, depending on the borrower’s preference and financial goals.
Fixed-rate jumbo loans offer consistent payments over the loan term, typically 15 to 30 years, while adjustable-rate jumbo loans (ARMs) start with a lower interest rate for an initial period before adjusting periodically. Borrowers should choose based on risk tolerance and long-term plans.
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