A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. In most parts of the U.S., including South Carolina, that limit is $766,550 as of 2025. If you’re buying a luxury, lakefront, or multi-million-dollar home near Lake Marion, you may need a jumbo loan to finance the purchase.
What Is a Jumbo Loan?
A jumbo loan is a type of mortgage used to finance high-value properties that cost more than the limits set by the Federal Housing Finance Agency (FHFA). These loans are too large to be purchased or guaranteed by Fannie Mae or Freddie Mac, which makes them non-conforming loans.
As of 2025:
- In most counties across South Carolina (including Orangeburg and Clarendon), the conforming loan limit is $766,550
- Any loan above this amount is considered a jumbo loan
These mortgages are common in affluent markets and areas with high-value waterfront properties—such as luxury homes around Lake Marion.
Jumbo Loan vs. Conforming Loan
Feature | Conforming Loan | Jumbo Loan |
Loan Limit (2025) | Up to $766,550 | Over $766,550 |
Backed By | Fannie Mae/Freddie Mac | Private lenders |
Credit Score Needed | 620+ | 700+ recommended |
Down Payment | 3%–20% | Typically 10%–20%+ |
Interest Rates | Lower, government-backed | Slightly higher (risk-based) |
Property Type | Primary, secondary, rental | Mostly primary/second homes |
Who Needs a Jumbo Loan in the Lake Marion Area?
While most homes in South Carolina fall within conforming loan limits, certain properties—especially near Lake Marion’s waterfront—require jumbo financing due to their size, land, and features.
Examples of jumbo loan-worthy properties:
- Luxury lakefront estates
- Homes with private docks and acreage
- New construction on premium lots
- Multi-family or multi-unit primary homes
- Homes priced over $800,000–$3.5M, common in exclusive lake communities
If you’re planning to purchase a custom-built home, investment-grade vacation home, or primary residence with extra land or premium finishes, a jumbo loan may be your only financing option.
Qualifications for a Jumbo Loan
Because jumbo loans are not backed by the government, lenders take on more risk—and that means stricter requirements.
To qualify for a jumbo loan, you typically need:
- Credit score of 700 or higher (some lenders accept 680)
- Low debt-to-income ratio (DTI) — often capped at 43%
- Large down payment — generally 10–20% of the purchase price
- Strong reserves — many lenders require 6–12 months of mortgage payments in cash or assets
- Full financial documentation — tax returns, bank statements, investment accounts, etc.
Some lenders also perform manual underwriting for jumbo loans, reviewing every detail of your financial profile.
Interest Rates and Terms for Jumbo Loans
Jumbo loan interest rates used to be much higher, but thanks to market competition and risk-based pricing, they’re often just slightly above—or even equal to—conventional loan rates today.
Typical terms:
- Loan amounts from $800,000 to $5 million+
- Fixed or adjustable rates (30-year fixed is common)
Interest rates may vary based on:
- Credit score
- Down payment size
- Property location and type
- Reserve assets
Lake Marion Tip:
If you’re financing a waterfront property, some lenders may charge a premium or require higher reserves due to flood zone considerations. Let Carolina Properties help you navigate lender guidelines.
Pros and Cons of Jumbo Loans
✅ Pros:
- Access to high-value properties
- No mortgage insurance (even with less than 20% down, depending on the lender)
- Ideal for luxury homes and second properties
- Often customizable terms for well-qualified buyers
❌ Cons:
- Stricter qualifications than conventional loans
- May require larger cash reserves
- Higher risk for lenders = stricter scrutiny
- Higher closing costs
Jumbo Loan Process—How It Works
Jumbo Loan Steps:
- Get preapproved with a lender who handles jumbo loans
- Provide detailed financial documentation
- Choose a high-value home with your agent
- Undergo manual underwriting and in-depth credit review
- Submit to appraisal—often with additional property review
- Close on your new luxury home!
Pro Tip: Work with a real estate team (like Carolina Properties at Lake Marion) that understands luxury lending and can help coordinate with specialized lenders.
FAQ: Jumbo Loans
Q: What loan amount qualifies as jumbo in South Carolina?
A: Any mortgage over $766,550 in 2025 is considered a jumbo loan in most South Carolina counties.
Q: Can I get a jumbo loan with 10% down?
A: Yes—some lenders allow 10% down, but you may need a very high credit score and reserves.
Q: Do jumbo loans have PMI?
A: Generally, no. However, some lenders may have rate adjustments for low down payments.
Q: Are interest rates higher for jumbo loans?
A: Not always. Rates are competitive but may be slightly higher due to the increased lender risk.
Q: Can I use a jumbo loan to buy a second home?
A: Yes—jumbo loans are available for primary, secondary, and vacation properties.
Final Thoughts: Ready for a Jumbo Loan? Carolina Properties Can Help
If you’re shopping for a luxury property, multi-acre estate, or prime lakefront home in the Lake Marion area, a jumbo loan may be the key to financing your dream home.
At Carolina Properties at Lake Marion, we specialize in helping buyers:
- Identify jumbo loan-eligible homes
- Connect with reputable jumbo lenders
Navigate complex financing requirements - Close smoothly on high-value homes
Contact us today to get preapproved for a jumbo loan, schedule private showings, and explore the best luxury listings in the Lake Marion region.