Loan option
Jumbo loans
A jumbo loan is one that exceeds the conforming loan limit applicable to the property's county and unit count. Because it cannot be sold to Fannie Mae or Freddie Mac under those limits, the lender holds more risk and sets its own requirements.
How it works
How jumbo loans work
Whether a loan is "jumbo" is not a fixed dollar figure. It depends on the conforming limit that applies to the county and the number of units, and those limits are set annually by the Federal Housing Finance Agency. A loan amount that is conforming in one Florida county can be jumbo in another, and a figure quoted last year may be out of date.
Because jumbo loans sit outside agency guidelines, each lender writes its own. Expect more attention to reserves, to the stability and documentation of income, and to the appraisal, and expect more variation between lenders than you would see on a conforming loan.
Some lenders offer jumbo programs that accept alternative income documentation, which can matter for business owners whose tax returns understate their cash flow. Availability varies considerably.
What to weigh up
- Pricing and requirements differ more between lenders on jumbo loans than on conforming loans, so comparing lenders matters more here.
- Reserve requirements can be substantial and are a common reason a file does not work.
- Condominium and unique-property appraisals get more scrutiny at jumbo loan sizes.
Set by the lender, not by us
These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.
- The entire credit box: minimum score, maximum debt-to-income, reserves, maximum loan amount
- Whether alternative income documentation is accepted
- Property types and occupancy accepted
- Appraisal requirements, including whether a second appraisal is needed
Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.
Terms used on this page
- Jumbo loan
- A loan exceeding the conforming limit for the property's county and unit count, underwritten to the lender's own standards.There is no fixed dollar figure that makes a loan jumbo — it depends on the county and the year.
- Conforming loan limit
- The maximum loan amount eligible for purchase by Fannie Mae or Freddie Mac. The Federal Housing Finance Agency sets it annually, and it varies by county and by number of units.A loan above the applicable limit becomes a jumbo loan, underwritten to the lender's own standards.
- Reserves
- Funds you still hold after closing, usually expressed as a number of months of housing payments, which a lender requires as a cushion.Funds counted as reserves generally cannot also be counted as qualifying income under an asset depletion calculation.
Questions about this program
- At what loan amount does a mortgage become jumbo?
- At the point it exceeds the conforming limit for the county and unit count, which the Federal Housing Finance Agency publishes and updates annually. Check the current published limit for the specific county rather than relying on a general figure.
- Are jumbo loans harder to get?
- They are underwritten to each lender's own standards rather than to a common guideline, which usually means more documentation and more scrutiny of reserves. Whether that is harder depends on the file and on which lender is looking at it.
Official sources
Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.
- Current conforming loan limits (opens in a new tab) — Federal Housing Finance Agency
- Explore loan options (opens in a new tab) — Consumer Financial Protection Bureau
Talk it through before you start shopping
Bring your situation, not your paperwork. A first conversation is about which programs actually fit and what the numbers look like — no documents, no credit pull, no commitment.