What is a jumbo loan?

A jumbo loan is a mortgage used to finance a property that exceeds standard loan limits. Because these loans are too large for standard government-backed programs to buy, they are issued and held entirely by private lenders.

Are interest rates higher on jumbo loans?

Not always. Jumbo loan rates can be highly competitive with standard conforming loan rates. Lenders compete aggressively for well-qualified buyers with strong finances. Your exact rate will depend on your credit score, down payment, and current market conditions.

How much do I need for a down payment on a jumbo mortgage?

Putting down 20% is standard to avoid Private Mortgage Insurance (PMI) and secure the best rate. However, some lenders offer jumbo loans with 10% or even 5% down if you have excellent credit and significant cash reserves.

How long does a jumbo loan take to close?

Jumbo loans can take slightly longer to close than standard mortgages, typically 30 to 45 days. The strict underwriting process, thorough review of cash reserves, and the potential need for a second appraisal all add time to the timeline.

Jumbo Loans & Mortgages

When standard loan limits are not enough. If you are buying a higher-priced home, you need a jumbo loan. See the requirements and check your eligibility using the form below.

Check Eligibility

Jumbo Loan Requirements

Jumbo loans are not backed by government-sponsored enterprises like Fannie Mae or Freddie Mac. Because private lenders take on all the risk, the qualification tests are stricter than standard mortgages. You must prove you can handle a large monthly payment.

Strong Credit Score

Most lenders require a credit score of 700 or higher. Some lenders ask for 720 or 740 depending on the loan size.

Down Payment

Expect to put down 10% to 20%. While some lenders accept smaller down payments, doing so requires impeccable credit and extra cash reserves.

Low Debt-to-Income (DTI) Ratio

Lenders prefer a DTI ratio below 43%. Your total monthly debt payments, including the new mortgage, should not consume too much of your income.

Cash Reserves

You must prove you have liquid assets left over after closing. Lenders often want to see enough cash or easy-to-access investments to cover 6 to 12 months of mortgage payments.

Multiple Appraisals

Because the property value is high, some lenders require two separate home appraisals to confirm the house is worth the purchase price.

Looking for rates first? Compare Jumbo loan rates.