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Can You Get a Jumbo Loan with Damaged Credit?

Read Time: 3 Minutes Date Published: July 09, 2025

A credit mishap can make mortgage approval feel out of reach—especially for Jumbo loans with stricter requirements. Jumbo loans are loans that exceed the maximum loan limit set annually by the Federal Housing Finance Agency. Damaged credit can be a setback to your homeownership goals, but it’s still possible to qualify for a loan—even a Jumbo loan.

If imperfect credit has you searching for an alternative to a conventional mortgage, you may want to explore your non-qualified mortgage (non-QM) options.

What Is a Non-QM Loan?

Non-QM loans offer flexible alternatives to traditional mortgages. They’re designed for borrowers who don’t meet conventional criteria, such as borrowers with less traditional sources of income or borrowers who have experienced credit events. Since non-QM loans aren’t backed by government agencies, lenders can take a more flexible approach with their qualifying criteria.

Newrez carries a suite of non-QM loans to meet a variety of borrower needs, including loans for real estate investors, self-employed individuals and more. If you’re hoping to secure a Jumbo loan after having experienced a credit event, you may be interested in our SmartEdge product.

SmartEdge: Newrez’s Solution for Borrowers with Imperfect Credit

SmartEdge was built for borrowers who fall outside of traditional Jumbo loan guidelines. It features:

  • Loan amounts up to $3.5 million
  • Interest-only financing
  • Alternative properties, like non-warrantable condos and condotels
  • Flexible underwriting criteria

At Newrez, we understand that life happens, and derogatory credit events are not uncommon among homebuyers. We designed SmartEdge to open more doors for borrowers that are struggling to qualify for a conventional home loan.

Who SmartEdge May Help:

Because SmartEdge enables borrowers to qualify with alternate criteria as well as offering flexibility to those with imperfect credit, this product could be ideal for:

  • Borrowers with credit events such as bankruptcy, short sale or foreclosure—one credit event per 2-year period
  • High-asset individuals with low reportable income
  • Retirees, entrepreneurs, trust beneficiaries, retired professional athletes
  • Former business owners who sold their business at a profit

Find Out If You Qualify

Everyone deserves a fair shot at achieving their homeownership dreams. Reach out to a Newrez mortgage expert today and find out if a SmartEdge loan is right for you.

 

This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.

Learn more in our other educational series.

We’ve assembled a treasure trove of jargon-free information to demystify home-financing and arm you with valuable insights and actionable options.

Why Newrez?

Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.

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