When a mortgage becomes jumbo
A jumbo loan is a mortgage larger than the conforming loan limit for your county, the most Fannie Mae and Freddie Mac will buy. For 2026, the limit for a one-unit home is $832,750 in most of the country and up to $1,249,125 in high-cost areas. Above that, lenders keep the loans or sell them privately, so they set their own rules.
What jumbo lenders usually want
- A credit score of about 700 to 740 or higher.
- A down payment of 10% to 20%, depending on the lender and loan size.
- Cash reserves of 6 to 12 months of payments after closing, more for very large loans.
- A debt-to-income ratio around 43% or less, with full income documentation.
An example
A $1,300,000 home in San Francisco with 15% down needs a $1,105,000 loan. That’s under the county’s $1,249,125 limit, so it stays conforming. In a county with the $832,750 baseline, the same loan would be jumbo.
Staying under the limit
Sometimes a slightly larger down payment, or a second loan on top of a conforming first mortgage (a piggyback), keeps you in conforming territory. Jumbo rates aren’t always higher, though: for strong borrowers they can be close to or even below conforming rates, so compare both.
Preparing for a jumbo loan
Jumbo lenders often require two appraisals for very large loans and look closely at bank statements to verify reserves. Gather complete documentation early, including statements for retirement and investment accounts, since many lenders count part of those balances toward reserves. Shop several lenders: jumbo pricing varies more between lenders than conforming pricing does.
Questions buyers ask
How many months of reserves do jumbo lenders require?
Commonly 6 to 12 months of total housing payments after closing, and sometimes more for very large loans or multiple properties. Retirement and investment accounts often count, at a discount.
What is the jumbo loan limit in 2026?
Anything above your county’s conforming limit: $832,750 in most counties and up to $1,249,125 in high-cost areas for one-unit homes.
Do jumbo loans have higher rates?
Not always. For strong borrowers they can be similar to or lower than conforming rates.
Can I get a jumbo loan with 10% down?
Some lenders allow it with strong credit and reserves; 20% down opens more options.