Jumbo Loans
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.
Program Details
Key Benefits
- No conforming loan limits
- Custom underwriting for unique situations
- Multiple property types eligible
- Interest-only payment options
- ARM and fixed-rate options
Program Tags
Who It's Best For
- Buyers purchasing homes above conforming loan limits
- High-income professionals (doctors, attorneys, executives)
- Buyers in expensive housing markets
- Those purchasing luxury or high-value properties
- Borrowers with significant assets and strong credit
Advantages
- Finance high-value homes not possible with conforming loans
- Competitive rates for well-qualified borrowers
- No loan limit—programs available to $5M+
- Variety of term and structure options
- Interest-only options available
- Portfolio lending allows flexible underwriting
- No upfront mortgage insurance premium
Considerations
- •Higher credit and income requirements
- •Larger down payments typically required
- •More reserves needed (6-12 months)
- •Rates may be slightly higher than conforming
- •More documentation required
- •Fewer lenders compete in jumbo space
Eligibility Requirements
- Loan amount exceeds conforming limits ($766,550+ in most areas)
- Strong credit history (typically 680-700+ required)
- Significant cash reserves (6-12 months of payments)
- Primary residences, second homes, and investment properties
- Full documentation of income and assets
Additional Requirements
- Higher credit scores than conforming loans (typically 700+)
- Lower debt-to-income ratios (usually 43% or less)
- Larger cash reserves (6-12 months of mortgage payments)
- Full documentation of income (tax returns, W-2s, pay stubs)
- Two appraisals may be required for very large loan amounts
- Higher down payments (10-20%+ typical)
Pro Tips
- Shop multiple lenders—jumbo rates and requirements vary significantly between banks
- Consider piggyback loans (80-10-10) to avoid jumbo rates on part of your financing
- Physician and professional programs may offer reduced down payments for doctors, dentists, attorneys
- Asset depletion programs can help qualify using investment accounts
- Private banking relationships may unlock better terms at larger institutions
- Interest-only options are available for cash flow flexibility during high-income earning years
- ARM products can offer lower initial rates if you plan to sell or refinance within 5-10 years
Also Known As
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.
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Typical Documents
- Last 30 days of pay stubs or income docs
- Last 2 years W-2s or 1099s (as applicable)
- Most recent 2 months of bank statements
- Government-issued ID
- Additional asset reserves
- Potential second appraisal
Exact items vary by program and scenario.
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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.