Jumbo loans, explained
A jumbo loan is a mortgage larger than the maximum loan size that Fannie Mae and Freddie Mac will buy. Because those loans don’t fit the standard limit, they’re funded by lenders using their own rules. That means requirements and pricing vary a lot from lender to lender, and shopping across lenders matters more here than with a standard loan.
We’re a mortgage broker. We compare jumbo programs from multiple lenders and manage your file from application to closing.
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What counts as “jumbo” depends on the county
The conforming loan limit is set by FHFA each year and is higher in expensive counties. A loan that is jumbo in one county can be conforming in another. Who jumbo loans are for
- Buyers of higher-priced homes in Seattle, the Eastside, the Bay Area, Portland and other expensive markets
- Homeowners refinancing a large existing mortgage
- Buyers who want to put down less than a typical jumbo requires, where a program allows it
- Self-employed borrowers whose income is complicated to document
What lenders typically look at
Jumbo guidelines vary by lender. Typical areas to expect stricter standards than a standard loan:
- Down payment or equity. Often a larger minimum, with a maximum loan-to-value that depends on loan size and occupancy.
- Cash reserves. Many jumbo programs require several months of payments in savings or investments after closing.
- Debt-to-income ratio. Generally up to 50%.
- Appraisal. Larger loans may need two appraisals or a review.
- Documentation. Expect full documentation of income and assets for most programs. Some programs for self-employed borrowers use other documents.
Loan types and occupancy
- Purchase: primary home, second home.
- Refinance: rate-and-term and cash-out.
- Fixed-rate and adjustable-rate programs. Investment properties generally use business-purpose financing. See DSCR loans for rental property financing based on rent rather than income.
How it works
- Tell us your plan. Purchase price or current mortgage, down payment or equity, and property location.
- We compare lenders. Jumbo guidelines differ, so we match your file to a program you can qualify for.
- We manage the file. Documents, appraisal, underwriting and closing.
- Close. Your lender funds the loan and you get your keys or your new terms.
Illustrative example (numbers are examples only)
Purchase price $[1,600,000]. Down payment [20]% = $[320,000]. Loan amount $[1,280,000]. Because the loan is larger than the conforming limit in many counties, jumbo guidelines apply. The lender may also require reserves of about [6–12] months of payments after closing. Actual terms depend on the lender, your credit, assets, and the property.
What affects your jumbo options
- Loan size and the county limit. Just above the limit, some lenders offer programs with terms close to a standard loan. Higher up, guidelines tighten.
- Your assets. Reserves can matter as much as income.
- Property type and location. Condos, rural properties, and unique homes may face extra rules.
- Timing. The limit resets each year, and a loan that is jumbo now may be conforming next year, or the reverse.
Frequently asked questions
Is a jumbo loan harder to get than a standard loan? Often, yes. The standards for credit, down payment, and reserves are usually stricter, and they vary by lender. That’s why we compare programs.
How much do I need to put down? It depends on the loan size and program. We’ll tell you before you apply.
Do I need two appraisals? Some lenders require a second appraisal or a review above a certain loan amount.
Can I get a jumbo loan if I’m self-employed? Often yes, but documentation requirements vary.
Can I use a jumbo loan for a second home or an investment property? Second homes are generally available. For investment properties, see DSCR loans.
Where are you licensed? Washington, California, Oregon, Idaho, Texas and Florida. See where we lend.