Shopping in Madison Park and noticing list prices that sit well above “typical” Seattle numbers? If you are eyeing a lakefront home or a remodeled classic near the park, there is a good chance you will need jumbo financing. You want a clear picture of how these loans work, what lenders expect, and how to set up your offer to win. This guide breaks it down in plain English so you can shop with confidence. Let’s dive in.

What is a jumbo in King County

A jumbo loan is simply a mortgage amount that exceeds the conforming loan limit for the county and year. The Federal Housing Finance Agency sets those limits annually, so you should verify the current figure for King County on the FHFA’s Conforming Loan Limits page. You can check it quickly using the FHFA’s interactive map, which shows the limit by county.

Because many Madison Park and Lake Washington homes often list above the conforming threshold, you may need a jumbo or a blended structure, such as a first-lien jumbo paired with a small second. Your lender will size options around your down payment, reserves, and goals.

• Check current limits: review the FHFA’s Conforming Loan Limits Map to confirm whether your target price requires a jumbo.

Verify King County’s current conforming limit on the FHFA Conforming Loan Limits Map.

Jumbo vs. conforming differences

Jumbo loans and conforming loans are both conventional mortgages, but a few things differ.

• Rates and pricing. Jumbo rates change with market conditions. Sometimes they are slightly higher than conforming, other times similar or even lower depending on the lender and investor appetite. The only way to know is to get quotes from more than one Seattle lender.
• Down payment and mortgage insurance. Many jumbo programs expect larger down payments to avoid private mortgage insurance. For well-qualified primary residences, 10 to 20 percent down is common, with second homes and investments often needing 20 to 30 percent or more.
• Product flexibility. Conforming loans follow standardized rules. Jumbos are usually held by banks or private investors, so you will see more lender-specific options, like interest-only or bank-statement programs, each with its own rules.
• Appraisals and property eligibility. High-value homes, condos, unique architecture, and waterfront properties can trigger more detailed appraisals or additional reviews. Expect longer turn times and more questions about comps.

Underwriting basics for jumbos

Jumbo underwriting is more conservative than standard conforming in a few key areas. Expect detailed documentation and a closer look at your overall profile.

Credit

• Strong profiles often show 700 to 760-plus credit scores, with many lenders preferring 720-plus for best pricing.
• Major credit events typically need to be seasoned for several years, depending on the lender.

Reserves

• Lenders commonly require 6 to 12 months of reserves for a primary residence, measured as principal, interest, taxes, and insurance.
• Second homes or investment properties may call for 12 or more months. Retirement and investment accounts can often count, subject to each lender’s rules.

Down payment and LTV

• For primary homes, 10 to 20 percent down is typical for well-qualified borrowers. Lower LTVs can help with pricing and approval.
• For second homes and investments, plan for 20 to 30 percent or more.

Debt-to-income ratio

• Many jumbo programs cap total DTI around 43 to 50 percent. Higher reserves and lower LTVs can help you qualify at the upper end of that range.

Income and documentation

• Standard documents include recent paystubs, W-2s, tax returns, and employer verification.
• Self-employed buyers often need two years of returns and a profit and loss statement. Some lenders offer bank-statement jumbos, which come with different pricing and requirements.

For a clear overview of common mortgage documents, review the Consumer Financial Protection Bureau’s guidance on what you may need to provide.

See the CFPB’s overview of mortgage documents and the application process.

Assets and source of funds

• Expect to provide 2 to 3 months of statements for bank, brokerage, and retirement accounts. Large deposits must be sourced and documented.
• Gift funds are often allowed but must follow the program’s rules with a gift letter and evidence of transfer.

Appraisal and property review

• High-value homes may require additional valuation checks and longer timelines.
• Condo projects can face stricter reviews for owner-occupancy, budget health, and special assessments.

Madison Park considerations to plan for

Madison Park and nearby Lake Washington neighborhoods have unique property features that can affect jumbo approval.

• Waterfront and flood risk. Lenders may require flood insurance for homes in mapped floodplains. Review FEMA maps and King County’s flood resources, and budget for premiums in your DTI.
• Shoreline structures. Seawall condition, shoreline permits, or geotechnical items can draw extra underwriter attention.
• Condo project health. Some high-end condo projects have rental limits or special assessments. Your lender may request HOA documents early.
• Property taxes and assessments. Verify current taxes and any special assessments with King County before you finalize your offer.
• Closing costs and REET. Washington charges Real Estate Excise Tax on sales. Sellers commonly pay REET, but buyers should understand the line items that affect cash to close.

Research a property’s taxes and parcel data using King County’s Assessor and GIS tools.

Learn how Washington’s Real Estate Excise Tax works on the Department of Revenue site.

Review King County’s flood and hazard mapping resources before you write an offer.

Your Madison Park jumbo checklist

Use this quick prep list before you tour seriously or submit an offer.

Get fully pre-underwritten

• Aim for a pre-underwritten or fully documented pre-approval, not just a quick pre-qual. Ask your lender for written conditional approval after an underwriter reviews income, assets, and credit.

Gather core documents

• 2 to 3 months of bank and investment statements
• 2 years of tax returns and W-2s, plus business returns and a P&L if self-employed
• Recent paystubs and, if applicable, an employment verification letter
• Documentation for large deposits or asset transfers
• Statements for retirement or stock accounts used for reserves
• Photo ID and Social Security information

Align your offer strategy

• Appraisal planning. Discuss potential appraisal gaps and whether you will include appraisal-gap language or escalation terms. Confirm that reserves can support any shortfall.
• Condo or waterfront review. Share HOA documents and any shoreline reports early so the lender can flag issues.
• Earnest money. Luxury sellers may expect a higher earnest deposit. Make sure funds are seasoned and documented.
• Rate locks. Coordinate lock timing with your closing date, and ask about any float-down options if rates move.

Set realistic timelines

• Appraisals for high-value or unique homes can take longer than standard assignments. Budget 7 to 14 days or more.
• Underwriting for a jumbo file often requires 2 to 4 weeks to reach clear-to-close once the appraisal is in.
• Plan for a 30 to 45 day closing. Faster is possible with early documentation and active coordination.

Next steps

You do not have to navigate jumbo financing alone. With senior-level guidance and a local network inside Coldwell Banker Bain, you can line up the right lender, prepare airtight documentation, and shape an offer that reflects Madison Park realities. If you are considering a move, let’s talk through your goals and map a plan that fits your price range and timeline.

Reach out to Terry McMahan to start your Madison Park jumbo strategy today.

FAQs

How do I know if I need a jumbo loan for a Madison Park home?

• Compare your target loan amount to the current FHFA conforming limit for King County, and if it exceeds the limit, you will need a jumbo.

What down payment is typical for a jumbo in Seattle?

• For well-qualified primary homes, 10 to 20 percent is common, while second homes and investments often require 20 to 30 percent or more.

Are jumbo mortgage rates always higher than conforming?

• Not always, since jumbo pricing depends on market conditions and lender appetite, so you should get quotes from multiple lenders.

What documents should I gather before making an offer in Madison Park?

• Prepare recent paystubs, two years of tax returns, 2 to 3 months of bank and investment statements, proof of large deposits, and identification.

Are Madison Park condos harder to finance with a jumbo?

• Sometimes, because lenders may apply stricter condo project reviews, so request HOA documents early and have your lender review them.

How long does a jumbo loan take to close in Seattle?

• Many jumbo purchases close in 30 to 45 days, depending on appraisal timing, condo or property reviews, and how quickly documents are delivered.