What Is a Jumbo Loan?
A jumbo loan is any mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2026, the standard conforming limit is $806,500 for most counties and up to $1,209,750 in high-cost areas. Any loan above these limits is considered jumbo and cannot be purchased by Fannie Mae or Freddie Mac.
Jumbo loans are held in portfolio by banks and lenders, which means underwriting standards vary widely. Rates on jumbo loans are often competitive with — and sometimes lower than — conforming rates because the borrower profile tends to be stronger.
Jumbo does not mean difficult: Strong borrowers (740+ credit, 20%+ down, solid reserves) often find jumbo rates comparable to conventional. The key is matching to the right portfolio lender for your documentation type and property.
Who Jumbo Loans Are For
- Buyers purchasing homes above conforming limits
- High-net-worth individuals buying luxury or high-cost-area homes
- Self-employed borrowers with bank statement or asset-depletion documentation
- Investors and second-home buyers above conforming limits
Key Features
Loan amounts from $806,500 to $10M+. Down payments from 10-20%. Credit scores from 680-720 minimum. Full doc, bank statement, and asset-depletion options. Fixed and ARM terms. No PMI with 20%+ down. Reserve requirements vary (6-24 months typical).