A jumbo loan is a mortgage that exceeds the conforming loan limits set for conventional loans. Because jumbo loans involve larger loan amounts, lenders may apply different requirements.
How jumbo loans work
Jumbo loans are used when the loan amount is higher than the applicable conforming loan limit. These loans are not handled the same way as standard conforming loans, so requirements may vary more by lender.
Who may consider a jumbo loan?
- Buyers in higher-cost housing markets
- Second home buyers
- High-income borrowers purchasing larger properties
- Borrowers refinancing a higher loan balance
- Buyers with strong credit and assets
Common jumbo loan requirements
- Strong credit profile
- Larger down payment
- Significant cash reserves
- Lower debt-to-income ratio
- Detailed income documentation
- Property appraisal review
Buying a higher-priced home or second home?
What to compare
Borrowers considering a jumbo loan should compare rates, fees, reserve requirements, down payment options, and documentation requirements across available lending paths.
Review your financing options before moving forward.
Get StartedJumbo loan limits, requirements, pricing, down payment, reserves, and eligibility vary by lender, borrower profile, property, location, and market conditions.