Jumbo loans

A jumbo loan is a mortgage that exceeds the conforming loan limit set annually by the FHFA. Because Fannie Mae and Freddie Mac can't purchase loans above that limit, jumbo loans are non-conforming and are held to stricter qualifying standards.

For 2026, a loan above $832,750 is jumbo in most U.S. counties. In designated high-cost areas, the conforming ceiling is $1,249,125, so anything above that is jumbo. Alaska, Hawaii, Guam, and the U.S. Virgin Islands use a $1,249,125 baseline with a $1,873,675 ceiling. Limits vary by county.

Most lenders look for a minimum credit score in the 700s, though it varies by lender and loan size. Because the loan amounts are larger, credit history, income stability, and reserves carry more weight than they do for a conforming loan.

Down payments typically run 10% to 20% or more, depending on the loan amount, property type, and borrower profile. Some borrowers may qualify with less down, but a larger down payment generally leads to better terms.

It depends on market conditions, lender pricing, and your credit profile. The gap between jumbo and conforming rates has narrowed in recent years, though jumbo underwriting tends to stay more conservative given the larger loan amounts involved.

Expect more documentation than a conforming loan: recent tax returns, bank and investment statements, proof of reserves covering several months of payments, and often a second appraisal to confirm the property's value.

Jumbo loans are offered by private lenders like Conventional loans, but they aren't conforming. Conforming loans meet Fannie Mae and Freddie Mac guidelines, including loan limits; jumbo loans exceed those limits and follow underwriting guidelines set by the lender.

You need a jumbo loan when your mortgage amount, not your home's purchase price, exceeds the conforming limit for your county. A larger down payment can sometimes keep a higher-priced home within conforming limits.