A jumbo loan is a mortgage that exceeds the conforming loan limits set annually by the Federal Housing Finance Agency. Because these loans are too large to be purchased by Fannie Mae or Freddie Mac, lenders take on more risk and typically apply stricter underwriting standards.

Down Payment

Jumbo loans generally require a larger down payment than conventional financing, often in the range of 10-20% or more depending on the lender and loan amount.

Credit & Reserves

Expect higher credit score requirements, a lower maximum debt-to-income ratio, and lenders often want to see several months of cash reserves on hand after closing.

Interest Rates

Rates on jumbo loans can be comparable to conforming loans, and sometimes even lower, though this varies by lender and market conditions.

Loan Limits

A loan is generally considered “jumbo” once it exceeds the conforming loan limit set annually by the Federal Housing Finance Agency, a limit that adjusts each year and can be higher in certain high-cost counties. Your lender can confirm the current limit for your area.

Who It’s Best For

• Buyers purchasing above the conforming loan limit for the area
• Buyers with strong credit and significant cash reserves
• Buyers of luxury or waterfront properties in higher-priced markets

How to Get Started

1. Get pre-approved so your lender can confirm the jumbo threshold and terms available to you.
2. Work with your agent to find the right property.
3. Gather documentation early — jumbo underwriting often requires more paperwork and reserves.
4. Lock in your interest rate once you are under contract.
5. Complete underwriting and close on your home!

Ready to talk through your options? Explore all of our financing resources, or reach out to our team — we’re happy to help you figure out which loan program fits your goals.