What are the requirements for a Jumbo loan?
Jumbo loans are designed for borrowers looking to buy a home above conforming loan limits set by the Federal Housing Finance Agency (FHFA). Conforming loan limits change every year and differ based on the home price index, which measures the changes in average single-family home prices. Any loan over an area’s conforming limit will be a jumbo loan.
Lenders will set stricter requirements that borrowers must meet to be eligible for jumbo loans. The stricter requirements are to protect a lender and could make it harder for borrowers to qualify for jumbo loans.
To learn about the requirements and start your jumbo loan application, talk with a lender today.
Jumbo loan limits
The FHFA conforming loan limits differ by county and change every year, the jumbo loan limit changes with this. Some counties have a higher cost of living than others. As of 2025, high cost of living areas have conforming loan limits of $1,209,750 for single-family homes. Lower cost of living areas have conforming loan limits of $806,500 for single-family homes. Every year, the FHFA changes the conforming limit to match changes in home prices.
Loan limits will increase for properties with two, three or four units. Residential jumbo loans cannot be used for properties with more than four units.
Jumbo loan requirements
Due to the larger loan amounts, lenders consider a jumbo loan to be a higher risk than most conforming loans. To ease their mind, lenders will have stricter requirements when underwriting jumbo loans.
While exact requirements can change depending on the lender you choose, these are some common jumbo loan qualifications borrowers will be asked to meet.
Down payment
Down payment requirements for jumbo loans are larger than conforming loans. Most lenders require a 20% down payment option. Some lenders may even look for a higher down payment percentage.
For those not able to make that large of a down payment, Rate offers jumbo loans with down payment options as low as 10%.
With their larger loan amounts, down payments for jumbo loans tend to be higher amounts than most conforming loans. If you are considering a jumbo loan, start saving as soon as possible to meet any down payment requirements.
Credit score
The credit score lenders tend to look for borrowers to have in order to qualify for jumbo loans is at least 700. However, some lenders, like us, do have loan options for borrowers lower credit scores. While other lenders will require a minimum credit score of 720. FICO rates credit scores on a range between 300 and 850, so jumbo loan credit score requirements are on the higher end.
Debt-to-income ratio
Your debt-to-income ratio (DTI) is determined by taking all the debt you have (such as loans, credit card or any other monthly payments you may have) and dividing it by your total gross income (income before taxes and deductions). DTI tells lenders how much of your monthly income is accounted for.
Lenders generally prefer a borrower have a DTI ratio of 43% when applying for a jumbo loan.
Other requirements
Some other qualifications lenders may ask you to meet are their reserve requirements and home appraisals. You will need to make sure you have enough cash on hand to cover a portion of your monthly mortgage payments.
Lenders will ask that this amount is equal to anywhere from a few months to over a year worth of monthly payments. Most lenders will ask for at least one home appraisal to ensure that the value of the house you are looking to buy is worth the loan amount, but a few lenders might ask for two appraisals.
How to know if a jumbo loan is right for you
If you are looking to buy a home with a value above an area’s conforming loan limits, a jumbo loan might be your best option.
Before you start your jumbo loan application, make sure that you can afford the higher monthly payments, closing cost and down payment. You will also want to make sure you have money set aside for several months of mortgage payments.
Talk with a lender to a lender learn what their requirements are and to start your application for a jumbo loan.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
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