Jumbo Loan
Financing for luxury properties and high-cost areas exceeding conforming loan limits.
Overview
Jumbo loans exceed the conforming loan limits set by the Federal Housing Finance Agency ($766,550 in most areas for 2026, higher in designated high-cost areas). These non-conforming loans cannot be purchased by Fannie Mae or Freddie Mac, so lenders assume more risk and typically require stronger borrower qualifications. Jumbo loans are essential for purchasing luxury homes or properties in expensive markets like San Francisco, New York, and Los Angeles.
Min. Down
10-20%
Min. Credit
700
Term
15 or 30 yr
PMI
No
Best For
- Luxury home buyers
- Buyers in high-cost markets
- High-income professionals
- Buyers purchasing investment properties over conforming limits
Pros
- Finance homes above conforming limits
- Competitive rates for well-qualified borrowers
- No mortgage insurance typically required
- Flexible property types allowed
- Can finance up to $3-5M or more
Cons
- Higher credit score requirements (700+)
- Larger down payment needed (10-20%)
- Stricter qualification standards
- Higher interest rates for some borrowers
- More documentation required
- Less lender competition
Requirements
- Minimum 700 credit score (720+ preferred)
- Down payment of 10-20%
- Cash reserves of 6-12 months
- Maximum 43% debt-to-income ratio
- Two years of tax returns
- Additional asset documentation