Jumbo Loans
Loan Programs
Get StartedBuying a higher-priced home, or a home in an expensive market, often means borrowing more than a standard loan allows. That's where a jumbo loan comes in. Here's a plain-English look at how they work and what lenders expect.
What Makes a Loan Jumbo?
Each year the Federal Housing Finance Agency sets the conforming loan limit, the largest loan Fannie Mae and Freddie Mac will buy. For a one-unit home, the baseline limit in most of the country is $832,750, and it can be higher in high-cost counties (as of 2026, subject to change).
A loan above your county's conforming limit is called a jumbo, or non-conforming, loan. Because Fannie Mae and Freddie Mac can't buy it, the lender or a private investor takes on more risk. That's why jumbo guidelines are usually stricter.
Note that the limit applies to the loan amount, not the price. A $1,000,000 home with a large down payment might still fit under the conforming limit.
Conforming limits usually change every January based on home price trends. If your loan amount is close to the limit, it's worth checking the new figure before you finalize your plans. Sometimes a small increase in your down payment can move you from a jumbo loan to a conforming loan with simpler guidelines.
Qualification
Every jumbo lender sets its own rules, but most look for:
- Strong credit. Often a score of 700 or higher, with the best terms at 740+.
- Moderate debt. A debt-to-income ratio of about 43% or less is common.
- Cash reserves. Many lenders want 6 to 12 months of mortgage payments in savings or investments after closing.
- Thorough income documentation. Expect to provide two years of tax returns, and possibly more for self-employed borrowers.
- Sometimes two appraisals, especially for very large loans.
Self-employed borrowers and business owners can absolutely qualify for jumbo loans, but expect a closer look at business tax returns, profit-and-loss statements and the stability of your income. Some lenders also offer asset-based programs that consider large investment balances as a source of income. Planning ahead and organizing your documents early will make underwriting go much more smoothly.
Down Payment
Jumbo down payments usually start between 10% and 20%, and some programs require 25% or more for very large loans, second homes or investment properties (as of 2026, subject to change). Many jumbo loans don't charge monthly mortgage insurance even with less than 20% down, though pricing may be adjusted.
Some buyers use a "piggyback" strategy: a conforming first mortgage plus a second mortgage or home equity line to cover the rest. This can sometimes lower the overall cost. We'll compare options side by side.
Your down payment must come from documented sources. Large deposits will need a paper trail, and gift funds may have limits on jumbo programs. If you're selling another home to fund your purchase, we can look at bridge options to help you buy before you sell.
Pros and Cons
| Pros | Cons |
|---|---|
| Finance a higher-priced home with one loan | Stricter credit and income standards |
| Fixed and adjustable options available | Larger down payment often needed |
| Often no monthly mortgage insurance | Significant cash reserves required |
| Can be used for primary, second or investment homes | Closing costs are higher in dollar terms |
| Pricing is often competitive for strong borrowers | More paperwork and sometimes a second appraisal |
A jumbo loan is a big financial decision. As a Certified Mortgage Planning Specialist, I'll look at how it fits with your investments, taxes and long-term goals, not just whether you qualify.