Jumbo Loans

A jumbo loan is any mortgage above the conforming loan limit for the county where you are buying — $832,750 for a one-unit property in most of the country in 2026, rising to $1,249,125 in designated high-cost areas. Because Fannie Mae and Freddie Mac will not buy these loans, each lender sets its own guidelines, prices them with its own money, and decides for itself what it will accept.

That last point is the whole story. On a conforming loan, guidelines are effectively national. On a jumbo, they are a negotiation.

Check the county before you assume

Before anything else: confirm your county's actual limit.

High-cost county limits reach $1,249,125 — and several counties we lend in qualify. A $900,000 loan is jumbo in one county and conforming in the next one over, with meaningfully different pricing and documentation.

There is also high-balance conforming, the tier between the national baseline and the high-cost ceiling. Those loans still follow Fannie and Freddie guidelines with modest price adjustments, which is usually better than jumbo terms. A borrower who assumes they need a jumbo and never checks can pay for that assumption for thirty years.

What changes in underwriting?

Everything gets stricter, because the lender keeps the risk.

• Down payment. Typically 10% to 20%, sometimes more. Some programs go lower for strong files, but they are not the default.
• Reserves. This is the biggest departure from conforming. Lenders commonly want several months — sometimes twelve or more — of mortgage payments in liquid assets after closing. Borrowers who clear every other hurdle fail here.
• Credit. Generally 700+, with the best pricing reserved for meaningfully higher.
• Documentation. Deeper. Two full years of returns, detailed asset sourcing, and more scrutiny of variable income.
• Appraisal. Two appraisals are sometimes required above certain loan amounts.
• Debt-to-income. Tighter thresholds, with less tolerance for compensating factors than conforming allows.

Why a broker matters more on a jumbo

On a conforming loan, most lenders are working from the same rulebook, so shopping mostly means shopping price.

On a jumbo, lenders differ on substance. One counts restricted stock as income; another will not. One accepts a 43% debt-to-income ratio with strong reserves; another stops at 40% regardless. One has a portfolio product for self-employed borrowers using bank statements; another has nothing comparable.

A file that is declined at one lender is routinely approved at another with no change to the borrower. Access to a range of wholesale lenders is worth more here than anywhere else in the business — and a single lender, by definition, gives you one answer.

Common jumbo scenarios

Self-employed with strong deposits but modest tax returns. Bank statement programs underwrite from deposit history rather than net income. Rates are higher; approval is possible where conventional documentation fails.

Asset-rich, income-light. Asset depletion programs convert liquid assets into qualifying income on a formula. Useful for retirees and for borrowers whose wealth is not in a paycheck.

Investment property above the limit. Debt-service-coverage programs qualify the loan on the property's rental income rather than the borrower's personal income.

High earner, recent job change. Tolerances vary widely by lender and the difference is often approval versus decline.

Start with the actual number

Two things worth knowing before you shop: your county's real conforming limit, and whether your file clears the reserve requirement. Those determine whether you need a jumbo at all and, if you do, which lenders to approach.

Send us the county and the rough numbers and we will tell you where you stand.

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FAQ

What is considered a jumbo loan in 2026? Any loan above your county's conforming limit — $832,750 for a one-unit property in most counties, up to $1,249,125 in designated high-cost areas.

How much do I need to put down on a jumbo loan? Typically 10% to 20%. Some lenders go lower for strong files, but it varies by lender rather than following a national standard.

Are jumbo rates higher than conforming? Not automatically. Jumbo pricing moves independently of conforming pricing and at times has been competitive with it, since lenders keep these loans rather than selling them. It depends on the lender and the file.

What are reserves, and how many do I need? Liquid assets remaining after closing, measured in months of mortgage payments. Jumbo lenders commonly require several months and sometimes twelve or more. It is the requirement that catches the most otherwise-qualified borrowers.

What is a high-balance conforming loan? A loan above the national baseline but within a high-cost county's higher limit. It still follows Fannie and Freddie guidelines with modest price adjustments — generally better terms than a true jumbo.