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Key takeout
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In most parts of the US, jumbo loans are mortgages over $806,500 as of 2025, but the amount varies depending on the location.
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Jumbo loans generally qualify more strictly than non-jumbo loans, including a higher credit score, a higher level of income or assets, or a higher down payment.
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The interest rates on jumbo loans are usually higher than those on regular, conforming mortgages.
What is a Jumbo Loan?
Jumbo Loan is a Types of mortgages This exceeds the local conformance loan limit set annually by the Federal Housing Finance Agency (FHFA). Mortgages worth over $806,500 in most parts of the US in 2025.
Many mortgage lenders offer jumbo loans up to $3 million or $5 million. Jumbo loans can be found in even more quantities. Mortgage broker People who specialize in them.
Jumbo loans can be used for major residences. Investment Real Estate And a vacation home. You may use it to buy a mansion, but there are also things you need to buy a regular home in an expensive neighborhood.
How does a jumbo loan work?
Despite its “non-conforming” status, there aren’t many jumbo loans Unlike traditional mortgages. For example, borrowers can get fixed or adjustable jumbo mortgages with a variety of terminology options.
However, while interest rates on jumbo loans are often higher than those for compliance with loans, the gap has recently ended. As of May 28, 2025, Bankrate National Lenders survey found that the 30-year fixed jumbo rate was 7.02%, while the traditional 30-year fixed loan was 6.99%. This is because Fannie Mae and Freddie Mac have increased the guarantee fees they charge lenders with conforming loans.
Jumbo Loan vs. Compatible Loan
Most loans fit. This means that it meets certain criteria set by Fannie Mae and Freddie Mac, government-sponsored companies that buy most US mortgages. Jumbo Loans do not comply with these standards. Therefore, they fall into the non-conforming loan financing category.
Jumbo Loan Limit
2025, Applicable loan restrictions For most of the US, it costs $806,500. However, Hawaii, Alaska, and certain counties have significantly higher median home prices than the national average, so the limit can reach $1,209,750.
Costs above these amounts require jumbo loans, so these ceilings are often referred to as “jumbo loan limits,” but technically they are the starting point for jumbo.
State loan restrictions
The following table is shown State-by-state conformance loan restrictions for 2025. In many states, restrictions vary from county to county.
How to qualify for a Jumbo Mortgage
Jumbo mortgages pose more risk to lenders as the loans are not supported by Fanny or Freddie. As such, Jumbo lenders typically impose stricter underwriting guidelines than mortgage lenders fit. Overall, if you want to take out any of these large loans, you need to make sure your financial profile is very good or excellent.
There are three general hurdles that borrowers must clarify to obtain approval for a jumbo loan.
- income: Your debt should generally be less than a third of your income.
- Credit score: The lowest credit score you’re most likely to be eligible for a Jumbo Loan is 700.
- Cash reserve: You have to make a down payment 10-20% of jumbo loans.
Jumbo Loan Income Requirements
Yes, if you have a big income, it helps – and just as importantly, you Low debt and income (DTI) ratiothe percentage of monthly income required for debt payments. If a large amount of your income is eaten up by debt payments – for example, over a third – you may not qualify for a jumbo loan unless your credit score is good or you have a significant amount spare Or current assets.
Jumbo Loan Credit Score
A higher credit score is required to qualify for a Jumbo vs. Compliant loan. for example, US Bank For most jumbo loans, you need to consider a minimum credit score of 740 against a 620 conforming loan.
Jumbo loan down payment
You may need to pay an important down payment to qualify for a Jumbo Loan. Usually 10% to 20%. Be prepared to show sufficient reserves or liquid assets to cover your mortgage payments between 6 and 12 months.
For example, if you have a $1 million jumbo loan, you could potentially need between $100,000 and $200,000 for your down payment. Also, assuming you are borrowing at the current average rate, you will need to book an additional $40,000-$80,000 in addition to what you need to pay for the closure fee.
Is the jumbo loan perfect for me?
Jumbos is aimed at buyers with ample resources. Jumbo Loans may be suitable for you:
- Has a strong financial profile: Excellent credit, low DTI ratio, at least 6 months of cash reserve.
- Expensive properties are required or required: If you live in some parts of the country, jumbo loans are essential for buying a modest home.
That said, a jumbo loan is not for you if you mean your home will break down or your home will become poor.