Shopping for a $900k to $1.5M home in Cary? You are likely looking at a jumbo mortgage, and the rules can feel different than what you may have heard about standard loans. You want a smooth path to closing, a competitive offer, and clear answers about down payment, reserves, rates, and timing. This guide breaks it down so you know what to expect, what to prepare, and how to position your offer to win in Wake County’s higher-end market. Let’s dive in.
Jumbo basics in Cary
A jumbo mortgage is any home loan amount that exceeds the local conforming loan limit set each year by the Federal Housing Finance Agency. In Wake County, if your loan amount is above the FHFA county limit, you are in jumbo territory. You can verify the current limit using the official FHFA conforming loan limits tool.
If your target price is between $900k and $1.5M, you should plan for jumbo-level requirements from the start. That means more documentation, stronger credit expectations, and potentially different timelines. The CFPB’s jumbo mortgage explainer offers a helpful overview.
How jumbos differ from conforming
Down payment and LTV
Jumbo loans often come with lower loan-to-value caps than standard conventional loans. Many lenders ask for 10 to 20 percent down, with 80 to 90 percent LTV common for well-qualified buyers. Some lenders offer higher LTV options for top-tier borrowers, but pricing and requirements vary.
Credit score and DTI
You will generally need stronger credit for a jumbo. Many lenders look for a score in the middle to upper 700s for the best terms. Debt-to-income ratios are usually tighter, often targeted under the low to mid 40s depending on your full profile.
Cash reserves and assets
Expect reserve requirements of roughly 6 to 12 months of total housing costs, also known as PITI. Lenders will closely review bank, brokerage, and retirement statements and may ask for explanations of large deposits and documentation for any gift funds.
Rates and PMI
Jumbo pricing varies by market and lender. Historically, jumbo rates may be slightly higher than conforming, though some portfolio lenders can be competitive for exceptional profiles. Private mortgage insurance tied to conforming loans usually does not apply to jumbos, so lenders rely on down payment, reserves, or other risk controls. For a consumer-friendly overview, see Bankrate’s jumbo guide and Investopedia’s jumbo overview.
Documentation depth
Plan for a thorough review. Common requests include 2 years of tax returns, W-2s, recent pay stubs, bank and investment statements, and documentation for any other real estate owned. Self-employed buyers should be ready with 1099s, K-1s, and business returns as applicable.
Product types
You will see fixed-rate jumbos, adjustable-rate jumbos, portfolio loans held by banks, and non-QM programs that allow flexible documentation at a higher cost. Your profile and timeline will guide the best fit.
Get preapproved early in Cary
Prequal vs preapproval vs underwritten
Prequalification is a quick estimate based on what you report. A preapproval verifies your credit, income, and assets and gives you a written letter to use with offers. An underwritten approval means an underwriter has reviewed your file in depth, which can strengthen your position with sellers. Learn more from the CFPB’s preapproval guidance.
What lenders will request
Bring core documents to jump-start preapproval. If you are self-employed or have variable income, expect more detail. Being organized can shave days off your timeline and help you lock a rate efficiently once under contract.
Timeline and appraisals
Jumbo files can take longer due to extra verification and valuation work. Higher-value Cary homes may need specialty comps or even a second appraisal in rare cases, which can add days. Build that into your offer timeline to reduce stress.
Rate locks
Jumbo rates are sensitive to market shifts. Once under contract, ask your lender about lock timing and any float-down option. Clear communication helps you balance risk and speed.
Choose the right lender type
- National and regional banks. May offer portfolio jumbos and predictable underwriting. Pricing and requirements vary.
- Mortgage brokers. Can shop multiple wholesale lenders for the best mix of rate and terms. Verify jumbo experience in Wake County.
- Credit unions. Often competitive but may have membership rules and specific underwriting criteria.
- Non-QM and alternative lenders. Offer flexible documentation at a higher cost and with different disclosures.
Ask any lender about recent jumbo closings in Wake County, average days to clear-to-close, reserve expectations, appraisal turn times, and how they handle unique property types.
Cary property factors to consider
- Custom homes and acreage. Unique layouts, extensive renovations, or larger lots can make valuation more complex and may extend appraisal timelines.
- HOA and condos. High-end communities and condo buildings can require extra eligibility checks and documentation.
- Taxes and insurance. Wake County property taxes and homeowners insurance feed your monthly payment and reserve requirements. Review records and resources through Wake County’s official site.
Preapproval checklist
- Current government ID
- Last 2 pay stubs if employed
- Last 2 years of W-2s
- Last 2 years of federal tax returns
- 2 to 3 months of bank and brokerage statements for all accounts
- Retirement account statements if used for reserves or down payment
- Documentation for rental income or other income sources if used to qualify
- Proof of additional assets as applicable
- Documentation and signed gift letter for any large deposits or transfers
- List of liabilities with monthly payments
- Employer contact information for verification if requested
Offer and contract checklist
- Strong preapproval letter, ideally underwritten
- Contingency dates aligned with appraisal and underwriting timelines
- Appraisal flexibility for higher-value properties, with room for a second appraisal if needed
- Upfront communication with lender about HOA or condo requirements
Final thoughts for Cary buyers
If your budget sits in the $900k to $1.5M range, plan for jumbo standards early. Build a clean document file, compare at least two lender types, and allow enough time for appraisal and underwriting. With the right preparation, you can present a confident offer and move through closing with fewer surprises.
If you want local guidance on neighborhoods, timing, and strategies that win in Cary’s higher-end market, reach out to Courtney Whalen. We are here to help you move with clarity and confidence.
FAQs
What is a jumbo loan in Cary and Wake County?
- A jumbo is any mortgage that exceeds the FHFA conforming loan limit for Wake County, which you can verify on the FHFA conforming loan limits page.
How much down payment do I need for a jumbo in Cary?
- Many lenders require 10 to 20 percent down for jumbos, though some strong profiles may see higher LTV options with stricter terms.
Are jumbo mortgage rates always higher than conforming?
- Jumbos are often priced slightly higher, but the spread varies by lender, borrower profile, and market conditions, and some portfolio lenders can be very competitive.
How long does a jumbo preapproval and closing take in Cary?
- Preapproval can be completed in days if documents are ready, while full underwriting and closing can take longer due to appraisal and verification steps.
Do I need cash reserves after closing on a jumbo?
- Many programs require 6 to 12 months of PITI reserves, with exact amounts tied to credit, LTV, occupancy, and lender guidelines.
Can I use FHA or VA for a $900k Cary home?
- FHA and VA loan limits are generally below typical jumbo price points, so these programs usually do not cover loan amounts in the $900k range.
