What is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. For 2026, this means any loan over $832,750 in most areas (higher in some high-cost markets). Jumbo loans are ideal for purchasing luxury homes or properties in expensive markets.
Key Benefits
- Higher Loan Amounts: Finance homes over $832,750
- Competitive Rates: Often comparable to conforming loans
- Flexible Terms: Fixed and adjustable-rate options
- Interest-Only Options: Available for qualified borrowers
- Multiple Property Types: Primary, second home, investment
2026 Conforming Loan Limits
Most U.S. Counties
$832,750
High-Cost Areas
Up to $1,249,125
Any loan amount above these limits requires a jumbo loan.
Jumbo Loan Requirements
Minimum Credit Score
700+ (720+ for best rates)
Down Payment
10% - 20%+
Debt-to-Income Ratio
Up to 43%
Cash Reserves
6-12 months typically required
Documentation Needed
- Two years of tax returns
- Recent pay stubs and W-2s
- Bank and investment statements
- Proof of assets and reserves
- Letter of explanation for any credit issues
