What is an FHA jumbo loan?
An FHA loan is a government-backed home loan that allows more flexibility for a borrower’s down payment options and credit score. A jumbo loan lets borrowers get a loan larger than what the Federal Housing Finance Agency (FHFA) sets as the conforming limit for a county, or the maximum amount you can borrow with a conventional loan in an area.
FHA jumbo loans are a combination of the two, issuing loans to borrowers who are looking for more lenient restrictions on loans larger than a county’s conforming limit.
If you are looking to get an FHA jumbo mortgage, talk with a lender and start your FHA jumbo loan application today!
FHA jumbo loan limits
Limits for an FHA jumbo loan are set by the Department of Housing and Urban Development (HUD). Similar to conforming loan limits, FHA loan limits will vary by county and year. Some counties have a higher cost of living and, in turn, higher conforming loan limits to reflect this.
In 2025, the FHA loan limits for single-family homes are $472, 030 in most of the nation and $1,089,300 in higher-cost areas.
FHA loan limits are adjusted annually based on the national median home price and national conforming loan limit. Limits increase for two-, three- and four-unit properties.
FHA jumbo loan requirements
To qualify for an FHA jumbo loan, borrowers will have to meet the requirements for a standard FHA loan as well as requirements set by lenders. Additional lender requirements for an FHA jumbo loan might make it harder for some borrowers to qualify compared to a standard FHA loan.
FHA loan requirements:
- Minimum credit score of 580 for a 3.5% down payment option
- Debt-to-income ratio of 43% or lower
- The property needs to be a primary residence
- An upfront and annual mortgage insurance premium (MIP)
- Cannot be used on a property with more than four units
Additional requirements lenders may look for:
- Cash on hand to cover up to 18 months of monthly mortgage payments
- Borrowers could have a higher closing cost
- Lenders might ask for a higher credit score for qualification
- At least 3.5% down payment
Pros and cons of FHA jumbo loans
Like with most other loan products, FHA jumbo loans have their own pros and cons depending on your needs.
Pros
The major benefit of an FHA jumbo loan is the ability for borrowers with lower credit scores to get a loan larger than the maximum conforming limit in their area. This larger loan comes with smaller down payment options compared to a conventional conforming loan.
Depending on your credit score and lender, you might even be eligible for lower interest rates.
Cons
One of the biggest disadvantages when it comes to getting FHA jumbo loans is the strict qualifications from the FHA and your lender. These loans also require MIP that could potentially last for the life of the loan, which will increase your monthly mortgage payments. Closing costs on jumbo loans also tend to be higher than those for conforming loans.
Jumbo loans are not offered by every lender, which can make it more difficult when trying to obtain one.
How to apply for an FHA jumbo loan
Starting your application for an FHA jumbo loan is just like starting an application for any kind of loan. You will want to check to make sure you meet the qualifications before you connect with a lender.
Your lender will want to see your credit score, proof of income and potential reserve funds. Lenders will also want to know where you are looking to buy a home to check the county’s conforming limits. Having all this information ready can save you time during the application process.
To answer any questions or start your FHA jumbo loan application, talk with a trusted lender today.
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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