What is a Jumbo Loan?

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A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2026, the standard conforming loan limit is $832,750, and it goes up to $1,249,125 in designated high-cost areas. If you need to borrow more than that, you need a jumbo loan.

Jumbo loans are common in markets where home prices exceed the conforming limit, and they are available for primary residences, second homes, and investment properties. I have access to multiple jumbo loan products with varying guidelines, so I can match you with the best option for your specific situation.

Who Needs a Jumbo Loan?

Jumbo loans are ideal for borrowers who are:

• Purchasing a home priced above the conforming loan limit for their area
• Refinancing an existing mortgage with a balance above the conforming limit
• Buying a luxury or high-value property
• Purchasing or refinancing in a high-cost real estate market
• Investing in higher-value rental properties

Jumbo Loan Guidelines

Jumbo loan requirements vary by product, but here are the general guidelines across the programs I have access to:

• Loan Amounts: Starting at $832,751 (or above the high-cost limit in your county). Maximum loan amounts can go up to $3 million or higher depending on the program.
• Credit Scores: Typically range from 680 to 740+ depending on the program, loan amount, and LTV. Higher loan amounts generally require higher credit scores.
• Down Payment: Typically 10-25% depending on the loan amount, property type, and program. Some programs allow as little as 10% down on primary residences.
• Debt-to-Income Ratio: Generally up to 43-45%, though some programs allow higher with compensating factors.
• Reserves: Typically 6-18 months of mortgage payments in liquid assets, depending on loan amount and number of financed properties.
• Documentation: Full documentation programs are standard. Alternative documentation options (such as bank statements for self-employed borrowers) are available on select jumbo programs.
• Mortgage Insurance: Most jumbo programs do not require private mortgage insurance (PMI), even at higher LTVs.

Jumbo Loan Options

Jumbo loans are available in several configurations to fit different needs:

• Fixed Rate: 15-year, 20-year, and 30-year fixed rate options for predictable monthly payments
• Adjustable Rate (ARM): 5/1, 5/6, 7/1, 7/6, and 10/1 ARM options that offer lower initial rates. Learn more about ARM loans.
• Interest-Only: Some programs offer interest-only payment options during the initial period
• Purchase and Refinance: Available for both new purchases and refinances (rate/term and cash-out)

Eligible Property Types

Jumbo loans can be used for a variety of property types, including:

• Single family homes
• Condominiums (warrantable and non-warrantable on select programs)
• Townhomes
• 2-4 unit properties
• Co-ops (in select markets)

Why Work With a Broker for Jumbo Loans?

Jumbo loans are not one-size-fits-all. Different lenders offer different products with different credit score requirements, LTV limits, reserve requirements, and pricing. As a mortgage broker, I have access to multiple jumbo products and can compare options to find the most competitive rate and terms for your situation. Whether you have a straightforward profile or a more complex scenario, I can help you navigate the jumbo market efficiently.

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