Jumbo Loans
Jumbo loans finance home purchases above the annual conforming loan limit set by the FHFA. They require stronger credit and reserves but offer competitive pricing on luxury and high-cost area properties.
At a glance
| Minimum down payment | 10%–20% depending on loan size and credit profile |
|---|---|
| Minimum credit score | 700 typical; 740+ for best pricing |
| Maximum loan amount | Up to $3M+ depending on lender and program |
| Mortgage insurance | Often avoided by structuring with 20% down or piggyback second loan; some jumbo programs offer PMI |
Best for
- Buyers in high-cost markets like Los Angeles, Bay Area, NYC, and Boston
- Borrowers with strong income, credit, and liquid reserves
- Move-up buyers stepping into luxury or estate-sized properties
- Borrowers refinancing high-balance mortgages
Eligibility requirements
- Credit score typically 700+ (some programs accept 680)
- DTI usually capped at 43%, sometimes 45%
- 6–12 months of cash reserves after closing
- Two appraisals required on loans above certain thresholds
- Two years of stable employment with documented income
Pros
- Finance properties beyond conforming limits without splitting into two loans
- Competitive interest rates — often comparable to conforming
- Flexible terms: fixed, adjustable, and interest-only options
- Can be used for primary, second home, or investment properties
Cons
- Stricter credit and reserve requirements
- Higher down payment usually required
- More documentation and longer underwriting timeline
- Rate-sensitive — small rate changes have larger dollar impact
Documents you'll need
- Two most recent pay stubs
- Two years of W-2s and complete tax returns (personal and business if applicable)
- Two to six months of bank and investment account statements
- Documentation of liquid reserves (retirement accounts, brokerage)
- Profit & loss statement if self-employed
When you need a jumbo loan
In most California counties — including all of LA County, Orange County, and the Bay Area — any home purchase above roughly $1.2M will require a jumbo loan. In most of the rest of the country, the threshold is around $806K.
Jumbo programs vary widely between lenders. Pricing, reserve requirements, and minimum credit scores can differ significantly, so shopping the loan matters more here than on a standard conforming purchase.
Frequently asked questions
- What's the conforming loan limit for 2025?
- $806,500 in most U.S. counties. High-cost areas like Los Angeles and the Bay Area have a ceiling of $1,209,750. Anything above your county's limit is a jumbo loan.
- Are jumbo rates higher than conforming rates?
- Not necessarily. In recent years jumbo rates have often been at or below conforming rates because lenders compete aggressively for high-net-worth borrowers.
- Can I get a jumbo loan with 10% down?
- Yes, several jumbo programs allow 10% down for strong borrowers. Expect a higher rate or PMI requirement compared to 20% down.
- Do I need to be wealthy to qualify for a jumbo loan?
- You need strong income, good credit, and meaningful cash reserves — typically 6 to 12 months of payments after closing. The exact thresholds depend on the loan amount.
Related loan programs
- Conventional Loans — Conventional loans aren't backed by a government agency, follow Fannie Mae and Freddie Mac guidelines, and reward strong credit with the lowest rates and most flexible terms available.
- VA Loans — VA loans are guaranteed by the Department of Veterans Affairs and let eligible veterans, active-duty service members, and surviving spouses buy with zero down payment and no monthly mortgage insurance.
- Refinance Loans — Refinancing replaces your current mortgage with a new one — to lower your rate, shorten your term, switch loan types, or pull cash out of your equity. The right refinance depends on your goal, not just current rates.