What Is A Jumbo Loan
A jumbo loan is a type of mortgage that exceeds the loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans are too large to be purchased or guaranteed, they’re considered non-conforming loans.
Key Things to Know About Jumbo Loans:
1. Loan Limits
In 2025, the conforming loan limit for most of the U.S. is around $766,550. In high-cost areas (like parts of California or New York), the limit can go up to $1,149,825. Anything above these amounts is considered a jumbo loan. Jumbo loans up to 3,000,000
2. Requirements
Because they’re riskier for lenders, jumbo loans typically require:
- Higher credit scores (usually 700+)
- Lower debt-to-income ratios (typically under 43%)
- Larger down payments (often 10–20%+)
- Proof of strong income and assets
3. Interest Rates
- Rates used to be higher than for conforming loans, but recently they’ve been quite competitive—sometimes even lower depending on the borrower profile.
4. Use Cases
- Common for financing luxury homes, properties in expensive markets, or multifamily properties.
- Also used in refinances for large existing mortgages.
5. Risks
- Harder to qualify for
- Stricter underwriting
- Not backed by federal programs, so risk stays with the lender
Are you thinking about applying for one, refinancing, or just exploring options? I can help you compare lenders or break down rates too.