What Is Jumbo Loan?

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans cannot be purchased by Fannie Mae or Freddie Mac, lenders take on more risk and require stronger borrower qualifications. In 2025, any loan above $806,500 in most counties—or $1,209,750 in high-cost areas—is classified as jumbo.

For a $1,000,000 home, you would typically need at least $100,000–$200,000 as a down payment (10%–20%). Lenders generally require a credit score of 700 or higher, a debt-to-income ratio under 43%, and 6–12 months of mortgage payments in cash reserves. Interest rates on jumbo loans can be comparable to or slightly higher than conforming rates.

Key Facts

• 2025 conforming limit: $806,500 (most counties), $1,209,750 (high-cost areas)
• Typical minimum credit score: 700–720
• Down payment range: 10%–20% of the purchase price
• Reserve requirement: 6–12 months of mortgage payments in liquid assets

Frequently Asked Questions

Are jumbo loan interest rates higher than conventional rates?

Not always. Jumbo rates are sometimes comparable to or even lower than conforming rates, depending on market conditions and borrower strength. Lenders compete for high-value borrowers, so strong credit profiles often receive competitive pricing.

Can you get a jumbo loan with 10% down?

Some lenders offer jumbo loans with as little as 10% down, though 20% is more common. A lower down payment usually means a higher interest rate and stricter credit and reserve requirements to offset the lender’s increased risk.