A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency. Because Fannie Mae and Freddie Mac will not buy these loans, lenders keep them on their own books, which means stricter qualifying, but often surprisingly competitive rates.
In 2026, you generally need a jumbo loan when you borrow more than $806,500 on a single-family home in most U.S. counties (limits are higher in designated high-cost areas). Most jumbo programs want a 700+ credit score, 10–20% down, a DTI under 43%, and 6–12 months of reserves in the bank after closing.
Despite the higher bar, jumbo rates have often been within a tenth of a percent of conforming, sometimes lower, because banks want high-balance borrowers as long-term clients.
| Minimum credit score | Typically 700 (some programs allow 680) |
|---|---|
| Minimum down payment | 10–20% depending on lender and loan size |
| Debt-to-income (DTI) | 43% soft ceiling at most lenders |
| Mortgage insurance | Usually none with 20% down |
| Loan limits (2026) | Above $806,500 in most counties (2026) |
| Property types | Primary, second home, investment (extra requirements) |
| Upfront fee | None; 6–12 months reserves required |
| Cash reserves required | 6–12 months of full housing payment, sometimes 18 months at higher balances |
| Documentation | Full documentation; bank-statement and asset-depletion options at some lenders |
These calculators help you sanity-check what this program looks like for your actual situation:
Model the full payment at jumbo loan amounts.
See whether the price you have in mind is realistic.
Check your DTI against the tighter 43% jumbo ceiling.
Closing costs scale with loan size, preview the total.
In most U.S. counties, the conforming limit is $806,500 for a single-family home, so anything larger is jumbo. In high-cost counties (much of California, the Northeast, Hawaii, Alaska), the ceiling stretches up to about $1,209,750 before jumbo applies. Multi-unit limits are higher.
Not always. For years jumbo carried a clear premium, but today well-qualified borrowers often see jumbo rates within 0.10% of conforming, sometimes lower. The reason is simple, banks want high-balance borrowers and treat them as long-term relationship opportunities.
Most lenders want 20% down to avoid mortgage insurance. Programs with 10% or even 5% down exist for very strong borrowers, but they come with tighter credit and reserve rules and usually cost more in rate.
Reserves are liquid assets you would have left after closing, measured in months of full PITI payments. Checking, savings, brokerage accounts, and a portion of retirement account balances all qualify. Six months is typical; large loans or second homes can require twelve or more.
Yes. The standard path uses two years of tax returns. If your returns understate cash flow because of write-offs, many jumbo lenders offer bank-statement programs that qualify you on twelve to twenty-four months of business deposits instead.
Yes, with adjustments. Second homes typically need slightly more down and slightly higher reserves. Investment properties want 25% down, full documentation, and stronger reserves. Pricing is also a bit higher than for a primary residence.
Sometimes. A "piggyback" structure (conforming first plus a HELOC or fixed second behind it) can be cheaper than a single jumbo if rates on jumbo are elevated, or if it lets you avoid PMI without putting 20% down. Run both side by side before choosing.
See the side-by-side breakdown in conventional vs jumbo.
Start a no-pressure conversation about your scenario when you are ready. Educational only, never a sales pitch.
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