Eyeing a ski-in, mountain-view escape in Park City and wondering how to finance it smartly? In our market, jumbo financing is common and the rules feel different than a typical mortgage. You want clarity on what lenders look for, how second homes and rentals are treated, and how to keep your offer competitive. This guide breaks down jumbo loan basics, Park City nuances, and the steps to qualify with confidence. Let’s dive in.
What counts as a jumbo in Park City
A jumbo loan is any mortgage that exceeds your county’s conforming loan limit. The Federal Housing Finance Agency updates these limits each year. For 2024, the national baseline single-unit limit is $766,550 and high-cost county ceilings are about $1,149,825. Summit County often qualifies as high cost due to luxury pricing, which means many Park City homes fall into jumbo territory. Always verify the current Summit County limit for the year you plan to purchase.
Government-backed options like FHA, VA, and USDA typically have lower limits and are less common for luxury purchases. Most Park City luxury buyers use conventional jumbo, portfolio, or non-QM products tailored to higher loan amounts and complex profiles.
How lenders underwrite jumbo loans
Credit, DTI, and down payment
Jumbo lenders expect stronger files than conforming loans. For best pricing, many target credit scores in the mid 700s. Some lenders will consider 700-plus, and select programs allow scores in the high 600s at higher rates or with larger reserves.
Debt-to-income ratios are usually capped around 43 to 50 percent, depending on compensating factors such as strong assets and reserves. Down payment norms vary by occupancy:
- Primary residence: Up to 80 percent loan-to-value is common.
- Second home: Often up to 80 percent LTV, with some lenders asking for more down on larger loans.
- Investment property: Expect 70 to 75 percent LTV, which means 25 to 30 percent down.
Private mortgage insurance options are limited above conforming limits, so buyers often use larger down payments or a second mortgage structure when available.
Documentation options
Full documentation is preferred. That means recent tax returns, W-2s, and bank statements. For self-employed buyers or those with significant assets but limited taxable income, lenders may offer bank-statement or asset-depletion programs. These alternatives can work well but often come with higher rates, tighter reserve requirements, or additional documentation.
Reserves matter more with jumbos
Reserve requirements are a key difference with jumbo loans and are often the make-or-break factor:
- Primary residences: Many programs require about 6 months of PITI on deposit.
- Second homes: Often 6 to 12 months of PITI.
- Investment properties: Commonly 6 to 24 months of PITI depending on LTV, loan size, and whether rental income is used to qualify.
Lenders verify liquid assets, look for seasoning of funds, and ask for explanations on large deposits.
Using rental income to qualify
Long-term rental income can be counted when it is stable and well documented. Short-term rental income is more complex. Most lenders want to see 12 to 24 months of tax-reported STR income or strong, underwriter-accepted history from management statements and bookings. Some lenders discount or decline STR income if local rules are restrictive or there is insufficient history.
Park City property specifics lenders weigh
Occupancy classification
How you plan to use the property shapes pricing and terms:
- Primary residence comes with the most flexible terms.
- Second home usually brings slightly higher pricing and higher reserve expectations.
- Investment property has the strictest rules, highest reserves, and tightest documentation.
Lenders review intended occupancy and actual use closely. It is important to be accurate about how you will use the home.
Short-term rentals and local rules
Park City and Summit County have licensing, permitting, and zoning or HOA rules for short-term rentals. Lenders often require proof of compliance and tax remittance before they will underwrite based on STR income. If regulations recently changed or a property faces restrictions, some lenders will not count projected nightly income or may require longer income history.
Before relying on rental income to qualify, confirm the current municipal and county rules and any HOA policies that affect nightly rentals.
Condos and warrantability
Ski-area condos with a high share of investors or nightly rentals can be labeled non-warrantable under Fannie and Freddie standards. If a project is non-warrantable due to litigation, budget issues, or high delinquency rates, you may need a portfolio or specialty jumbo lender that can hold the loan on its own balance sheet. Expect stricter underwriting and potentially higher pricing.
Unique luxury features and appraisals
Ski-in or ski-out access, extensive amenities, custom timber and stone work, acreage, and accessory dwelling units can complicate valuation. Lenders often require appraisers who know high-value and ski-market properties. Seasonal comparables and amenity premiums are common and can extend timelines. Specialized inspections may be required for steep sites, snow load, wildfire exposure, or winter access.
Insurance and hazard considerations
In mountain settings, insurance is a gating factor. Lenders will require proof of adequate homeowner insurance. In some locations, you may also need wildfire endorsements, umbrella liability coverage, or flood policies. Availability and cost can influence what you qualify for and whether a loan is feasible on a remote or high-risk property.
Who lends and how jumbo rates are priced
You will find several lender types active in Park City:
- National retail and correspondent lenders often price competitively on standard jumbos but may have stricter overlays for unique ski properties.
- Regional banks and credit unions sometimes offer flexible portfolio products and local-market expertise.
- Portfolio lenders and community banks keep loans in-house and can consider exceptions for non-warrantable condos, unusual income, or large reserve cases.
- Mortgage brokers can shop multiple jumbo options, including non-QM, bank-statement, and portfolio programs.
Pricing varies with your profile and loan features. Credit score, LTV, DTI, and reserves all matter. Larger loan sizes, condos, and investment properties can carry surcharges. Full-documentation loans usually get the best rates. Adjustable-rate or interest-only jumbos may price differently than a 30-year fixed. Jumbo rates can be close to conforming rates in some markets and diverge during market stress.
Timeline and contract strategy in Park City
Appraisals for luxury ski properties can take longer because qualified appraisers are in high demand and the right comparables may be seasonal. Condo reviews and HOA document checks can add time. Portfolio lenders may have loan committee reviews that add steps.
Allow extra time in your contract for appraisal and lender conditions. In competitive settings where cash offers are common, a strong jumbo pre-approval from a lender who understands Park City can help your offer stand out.
Real-world scenarios
- Primary home, $2 million purchase with 20 percent down: A conventional jumbo may work well with a 700-plus credit score, DTI under 43 to 50 percent, about 6 months of PITI reserves, and a full appraisal by an experienced luxury-market appraiser.
- Second home, $3 million purchase with 20 percent down: Expect higher pricing than a primary home and around 12 months of PITI reserves. If it is a condo with heavy STR activity, the project could be non-warrantable and require a portfolio lender.
- Investment property used for nightly rentals, $2 million purchase with 30 percent down: Many lenders require 6 to 24 months of PITI reserves. Counting STR income typically requires 12 to 24 months of tax-documented history or strong management statements and booking records. Some lenders may decline STR-dependent financing where local rules are restrictive.
- Self-employed buyer with strong assets but low taxable income: Bank-statement or asset-depletion programs can help. Expect higher rates and larger reserves compared with full-doc jumbo options.
What to ask your lender before you offer
- What is the current conforming limit for Summit County and therefore the jumbo threshold for this year?
- Will you count short-term rental income, and what documentation do you require to do so?
- Do you have experience underwriting Park City or ski properties, and do you require a specific appraiser type?
- What are your minimum credit score, maximum DTI, and required reserves for my occupancy and loan amount?
- Can you finance non-warrantable condos or homes with ADUs, guest houses, or ski easements?
- Do you offer portfolio or non-QM programs such as bank-statement or asset-depletion options?
- What insurance coverages or endorsements will you require at closing?
Your jumbo financing document checklist
- Two years of personal federal tax returns and, if self-employed, two years of business returns
- W-2s and recent pay stubs if employed
- Sixty days of bank statements plus statements for investment and brokerage accounts
- A list of liquid assets with statements showing seasoning
- Written explanations and documentation for large deposits
- HOA documents and condo budget or meeting minutes if applicable
- Lease or rental history and tax returns if you plan to use rental income to qualify
- Insurance quotes or a binder for required hazard, flood, or wildfire coverage
Next steps
Jumbo loans in Park City reward preparation. When you understand local rules, reserve expectations, and how your property type is viewed by lenders, you can move quickly and negotiate with confidence. A clear plan also protects your timeline when demand spikes or inventory is tight.
If you are considering a luxury purchase, second home, or an STR-focused investment, let’s map out your path. The Hudgens | Harrison Real Estate Team brings hospitality-grade service, Park City expertise, and a strategic advisory approach for buyers and investors. Schedule a concierge consultation and we will help you align property selection, underwriting expectations, and contract strategy so you close smoothly.
FAQs
What is a jumbo loan in Summit County, Utah?
- A jumbo loan is any mortgage above the county’s conforming loan limit, which the FHFA sets annually. Summit County often uses the high-cost ceiling, so many Park City homes require jumbo financing.
How much down payment is typical for a Park City second home jumbo?
- Second homes often max at 80 percent LTV, so plan for around 20 percent down, with some lenders asking for more on larger loans or unique properties.
Can I use Airbnb or VRBO income to qualify for a jumbo mortgage in Park City?
- Many lenders require 12 to 24 months of tax-reported short-term rental income or strong documented performance before counting it, and some will discount it due to local rules.
What makes a Park City condo non-warrantable and why does it matter?
- High investor or STR concentration, litigation, or HOA financial issues can make a project non-warrantable, which often requires a portfolio or specialty jumbo lender at different pricing.
How many months of reserves do jumbo lenders want for an investment property?
- Expect 6 to 24 months of PITI on deposit, depending on your LTV, loan amount, and how much rental income you are using to qualify.
How long do jumbo appraisals take for ski-in or ski-out homes?
- Timelines vary, but luxury ski properties often take longer due to limited comparable sales and the need for experienced appraisers. Build extra time into your contract.
