A jumbo loan is a mortgage larger than the conforming loan limit for your county, the most that Fannie Mae and Freddie Mac will buy. Because they can’t be sold to them, jumbo loans usually require higher credit scores (often 700 or more), larger down payments (often 10% to 20%), more cash in reserves and more documentation. Rates can be similar to conforming loans or slightly different, depending on the market.
Where the line is
Conforming loan limits are set each year by county. Most counties use the standard limit; high-cost areas have higher limits, up to a ceiling. If your loan amount (not the price) is above your county’s limit, it’s a jumbo loan.
See: Loan limits by countyThe conforming and FHA limits for every county, the highest price you can pay before needing a jumbo loan, and next year’s limits when announced.A larger down payment can keep you under the limit. If your county’s limit is $832,750 and you’re buying at $1,000,000, putting down $167,250 or more keeps the loan conforming. Check yours with the jumbo loan limits tool.
Typical requirements
| Conforming | Jumbo (typical) | |
|---|---|---|
| Credit score | About 620+ | Often 700 to 740+ |
| Down payment | 3% to 5%+ | Often 10% to 20%+ |
| Debt-to-income | Up to about 45% to 50% | Often 43% or less |
| Reserves | Often 0 to 2 months | Often 6 to 12+ months |
| Appraisal | One | Sometimes two for larger loans |
Each lender sets its own jumbo rules, so requirements vary more than for conforming loans.
Options to avoid a jumbo
- Put more down to bring the loan under the limit.
- A piggyback second mortgage: a conforming first mortgage plus a second loan or HELOC for the rest. Compare the combined cost.
- Buy in a county with a higher limit, if you’re flexible on location.
Costs to compare
Jumbo pricing is less standardized, so shop several lenders, including private banks that offer rate discounts if you move assets to them. Compare the payment and total cost with the jumbo loan calculator and compare mortgage offers.
Prepare your documents
Expect to provide full tax returns, statements for all asset accounts and explanations for large deposits. If you’re self-employed, see getting a mortgage when self-employed, and gather paperwork with the document checklist.
Common questions
What makes a loan jumbo?
A loan amount above the conforming limit for the county where the home is located.
Are jumbo loan rates higher?
Not always. Jumbo rates can be similar to or even below conforming rates depending on the market, but requirements are stricter.
Can a bigger down payment avoid a jumbo loan?
Yes. If the loan amount after your down payment is at or below the county limit, the loan is conforming.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.