Overview: A jumbo loan is a mortgage product designed for high-value properties that exceed the conforming loan limits set by Fannie Mae and Freddie Mac (which are typically around $726,200 but vary by location).

Loan Amounts: Can range from $1 million to $10 million or more, depending on the lender and borrower qualifications.

Benefits: Competitive interest rates, flexible terms (fixed or adjustable), and available for both primary residences and investment properties.

Best For: Buyers of luxury homes in high-cost markets where property values exceed conventional loan limits.

Overview: Portfolio loans are offered by banks or private lenders that keep the loan in-house instead of selling it to secondary markets (like Fannie Mae or Freddie Mac). This allows lenders more flexibility with terms and qualifying criteria.

Loan Amounts: Typically $1 million and up, depending on the lender and the value of the property.

Benefits: More flexibility in terms of borrower credit profiles, down payment requirements, and loan structures. They are often used for high-net-worth individuals or unique properties that may not meet standard underwriting guidelines.

Best For: Luxury properties with non-conventional borrower profiles or unique characteristics that might not fit traditional loan guidelines.

Overview: Asset-based loans use the borrower’s assets (such as investment portfolios, other properties, or liquid accounts) as collateral to qualify for a mortgage. This type of loan is particularly useful for high-net-worth individuals who might have substantial assets but inconsistent income.

Loan Amounts: Generally starts at $1 million and can go significantly higher.

Benefits: Approval is based on the value of the assets rather than traditional income, making it ideal for borrowers with fluctuating income streams or those looking to leverage their investments without liquidating them.

Best For: Wealthy borrowers with significant non-cash assets who want to purchase a luxury home without tapping into liquid reserves.