JUMBO LOAN OVERVIEW
A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. Designed to finance luxury properties and homes in highly competitive local real estate markets, jumbo mortgages come with unique underwriting requirements and tax implications.
WHAT'S DIFFERENT ABOUT JUMBO LOANS
Jumbo loans are any mortgage – fixed or adjustable – for more than the conforming loan amount set by the Federal Housing Finance Agency (FHFA) for the county the house is in. In most counties, the jumbo loan limit is $832,750 as of 2026.
There are much more stringent requirements that come with jumbo loans compared to conventional, as they carry more risk due to the amount of the loan.
WHY JUMBO LOANS?
Allows consumers to purchase a property that they would not be able to if they limited themselves to conforming loans.
Helps avoid having to break up the loan into multiple mortgages
May offer some unique loan features, including adjustable-rate and interest-only repayment terms that may not be available on a conforming loan.
JUMBO LOAN REQUIREMENTS
Homeowners must undergo more rigorous credit scrutiny than those applying for a conventional loan.
The DTI should be under 43% and preferably closer to 36%.
To get approved, you’ll need a stellar credit score—700 or above
You’ll need to prove you have accessible cash on hand to cover your payments, which are likely to be very high if you opt for a standard 30-year fixed-rate mortgage.