2026-09-14T00:00:00|6.968|0.023|6.274|0.035|6.725|-0.009|6.623|0.032||
Jumbo Loans: Financing for High-Value Homes
Jumbo mortgages exceed conforming loan limits and are designed for luxury homes and high-cost markets.
Expect stricter requirements but competitive rates for well-qualified borrowers.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2024, the standard conforming limit is $766,550 for most of the U.S. In high-cost areas (including many California counties), the limit is up to $1,149,825. Loans above these thresholds are "jumbo" — they cannot be purchased by Fannie Mae or Freddie Mac, which means lenders take on more risk and require stronger borrower profiles.
Jumbo Loan Requirements
Higher Credit Scores
Most lenders require 700–720 minimum, with best rates for 740+. Jumbo lenders scrutinize credit history more closely than conforming loan programs.
Larger Down Payments
Typically 10%–20% down required. Some lenders offer 10% down jumbo programs, but 20% is standard. Larger down payments mean lower rates.
Lower DTI Required
Most jumbo lenders cap DTI at 43%, with some preferring 36% or lower. Strong reserves (6–12 months of payments) are often required.
Cash Reserves
Expect to show 6–12 months of mortgage payments in liquid assets after closing. This proves you can handle the larger payment even during financial disruptions.
Two Appraisals
Many jumbo lenders require two independent appraisals to verify the property value, since the stakes are higher on larger loans.
Jumbo vs. Conforming Comparison
| Feature | Conforming | Jumbo |
|---|---|---|
| Loan Amount | Up to conforming loan limits | Above conforming loan limits |
| Min. Credit Score | 620 | 700–720 |
| Down Payment | 3%–5% | 10%–20% |
| Interest Rates | Market standard | Slightly higher (gap has narrowed) |
| Cash Reserves | 2 months typical | 6–12 months |
Check today's jumbo mortgage rates or use our mortgage calculator to estimate payments on a jumbo loan. For homes below the conforming limit, see our conventional loans page.
```Explore Loan Types
FRED-sourced data
Updated daily
No personal info required
Optimal Blue + Freddie Mac
Official Government Resources
CFPB — Owning a Home
Consumer Financial Protection Bureau guide to buying a home,
comparing loan offers, and understanding closing.
HUD — Buying a Home
Department of Housing & Urban Development resources for
homebuyers, including FHA program information.
VA — Home Loans
Official VA home loan program information, eligibility, and
Certificate of Eligibility requests.
Freddie Mac — Rate Survey
Weekly Primary Mortgage Market Survey, a benchmark for national
average mortgage rates.
FHFA — Loan Limits
Federal Housing Finance Agency conforming loan limits by county,
updated annually.
IRS — Mortgage Interest Deduction
IRS guidance on deducting home mortgage interest, points, and
eligible mortgage-related expenses.
Ready to Find Your Rate?
Get matched with the best mortgage rates available today.
No commitment, no impact on your credit score.
