Jumbo Loans
A jumbo loan is a mortgage that exceeds the conforming loan limits set annually by the Federal Housing Finance Agency (FHFA). Because these loans can't be purchased by Fannie Mae or Freddie Mac, lenders carry the risk themselves — which means stricter qualification standards and, often, different pricing. Jumbo loans are frequently the only option for buyers in high-cost real estate markets.
In this guide
What is a conforming loan limit?
Each year the FHFA sets a maximum loan amount for conventional mortgages. Loans at or below that limit are called “conforming.” Anything above it is “non-conforming” — commonly called a jumbo loan. Limits are higher in federally designated high-cost areas such as parts of California, New York, and Hawaii.
Down payment & credit requirements
Jumbo loans typically require a larger down payment — often 10–20% or more — and stricter credit standards than conforming loans. Most lenders look for a credit score of 700 or above (often 720+), a lower debt-to-income ratio, and documented cash reserves of several months' payments.
Rates on jumbo loans
Historically, jumbo rates ran higher than conforming rates because of the greater risk lenders retain. That gap has narrowed in recent years and sometimes reverses. The rate you receive depends heavily on your down payment, credit profile, and the specific lender — comparing multiple lenders is especially important for jumbo borrowers.
Is a jumbo loan right for you?
If the home you want costs more than your area's conforming loan limit and you have strong credit and savings, a jumbo loan may be your path forward. A licensed loan officer can also explore whether a "piggyback" structure — such as an 80/10/10 (first mortgage + second mortgage + down payment) — could let you keep both loans within conforming limits.
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