Jumbo Mortgage Options
A jumbo loan is a mortgage larger than the conforming loan limit, $832,750 for a one-unit home in most of the country in 2026 and up to $1,249,125 in the highest-cost counties. Fannie Mae or Freddie Mac does not back jumbo loans, so each lender sets its own rules. Expect a down payment of 10% to 20%, a credit score of 700 or higher, cash reserves, and a lower debt-to-income ratio than on a standard loan. The limit applies to your loan amount, not the price of the home. A $1,000,000 home with $200,000 down leaves an $800,000 loan, which is not a jumbo loan.
Here is how jumbo loans work, what lenders look for, and what to expect in 2026.
What Is a Jumbo Mortgage Loan?
A jumbo loan is a mortgage above the maximum size that Fannie Mae and Freddie Mac will buy. Think of those two companies as the biggest buyers of home loans in the country. They only buy loans up to a size limit, called the conforming loan limit. A loan that fits under the limit is a conforming loan. A loan over it is a jumbo loan.
The Federal Housing Finance Agency sets the limit every year, and it differs by county. Because Fannie Mae and Freddie Mac do not buy jumbo loans, lenders carry more risk on them. No single government agency writes the rules for jumbo loans. Each lender sets its own standards, so requirements can differ a lot from one lender to the next. If your loan fits under the limit, see our conventional mortgage loan page instead.
2026 Jumbo Loan Limits
Your loan is a jumbo loan when it goes above the limit for your county and the number of units. These are the 2026 limits:
| Property | Baseline Limit | Highest-Cost Areas |
|---|---|---|
| One-unit home | $832,750 | $1,249,125 |
| Two-unit home | $1,066,250 | Higher in high-cost counties |
| Three-unit home | $1,288,800 | Higher in high-cost counties |
| Four-unit home | $1,601,750 | Higher in high-cost counties |
Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher limits. A one-unit home starts at $1,249,125 there and can reach $1,873,675 in the highest-cost areas. Our conventional loan limits announcement has the details. Check the limit for the county where you plan to buy, because a loan that is jumbo in one county can be conforming in another.
Lender Requirements for a Jumbo Loan
Lenders ask for more from jumbo borrowers because the loans are larger and the lender keeps more of the risk. These are common expectations. Each lender sets its own, so you may see different numbers.
Down Payment
Many lenders ask for 10% to 20% down on a jumbo loan, and some ask for more on very large loans. A bigger down payment lowers the amount you borrow, which can lower your rate. It can also bring your loan back under the conforming limit.
Credit Score
Lenders usually want a higher credit score of 700 or higher for a jumbo loan. Some accept a score in the high 600s with a larger down payment or stronger savings. A higher score usually earns a better rate. Our guide to how to improve your credit score can help if you want to raise yours before you apply.
Debt-to-Income Ratio
Your debt-to-income ratio compares your monthly debts, including your new mortgage payment, to your monthly income before taxes. Jumbo lenders often want it at 43% to 45% or lower. Some go higher for borrowers with strong savings. See our debt-to-income guide to calculate yours.
Cash Reserves
Reserves are money you keep in savings after closing, enough to cover your mortgage payments if your income stops. Jumbo lenders often ask for six to twelve months of payments, and sometimes more on large loans. Savings, investments, and retirement accounts can count, though lenders may only count a part of some accounts.
Appraisal
An appraisal is an expert estimate of what the home is worth. Jumbo mortgages always need one, and some lenders require a second appraisal on larger loans.
Income Documents
Expect to provide recent pay stubs, W-2s, tax returns, and bank statements. Self-employed borrowers often need two years of tax returns. If your tax returns do not show your full income, a bank statement loan may be an option.
What Types of Properties Qualify for a Jumbo Loan?
Jumbo mortgages can be used for most kinds of homes. Common choices include:
- Single-family homes. These are the easiest to finance.
- Condominiums. The building has to meet the lender’s rules.
- Two- to four-unit homes. Limits and rules are tighter.
- Second homes and vacation homes. These are possible but often need a larger down payment.
Unimproved land and some unusual properties are generally not accepted. Rules for investment properties are stricter than for a home you live in, so ask your lender.
Do Jumbo Loans Require Private Mortgage Insurance?
Many jumbo mortgages do not use traditional private mortgage insurance. Instead, a lender may ask for a larger down payment or price the mortgage a bit higher. Rules vary a lot, so ask each lender what its options are. If you want to learn how mortgage insurance works, read our private mortgage insurance guide.
Jumbo Loan Interest Rates and Terms
Jumbo rates move with the market and with your credit, down payment, and savings. They can be close to conforming rates, higher, or in some cases lower, depending on the lender. We do not post a standard jumbo rate, so ask us for a quote that fits your situation.
You can choose a fixed mortgage rate or an adjustable rate:
- Fixed rate. Your rate stays the same for the life of the loan. Common terms are 15, 20, and 30 years.
- Adjustable rate (ARM). Your rate is fixed for an initial period, often five, seven, or ten years, and then can change. ARMs can start with a lower rate, but your payment can go up later.
Some lenders also offer interest-only jumbo loans, where you pay only interest for a set time. Our interest-only loan page explains how they work.
Jumbo vs. Conforming Loans
Here is how the two loan types compare:
| Feature | Jumbo Loan | Conforming Loan |
|---|---|---|
| Loan size | Above the county limit | At or below the county limit |
| Backed by Fannie Mae or Freddie Mac | No | Yes |
| Who sets the rules | Each lender | Fannie Mae and Freddie Mac guidelines |
| Down payment | Often 10% to 20% | As low as 3% |
| Credit score | Often 700 or higher | Often 620 or higher |
| Cash reserves | Often six to twelve months | Often fewer or none |
Ways to Stay Under the Jumbo Limit
You may be able to avoid a jumbo loan. A larger down payment is the simplest way. A combo loan is another option, in which a first loan stays at the conforming limit and a second loan covers part of the rest. Availability and terms vary by lender.
Veterans can also look at a jumbo VA loan, which can finance a large home with no down payment if you have full VA entitlement.
Jumbo Refinancing
You can refinance into a jumbo loan, or refinance a jumbo loan you already have. People do it to lower a rate, change a term, or switch from an adjustable-rate mortgage to a fixed rate. Many lenders limit cash-out amounts on jumbo loans. Our refinance page covers your options.
Your Next Steps
Thinking about a jumbo loan? Here is a simple order to follow:
- Check the limit. Look up the loan limit for your county and property type.
- Check your numbers. Review your credit, savings, and debts.
- Set a budget. Use our home affordability guide to see what fits.
- Plan your cash. Add up your down payment, closing costs, and reserves.
- Compare lenders. Jumbo rules vary a lot.
- Talk to us. We can review your situation and show you your options.
Jumbo Loan FAQs
Here are answers to the questions buyers ask us most about jumbo loans.
What is considered a jumbo loan in 2026?
Any loan above the conforming loan limit for your county. In most counties, that is $832,750 for a one-unit home. In the highest-cost counties, it can be up to $1,249,125.
Is $800,000 a jumbo loan?
Not in most counties. An $800,000 loan is below the $832,750 limit that applies in most places. In some counties with lower limits, it could be a jumbo loan. Check your county.
How much do I need to put down on a jumbo loan?
Many lenders ask for 10% to 20% down. Some ask for more on very large loans.
What credit score do I need for a jumbo loan?
Most lenders want 700 or higher. Some will go lower with a bigger down payment or more savings.
Are jumbo loans harder to get?
They can be, because lenders keep more risk and set stricter standards. Strong credit, steady income, savings, and a larger down payment make approval easier.
Do jumbo loans have higher interest rates?
Not always. Jumbo rates can be close to conforming rates, and sometimes lower. They depend on the lender, your credit, and your down payment.
Can I get a jumbo loan with a fixed rate?
Yes. Fixed-rate jumbo loans are common in 15-, 20-, and 30-year terms. Adjustable-rate jumbo loans are also available.
Can I use a jumbo loan for a second home or investment property?
Often yes, but requirements are tougher. Expect a larger down payment and more cash reserves.
Can I get a jumbo loan if I am self-employed?
Yes. Lenders usually ask for tax returns and bank statements, and some offer other ways to document your income.
What are the benefits and drawbacks of a jumbo loan?
A jumbo loan lets you buy a more expensive home with a single loan, and you can choose a fixed or adjustable rate. The drawbacks are stricter requirements, a bigger down payment, and larger cash reserves.
How long does a jumbo loan take to close?
Often a bit longer than a conforming loan, because of extra documents and sometimes a second appraisal. Ask your lender for a timeline.
Ready to Apply for a Jumbo Loan?
Tell us about the home you have in mind, and we will check your numbers and show you your options. Apply online or call <a href=”tel:+12623050680″>(262) 305-0680</a>. You can also see today’s rates or read about jumbo mortgage myths.
Jumbo Loan Example (10% down, 30-year fixed rate): $1,250,000 sales price, $125,000 down payment, $1,125,000 loan amount, 7.375% interest rate, 7.407% Annual Percentage Rate, $7,770 principal and interest payment.
Jumbo Loan Example (20% down, 30-year fixed rate): $1,250,000 sales price, $250,000 down payment, $1,000,000 loan amount, 7.375% interest rate, 7.411% Annual Percentage Rate, $6,907 principal and interest payment.
Taxes, insurance, and mortgage insurance will be part of the total monthly mortgage payment but are not included in the above examples. These examples are for illustrative purposes only and may differ from the current interest rate offered. Call for the current rate and full disclosure of current terms.
Union Home Mortgage is not acting on behalf of or at the direction of Fannie Mae, Freddie Mac, or the Federal Government. Jumbo loans are not backed by Fannie Mae, Freddie Mac, or any government agency.
The information provided here is for informational purposes. When interest rates and loan program information are included, it is for illustration purposes only and not a solicitation or quote for services. This is not an advertisement or loan estimate. Current interest rates, loan programs and qualification criteria can change at any time. If you have questions or need assistance, we can be reached using the contact information above.
Union Home Mortgage Corp. does not provide tax, legal, credit repair, or accounting services. The information provided is generally true but may not apply to you or your situation. For tax or legal advice please consult an appropriate professional in one of these fields.
