Jumbo Loans
Financing above standard conforming loan limits.
Overview
Jumbo loans finance amounts that exceed the conforming loan limits set annually by the Federal Housing Finance Agency for the county where the home is located. Because they aren't backed by Fannie Mae or Freddie Mac, jumbo loans typically carry somewhat stricter underwriting — but they let buyers finance higher-value homes in a single loan rather than piecing together multiple loans.
Who It’s For & What You’ll Need
- A larger down payment than typical conforming loans, often in the range of 10–20% or more depending on the lender
- A higher credit score threshold than many conforming loan programs
- Larger cash reserves after closing, often several months of payments
- Full income and asset documentation in most cases
- An appraisal supporting the higher loan amount
Benefits
- Finance a higher-value home with a single loan instead of a piggyback or split-loan structure
- Competitive rates available to well-qualified borrowers despite the loan’s non-conforming size
- Available for primary residences, second homes, and, with some lenders, investment properties
- Fixed and adjustable-rate options, similar to conforming loans
Common Scenarios
- A buyer purchasing a home priced above the local conforming loan limit for their county.
- A move-up buyer in a higher-cost coastal market financing above standard limits.
- A borrower with strong reserves and credit consolidating what would otherwise be two loans into one jumbo mortgage.
Frequently Asked Questions
What exactly is the conforming loan limit?
It’s the maximum loan amount Fannie Mae and Freddie Mac will purchase or guarantee, set annually by the Federal Housing Finance Agency and adjusted by county based on local home values. Any loan above that limit is considered jumbo.
Do jumbo loans always have higher rates than conforming loans?
Not necessarily — pricing depends on the lender, market conditions, and your specific qualifications. Jumbo rates have, at various points, been comparable to or even below conforming rates.
How much down payment is typical for a jumbo loan?
It varies by lender and loan amount, but jumbo programs commonly ask for a larger down payment than standard conforming loans — often in the double digits.
Can I use a jumbo loan for an investment property?
Some lenders offer jumbo financing for second homes and investment properties, typically with stricter down payment and reserve requirements than for a primary residence.
Related Calculators
Run your own numbers before you apply:
Ready to Move Forward with Jumbo Loans?
Start your application, or talk it through with a loan officer first — whichever fits where you are.