Jumbo loans finance homes that exceed conforming loan limits, typically requiring stronger credit, higher down payments, and more reserves—but offering financing for luxury and high-value properties.
A jumbo loan exceeds the conforming loan limits set by FHFA. In 2024, that's $766,550 for most areas and up to $1,149,825 in high-cost areas. Anything above these amounts requires jumbo financing with different qualification standards.
Not necessarily! For well-qualified borrowers (740+ credit, 20% down, strong reserves), jumbo rates are often competitive with or even lower than conforming rates. Rates vary significantly by lender, so shopping is essential.
Typically 10-20%, though some programs allow as low as 10% for primary residences. Down payment requirements increase with loan amount—expect 20-25% for loans over $2M and 25-30% for loans over $3M.
Most lenders require 700-720+ for the best terms. Some programs accept 680+ with compensating factors. Higher scores (740+) unlock better rates and may reduce down payment requirements.
Typically 6-12 months of mortgage payments in liquid reserves (bank accounts, stocks, retirement funds). Higher loan amounts may require more reserves. This ensures you can weather temporary income disruptions.
Yes! Interest-only options are common in the jumbo market. IO periods typically last 5-10 years, after which payments increase to include principal. This option is popular with high-income borrowers seeking cash flow flexibility.
Yes! Bank statement jumbo loans let self-employed borrowers qualify using 12-24 months of deposits instead of tax returns. Asset depletion programs also work well for borrowers with significant investment portfolios.
Yes, but expect 25-30% down, higher rates, and stricter reserve requirements. Some lenders offer DSCR jumbo programs that qualify primarily on rental income rather than personal income.
A piggyback loan combines a conforming first mortgage with a second mortgage or HELOC for the amount exceeding limits. For example, 80-10-10 means 80% first mortgage, 10% second, 10% down. This can sometimes offer better overall terms than a single jumbo loan.
Yes! Physician/professional loans are popular in the jumbo market. They typically offer reduced down payments (sometimes 0-10%), no PMI, and may allow student loan flexibility—even for new graduates with signed employment contracts.
Let us help you find the perfect fit
Use our interactive calculators to estimate your monthly payment and see how much you could save.
Exact items vary by program and scenario.
Share or print this overview for clients and partners.
Information provided is for educational purposes only and is not a commitment to lend. All loans subject to underwriting approval. Rates and terms subject to change. Equal Housing Lender. Equal Housing Opportunity.