Shopping for a riverfront home in Hudson or a custom build on acreage and wondering how to finance it? You are not alone. Many St. Croix Valley buyers explore jumbo loans when home prices rise above standard limits. In this guide, you will learn how jumbo loans work, what lenders expect, and how to prepare in our local market so you can move forward with confidence. Let’s dive in.
Jumbo loan basics
A jumbo loan is a mortgage that is larger than the conforming loan limit for your county. Conforming loans can be purchased by Fannie Mae or Freddie Mac. Jumbo loans cannot, so lenders set tighter rules and price them differently.
You can confirm the current conforming limits by checking the Federal Housing Finance Agency. Most Wisconsin counties, including St. Croix County, follow the baseline limit each year. Always verify the exact number for the year you plan to buy because limits can change. You can find the latest limits on the FHFA website.
How jumbo differs from conforming
- Underwriting: Lenders often require stronger credit, larger down payments, and more assets in reserves.
- Documentation: Expect full income and asset documentation. Large deposits and nontraditional income usually need extra paperwork.
- Pricing: Rates can be higher or competitive compared to conforming loans. It depends on market conditions and the lender’s portfolio strategy.
Hudson market: When jumbos fit
In Hudson and the broader St. Croix Valley, jumbo loans often come into play for higher-priced riverfront homes, new custom builds, and properties on larger lots. Buyers relocating from the Twin Cities sometimes bring bigger budgets and target premium listings that exceed conforming limits.
Appraisals on unique or luxury properties can be complex. River views, historic renovations, and architectural uniqueness can limit comparable sales. This does not stop deals, but it can add steps and time. Planning for that early helps you protect your timeline.
Check your loan limit fast
Your first step is confirming whether your target mortgage amount will be considered jumbo.
- Conforming limits: Review the most current county-specific limits on the FHFA website.
- FHA loan limits: FHA typically caps out well below jumbo sizes. If you want to compare FHA as an option, verify St. Croix County limits on HUD’s FHA Mortgage Limits page.
- VA guidance: VA loans follow entitlement rules rather than a single cap. If you plan to use VA benefits at higher loan amounts, start with the VA Home Loan program overview.
- Mortgage basics: If you are new to mortgages or want shopping tips, the Consumer Financial Protection Bureau has helpful guides.
What lenders look for
Jumbo underwriting is designed to manage higher risk on larger loans. While every lender is different, you will often see the following themes.
Credit scores
A higher score usually gets stronger pricing and smoother approval. Many lenders look for scores around 700 or higher, and some prefer 720+ for best terms. That said, minimums and pricing tiers vary by lender and by product.
Down payment and LTV
Many jumbo programs top out around 80 percent loan-to-value for primary residences. That means a 20 percent down payment in many cases. Some lenders allow higher LTVs, often with pricing trade-offs and stronger profiles.
Reserves and DTI
Expect lenders to ask for several months of mortgage payments in reserves. Bigger loan sizes can mean larger reserve requirements. Debt-to-income ratios may be capped near common standards, but many lenders prefer lower DTIs for top pricing.
Documentation and appraisal
Full documentation is the norm. That includes recent tax returns, W-2s or 1099s, and detailed asset statements. Unique or luxury homes may require an in-depth appraisal. In some cases, lenders ask for a second opinion to validate value.
Jumbo loan options
Fixed-rate
Fixed-rate jumbos offer payment stability over 15, 20, or 30 years. These are popular if you plan to hold the home long term and want predictable costs.
Adjustable-rate (ARM)
ARMs such as 5/1, 7/1, or 10/1 can start with lower initial rates. They carry future rate risk after the fixed period ends. Consider how long you plan to stay in the home and your risk tolerance.
Portfolio and non-QM
Some banks keep jumbo loans on their own books. These portfolio loans can be more flexible on income or asset profiles. For complex income, non-qualified mortgage products may help, often at higher rates or with stricter reserves. Ask the lender to explain the trade-offs in plain terms.
Choosing a lender locally
Many Hudson buyers compare quotes from national lenders, Wisconsin banks, Twin Cities mortgage companies, and local credit unions. If you shop across the river, confirm the lender is licensed in Wisconsin and ask about any state-specific overlays. Compare total costs and service timelines, not just the headline rate.
Steps to get ready
Use this quick checklist to prepare before you tour homes.
- Verify whether your target mortgage amount is above the conforming limit for St. Croix County on the FHFA website.
- Pull your credit and fix issues early. Pay down balances and resolve any late payments if possible.
- Gather income documents: two years of tax returns, recent W-2s or 1099s, and year-to-date pay information.
- Compile asset statements for all accounts. Be ready to explain large deposits.
- Ask lenders how many months of reserves they require based on your price point and property type.
- Discuss appraisal timelines for riverfront, acreage, or custom homes.
- Get at least three quotes. Compare rates, points, lender fees, and total cash to close.
- If you plan to use VA benefits above typical conforming limits, start with the VA Home Loan program overview and confirm lender overlays.
Tips for sellers when buyers use jumbo
- Provide thorough documentation. Share permits and upgrade details so appraisers can verify value.
- Anticipate timing needs. Jumbo underwriting and complex appraisals can add days. Build that into your timeline.
- Stay flexible with appraisal contingencies. Unique features may require more comps or a second look.
- Keep communication tight. Clear updates on repairs, access, and scheduling help both sides close on time.
Smart questions to ask lenders
- What loan amount triggers a jumbo in St. Croix County today?
- What minimum credit score do you require and what score unlocks best pricing?
- What maximum LTV do you allow for primary homes, second homes, and investments?
- How many months of reserves do you require at my price point?
- What documentation do you need for self-employed income or large asset accounts?
- Do you offer portfolio or non-QM jumbo products and how do the rates and fees compare?
- How do you handle appraisals for riverfront or unique properties?
- What are your rate lock options and any float-down policies?
Costs, rates, and refinancing
Jumbo rates move with market conditions and a lender’s appetite for holding large loans. Sometimes they are higher than conforming loans and sometimes they are comparable. The best way to know is to collect live quotes on the same day from multiple lenders.
Closing costs can be higher for jumbos. Ask for a written fee detail and confirm appraisal scope and costs. For refinancing, expect tighter rules for cash-out and equity minimums. Rate-and-term refinances can be competitive if your profile is strong.
Local resources to know
- Track conforming limits on the FHFA website.
- Compare FHA county limits on HUD’s FHA Mortgage Limits page.
- Review VA program guidance at the VA Home Loan program overview.
- Get mortgage shopping tips from the Consumer Financial Protection Bureau.
- For county property records and assessor info, visit St. Croix County’s official site.
- For statewide market trends and reports, see the Wisconsin REALTORS Association.
Work with a calm local guide
If you are targeting a riverfront view in North Hudson, a custom build near Troy, or a move-up home close to downtown, planning your financing early is the smartest step. A clear jumbo strategy makes your offer stronger and your timeline smoother. Our team pairs luxury-caliber marketing with organized, step-by-step guidance so you can buy or sell with confidence.
Ready to map out a jumbo-friendly plan or prep your home for market? Connect with Unknown Company. If you are selling, you can also request your complimentary home valuation to understand your price position before you list.
FAQs
What is a jumbo loan in St. Croix County?
- A jumbo loan is any mortgage amount above the conforming limit for the county. You can confirm the current limit on the FHFA website.
How much down do I need for a jumbo in Hudson?
- Many lenders cap jumbo loans around 80 percent loan-to-value for primary residences. Some offer higher LTVs with stronger profiles and pricing trade-offs.
Do jumbo loans have higher rates than conventional loans?
- It depends on market conditions and the lender. Jumbo rates can be higher or competitive, so you should collect same-day quotes from multiple lenders.
Can I use VA benefits for a jumbo mortgage in Wisconsin?
- Possibly. VA uses entitlement rather than a single cap, and many lenders apply overlays for higher loan amounts. Review the VA Home Loan program overview.
How long does a jumbo loan take to close in Hudson?
- Timelines can be similar to conventional loans, but complex appraisals and documentation may add days. Build in extra time for riverfront or unique properties.
What makes appraisal tricky for riverfront jumbo homes?
- Unique features and limited comparable sales can make valuation more complex. Lenders may request additional data or a second opinion to confirm value.
