Jumbo Loans: Financing for High-Value Homes

Buying a home above conventional loan limits? Jumbo loans offer competitive rates for luxury and high-cost area properties.

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What is a Jumbo Loan?

Jumbo loans are mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. They're designed for high-value properties in any market or luxury homes.

High-cost areas have higher conforming limits (up to $1,149,825), but homes above these amounts also require jumbo financing.

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Key Features

Jumbo Loan Features

Higher Loan Amounts

- No maximum limit—finance homes of any value

Competitive Rates

Jumbo rates are now competitive with conforming rates (sometimes even lower)

Flexible Property Types

Primary residences, second homes, and investment properties

Larger Down Payments

Typically require 10-20% down (sometimes more for investment properties)

Stricter Requirements

Higher credit scores and lower DTI ratios than conforming loans

Is a Jumbo Loan Right for You?

✓ Are buying a home above conforming loan limits
✓ Have excellent credit (typically 700+)
✓ Have significant income and assets
✓ Can make a 10-20% down payment
✓ Have low debt-to-income ratio
✓ Are buying in high-cost areas or luxury markets

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Jumbo Loan Requirements

Credit Score

Minimum 700, prefer 740+ for best rates

Down Payment

- Primary residence: 10-20%
- Second home: 15-20%
- Investment property: 20-30%

Debt-to-Income Ratio

Maximum 43%, prefer 38% or lower

Income Documentation

Extensive verification: W-2s, tax returns, pay stubs, asset statements

Cash Reserves

6-12 months of mortgage payments in savings (varies by loan amount)

Appraisal

May require two appraisals for very high-value properties

Property Standards

Must meet lender guidelines

When Do You Need a Jumbo Loan?

2026 Conforming Limits:

Most Counties: $832,750
High-Cost Counties: $1,249,125
Above These Amounts: Jumbo loan required

Example High-Cost Areas:

Los Angeles County, CA
San Francisco Bay Area, CA
New York City, NY
Seattle, WA
Boston, MA

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Jumbo Loan Options

Fixed-Rate Jumbo

30-year or 15-year fixed rate
Predictable payments, no rate changes

Jumbo ARM

Lower initial rate, adjusts after 5, 7, or 10 years
Good for short-term ownership

Jumbo Cash-Out Refinance

Access equity from high-value property
Up to 80% loan-to-value

Jumbo Construction Loan

Finance construction of luxury custom home
Converts to permanent jumbo mortgage

How to Get a Jumbo Loan

Step 1

Get Pre-Approved

More extensive documentation than conforming loans

Step 2

Gather Documentation

Tax returns, W-2s, pay stubs, asset statements, investment accounts

Step 3

Find Your Property

Shop with confidence knowing your jumbo loan budget

Step 4

Appraisal(s)

May require one or two appraisals depending on loan amount

Step 5

Underwriting

More detailed review than conforming loans

Step 6

Close

Typically 30-45 days (sometimes longer for complex situations)

Jumbo Loan FAQs

Not necessarily. Jumbo rates are now competitive with conventional rates, and sometimes lower depending on the specific borrower’s financial profile.borrowers.

Typically 10-20% for primary residences, 15-20% for second homes, and 20-30% for investment properties.

Yes, though 740+ will get you the best rates and terms.

Yes, though requirements are stricter: larger down payment (20-30%), more reserves, and potentially higher rates.

Similar to conventional loans—30-45 days—though complex financial situations may take longer.

Finance Your Dream Home

See what you qualify for with a jumbo loan. Get pre-approved today.