What Are Jumbo Loans?

A jumbo loan is a type of mortgage that allows you to borrow an amount that exceeds the standard conforming loan limits set by the Federal Housing Finance Agency (FHFA). In most of the U.S., loans above these limits are considered “jumbo” because they cannot be purchased or guaranteed by Fannie Mae or Freddie Mac. That makes them riskier for lenders, but also incredibly valuable for buyers in high-cost housing markets like Brooklyn, NY.

For 2025, the conforming loan limit for a single-family home in most areas is around $766,550. However, in Brooklyn, where luxury condos, brownstones, and multi-family homes often exceed this price, many buyers need financing beyond that threshold. This is where jumbo loans step in—providing the financial flexibility to purchase homes that fall outside of the conforming loan range.

Unlike conventional mortgages, jumbo loans are specifically tailored for borrowers looking at properties that carry higher price tags. They can be used to purchase primary residences, second homes, or even investment properties across Brooklyn. From waterfront penthouses in Dumbo to historic townhouses in Carroll Gardens, jumbo loans are often the only way to finance these unique and high-value properties.

Jumbo Loan Limits in Brooklyn, NY

Understanding loan limits is essential when exploring Jumbo Loans in Brooklyn, NY. The Federal Housing Finance Agency (FHFA) sets annual conforming loan limits, which represent the maximum loan amounts that Fannie Mae and Freddie Mac are allowed to purchase. For 2025, the national conforming loan limit for a single-family property is $766,550 in most areas.

However, because Brooklyn is part of New York City, a high-cost metropolitan area, the conforming loan limit is higher—around $1,149,825. This means any mortgage above that amount automatically qualifies as a jumbo loan.

In Brooklyn’s thriving housing market, where median home prices in neighborhoods like Brooklyn Heights, Williamsburg, and Park Slope can easily surpass $1.5 million, it’s not uncommon for buyers to need jumbo financing. Whether you’re purchasing a luxury condo with skyline views, a spacious brownstone for your family, or an investment property in a trendy neighborhood, jumbo loans bridge the gap between conforming loan caps and the actual cost of Brooklyn real estate.

This higher threshold makes jumbo loans an essential tool for homebuyers and investors who want to stay competitive in one of the hottest real estate markets in the country. By working with an experienced mortgage team, you can better understand how these loan limits impact your buying power and long-term financial strategy.

Eligibility Requirements for Jumbo Loans

Because jumbo loans involve larger amounts and are not backed by Fannie Mae or Freddie Mac, lenders follow stricter standards when approving borrowers. If you’re considering Jumbo Loans in Brooklyn, NY, here are the key requirements you should be prepared for:

✔ Minimum Credit Score

Most lenders require a strong credit history. Typically, a credit score of 700 or higher is preferred. Some lenders may accept slightly lower scores with compensating factors, but the stronger your credit, the better your chances of approval.

✔ Debt-to-Income Ratio (DTI)

Lenders pay close attention to your debt-to-income ratio. For jumbo loans, a DTI of 43% or lower is often required. This shows that you can comfortably manage both your existing obligations and the new mortgage payment.

✔ Down Payment Requirements

Jumbo loans usually require larger down payments compared to conforming loans. While some lenders may allow as little as 10% down, most expect at least 15–20% of the purchase price. In competitive areas of Brooklyn, a stronger down payment may also help strengthen your offer.

✔ Income & Asset Verification

To qualify for jumbo financing, lenders will carefully evaluate your income, assets, and reserves. This often includes:

• W-2s and tax returns (for salaried employees).
  
  
• Bank statements and proof of liquid assets.
  
  
• Business financials (for self-employed borrowers).
  
  
• Documentation of investment income or other revenue streams.
  
  

✔ Cash Reserves

Unlike conventional loans, jumbo lenders typically want borrowers to show several months of mortgage payments in reserve. Depending on the loan amount, this can range from 6 months to 12 months of reserves.

✔ Property Appraisal

Since jumbo loans involve high-value properties, lenders often require two appraisals to ensure the property’s market value aligns with the loan request.

Meeting these requirements can feel overwhelming, but with the right mortgage advisor, the process becomes far more manageable. At Team Karlin – Powered by Go Rascal Inc, we guide our clients step-by-step through eligibility requirements, making sure you’re prepared with the right documentation and financial profile.

Benefits of Jumbo Loans in Brooklyn, NY

Choosing a jumbo loan in Brooklyn, NY opens the door to unique opportunities, especially in a market where property values often surpass conforming loan limits. While these loans come with stricter requirements, they also provide several advantages for buyers and investors.

✔ Finance High-Value Homes

Jumbo loans allow you to purchase luxury properties, historic brownstones, or modern condos in some of Brooklyn’s most desirable neighborhoods. Without jumbo financing, many of these homes would be out of reach for most buyers.

✔ Flexible Loan Structures

Borrowers can choose between fixed-rate jumbo loans for predictable monthly payments or adjustable-rate jumbo loans (ARMs) that may start with a lower interest rate. This flexibility helps match the loan to your financial strategy.

✔ Purchase Diverse Property Types

With jumbo financing, you can buy:

• Luxury condos in Williamsburg or Dumbo
  
  
• Multi-family residences in Crown Heights or Bedford-Stuyvesant
  
  
• Spacious brownstones in Park Slope
  
  
• Investment properties across Brooklyn
  
  

✔ Opportunity for Refinancing

Jumbo loans can also be refinanced to take advantage of lower rates, consolidate debt, or free up cash for renovations, investments, or other financial goals.

Why Choose Team Karlin – Powered by Go Rascal Inc

When it comes to securing a jumbo loan in Brooklyn, NY, choosing the right mortgage partner can make all the difference. At Team Karlin – Powered by Go Rascal Inc, we bring local expertise, personalized service, and a deep understanding of Brooklyn’s real estate market to every client we serve.

Here’s why homebuyers and investors trust us:

✔ Expertise in the Brooklyn Market

With years of experience in New York’s dynamic real estate landscape, our team understands the nuances of Brooklyn neighborhoods and property values. This insight helps us secure the right financing for your dream home.

✔ Wide Range of Loan Products

We partner with multiple lenders to offer a diverse selection of jumbo loan products, giving you flexibility in terms, rates, and loan structures.

✔ Competitive Rates & Terms

Our strong industry connections allow us to secure competitive interest rates and favorable terms, ensuring you get the best possible financing for your high-value property.

✔ Transparent & Supportive Process

From pre-approval to closing, we guide you every step of the way with clear communication and full transparency. No hidden surprises—just expert support when you need it most.

✔ Dedicated Client Care

We believe in building long-term relationships, not just closing loans. Our team is always available to answer questions, provide guidance, and help you make confident decisions.