A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. If you are purchasing a higher-priced home and need to borrow more than those limits allow, a jumbo loan is the solution. These loans follow stricter qualifying requirements, but they offer the flexibility to finance the home you want in higher-cost markets.
Lender Express works with multiple jumbo lenders to find competitive terms for high-balance purchase and refinance transactions.
WHAT IS A JUMBO LOAN?
A jumbo loan is a non-conforming mortgage. That means it does not meet the loan size limits set by Fannie Mae and Freddie Mac for conventional loans. In 2024, the conforming loan limit for most areas is $766,550. Any loan amount above that threshold requires a jumbo loan.
Because jumbo loans cannot be sold to Fannie Mae or Freddie Mac, lenders carry more risk. To offset that risk, they typically require stronger credit, larger down payments, and more documentation of assets and income.
Jumbo loans are available for primary residences, second homes, and investment properties. Fixed and adjustable rate options are available.
KEY BENEFITS
- Finance homes above the conforming loan limit
- Available for primary residences, vacation homes, and investment properties
- Fixed and adjustable rate options
- Competitive rates for well-qualified borrowers
- Can be used for purchase or refinance
- Flexible structures available for high-net-worth borrowers
HOW IT WORKS
- Determine the loan amount you need. If it exceeds the conforming limit in your area, a jumbo loan applies.
- Get pre-approved. Jumbo lenders require a thorough review of income, assets, and credit.
- Find your home. Jumbo loans apply to both new purchases and refinances.
- Complete the loan process. Underwriting may require additional documentation compared to a conventional loan.
- Close on your home.
Use our mortgage calculator to estimate your monthly payment and compare 15- and 30-year terms for a jumbo loan scenario.
WHO THIS LOAN IS BEST FOR
- Buyers purchasing high-value homes in competitive real estate markets
- Borrowers with strong credit, typically 700 or above
- Buyers with significant assets and verifiable income
- Repeat buyers or move-up buyers with equity to apply toward a larger down payment
- Buyers in high-cost markets such as major metro areas where home prices routinely exceed conforming limits
BASIC REQUIREMENTS
| Minimum Credit Score | Typically 700 or higher; some lenders require 720+ |
| Down Payment | Typically 10% to 20% or more depending on loan amount and lender |
| Debt-to-Income Ratio | Typically 43% or lower; stricter than conventional guidelines |
| Reserves | Lenders often require 6 to 24 months of payments in reserves |
| Documentation | Full income and asset documentation required; self-employed borrowers may need additional years of tax returns |
| Loan Amount | Above $766,550 in most areas (2024 limit); high-cost county limits vary |
| Property Types | Primary residence, second home, investment property depending on lender |