What Is a Jumbo Mortgage?
A jumbo mortgage is a type of home loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). These non-conforming loans are used to finance luxury homes and properties in high-cost real estate markets, where conventional loan limits are not sufficient.
In 2025, the conforming loan limit is generally $806,500, but this amount may be higher in designated high-cost areas. Any loan amount above that is considered a jumbo loan.
Why Choose a Jumbo Loan?
- Higher loan limits for more expensive properties
- Competitive interest rates
- Flexible terms and loan structures
- Primary residences, second homes, and investment properties eligible
- Fixed-rate and adjustable-rate options
- No private mortgage insurance (PMI) required with sufficient down payment
Jumbo Mortgage Options
Fixed-Rate Jumbo Loan
Lock in a predictable monthly payment with a long-term interest rate. Ideal for buyers who plan to stay in their home long-term.
- Terms typically available: 15, 20, or 30 years
- Stable payments, even if market rates rise
Best for: Long-term homeowners looking for stability
Adjustable-Rate Jumbo Loan (ARM)
Enjoy a lower initial interest rate for the first 5, 7, or 10 years, followed by periodic adjustments.
- Lower initial monthly payments
- Rate adjusts based on market conditions after the fixed period
Best for: Buyers who plan to move, sell, or refinance before the rate adjusts
Interest-Only Jumbo Mortgage
Pay only the interest for a set period (usually 5–10 years) before the loan amortizes.
- Lower initial payments
- Greater cash flow flexibility
Best for: High-income earners with fluctuating income or bonus-based compensation
Jumbo Cash-Out Refinance
Refinance your current jumbo loan and tap into home equity to fund renovations, investments, or other financial goals.
- Unlock large amounts of cash at competitive rates
- Consolidate debt or fund major expenses
Best for: Homeowners with significant equity looking to leverage their property
Jumbo Loan Requirements
Because jumbo loans are not backed by Fannie Mae or Freddie Mac, they have stricter qualification standards:
- Higher credit score typically 700+
- Lower debt-to-income (DTI) ratio (usually under 43%)
- Larger down payment (often 10–20%+)
- Significant cash reserves
- Full documentation of income, assets, and employment
Jumbo Mortgage vs. Conforming Loan
Loan Amount
Over $766,550 (2025 limit)
Up to $766,550
Credit Score Needed
700+
620+
Down Payment
10–20%+
As low as 3%
PMI Required
Not typically
Yes if <20% down
Income Verification
Full documentation required
Is a Jumbo Loan Right for You?
If you’re purchasing a high-end property or need to finance more than the conforming limit, a jumbo mortgage may be the right solution. Our team will help you navigate the process, compare loan options, and secure a competitive rate that fits your goals.
Get Pre-Approved for a Jumbo Loan Today
Whether you’re buying a luxury home, refinancing a high-value property, or investing in premium real estate, we’ll help you get the jumbo financing you need.
