Shopping for a Greenwood Village home above seven figures and wondering how to finance it confidently? You are not alone. Many homes in this luxury submarket require jumbo financing, which comes with different rules than typical conforming loans. In this guide, you will learn how jumbo loans work in Arapahoe County, what lenders expect, and how to position your offer to win in a competitive, high-end market. Let’s dive in.
What is a jumbo loan in Arapahoe County
A jumbo loan is a mortgage that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency for each county. Loans at or under the limit can be purchased by Fannie Mae and Freddie Mac. Loans above that limit are considered jumbo and are usually held by private lenders or sold to private investors.
Greenwood Village sits within the Denver Tech Center corridor and has a high concentration of premium homes. Many single-family properties here are priced above the Arapahoe County conforming limit, so jumbo financing is common for relocation executives and move-up buyers.
How to check your loan type
- Confirm the current-year conforming loan limit for Arapahoe County. The threshold changes annually.
- If the amount you need to borrow is above the county’s conforming limit, your loan is jumbo.
- Some counties have a separate high-balance conforming tier, but if your area is not designated high-cost, anything above the local conforming limit is a true jumbo.
Tip: Before you tour homes, check the latest Greenwood Village pricing trends and active luxury inventory from reputable local sources so you understand how often listings exceed the county limit.
Why jumbos are common in Greenwood Village
Greenwood Village is part of Denver’s luxury market and attracts buyers who value proximity to corporate campuses, parks, and premium custom homes on larger lots. As a result, many listings price above the local conforming threshold. That is why you will often see jumbo requirements for both relocation purchases and move-up buyers seeking more space and amenities.
Common jumbo loan options
- Conventional jumbo (full-doc). Best for W-2 income earners or clearly documented self-employment. Underwritten by portfolio or wholesale lenders.
- Portfolio jumbo. Held in-house by the lender, which can allow more flexibility on reserves, property types, or unique home features.
- Non-QM, bank-statement, or asset-based. Useful for business owners or executives whose tax returns do not show the full income picture. These options usually carry more documentation and higher pricing.
- Relationship or private bank jumbo. Wealth management lines may offer tailored terms when you keep deposits or investment accounts with the bank.
- Adjustable-rate and interest-only. These can lower the initial payment, but they have different risk profiles and rules. Make sure you understand adjustment terms and exit strategies.
Down payment, LTV, and mortgage insurance
- Typical down payment for a primary residence is 20 to 30 percent to access stronger pricing and smoother approvals. Some borrowers secure 10 to 15 percent with excellent credit and significant reserves, though this is less common.
- For second homes or investment properties, plan on 25 to 35 percent or higher.
- Lower loan-to-value (LTV) often improves pricing, with meaningful steps at or below 80 percent LTV.
- Traditional private mortgage insurance is not usually available on jumbo loans the way it is on conforming loans. Some buyers use a piggyback second, such as an 80/10/10 structure, when available.
What drives jumbo rates
Jumbo pricing moves with market conditions and investor demand. It can be slightly higher than conforming or, at times, very competitive. On large loan amounts, even a 0.125 percent change can be meaningful to your monthly payment.
Key factors that influence your rate:
- Credit score, with best terms often at 740 and above.
- LTV, where more equity generally earns better pricing.
- Debt-to-income and cash reserves, where stronger positions help.
- Loan size and product features, including ARMs and interest-only.
- Property type and occupancy, since condos and second homes can price differently.
- Documentation level, with full-doc typically pricing better than bank-statement or non-QM.
Your jumbo documentation checklist
Bring complete, organized documents. It speeds approvals and strengthens your offer.
- Identity and residency: government ID and Social Security number.
- Income verification:
- W-2 employees: last 2 years of W-2s, 30 days of pay stubs, employer contact information.
- Self-employed or 1099: last 2 years of personal and business tax returns, profit and loss statements, and sometimes business bank statements.
- Asset-based income: recent statements for bank, investment, and retirement accounts; be ready to explain large or irregular deposits.
- Bonuses, deferred comp, or stock options: employer letters and vesting documentation, often a 2-year history.
- Credit and verification forms: expect a credit report, employment verification, and possibly IRS transcript authorization.
- Reserves: many jumbo lenders require 6 to 12 months of PITI for primary residences, more for second homes or investment properties.
- Down payment and gift funds: allowed by many lenders with full documentation and gift letters.
- Appraisal: a full appraisal is standard. Unique or high-end properties may require additional comparable sales or a specialty appraisal.
How to compete in Greenwood Village
- Get pre-underwritten, not just prequalified. Ask for a pre-approval with underwriting conditions so you are largely approved pending the appraisal and title.
- Show funds and reserves early. Provide clear statements for down payment, closing costs, and required reserves. Explain large transfers in advance.
- Use lenders who do jumbos locally. Portfolio and relationship lenders can move faster and may handle unique properties or complex income with fewer surprises.
- Consider bridge financing. If you need equity from your current home to buy, a bridge loan or temporary financing can help. Understand the costs and timeline.
- Plan your contingencies. Do not waive without understanding risks, but align inspection, appraisal, and financing windows with your lender’s realistic timeline.
- Discuss rate-lock strategy. On longer searches, review lock periods and float-down options. Tiny market moves are magnified on jumbo balances.
Timeline: what to expect
Full documentation jumbo underwriting often takes longer than conforming. Plan on about 30 to 45 days from application to close for a straightforward file. Complex income, multiple properties, or large asset movements can extend this. Starting early with a thorough pre-underwrite helps you close on time.
Avoid these common pitfalls
- Underestimating total cash to close. Luxury properties can carry higher taxes, insurance, and closing costs, plus larger reserve needs.
- Relying on a quick prequal letter. Late-stage underwriting issues can derail a competitive offer.
- Moving funds without a paper trail. Large or unexplained deposits delay approvals.
- Choosing a lender without local jumbo expertise. Greenwood Village appraisals and luxury overlays require experience.
Next steps
If a Greenwood Village home is on your horizon, line up your jumbo strategy before the first showing. Confirm the current Arapahoe County conforming limit, review your down payment and reserve plan, and secure a pre-underwrite with a lender that regularly handles Denver-area luxury purchases. When you pair strong financing with local market guidance, you can act quickly and negotiate with confidence.
Ready to plan your move? Connect with Kylie Russell Real Estate for local strategy, lender introductions, and a smooth path to closing.
FAQs
How do I know if I need a jumbo loan in Greenwood Village?
- Check the current-year conforming loan limit for Arapahoe County. If the amount you need to borrow is above that limit, your mortgage will be considered jumbo.
What down payment is typical for a $1M home?
- Many jumbo lenders expect 20 to 30 percent down for best pricing. Some allow lower down payments with strong credit and reserves, or through portfolio lenders.
Do jumbo loans have mortgage insurance?
- Traditional PMI used on conforming loans is not common for jumbos. Buyers typically avoid PMI by making a larger down payment or using a piggyback second when available.
How long does jumbo underwriting take for Greenwood Village homes?
- Plan for about 30 to 45 days from application to closing on a clean file. Complex income or unique properties can add time, so pre-underwriting helps.
Can I qualify using bonus or stock income?
- Yes. Lenders usually require a documented history for bonuses and vested stock options, plus employer letters and account statements to count them as qualifying income.
Are jumbo rates much higher than conforming?
- Not always. Jumbo rates can be close to or sometimes even lower than conforming depending on market conditions and your profile. Credit, LTV, reserves, and product type are key drivers.
Want a clear jumbo plan tailored to Greenwood Village? Reach out to Kylie Russell Real Estate to get started.
