A jumbo loan is a mortgage that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency. For 2026, the baseline one-unit limit is $832,750, and it is higher in designated high-cost areas.
Why jumbo loans are different
Because the loan amounts are larger, lenders take on more risk and cannot sell these loans to Fannie Mae or Freddie Mac the same way. That usually means stricter qualifying standards.
What jumbo loans typically require
- A strong credit score, often 700 or higher
- A larger down payment, frequently 10% to 20%
- Documented reserves, meaning savings left after closing
- Clear proof of income and assets
Avoiding mortgage insurance
Because jumbo loans often involve a 20% down payment, private mortgage insurance is frequently not required, which helps offset the larger loan size.
High-cost county limits change yearly. If you are near the line, we can tell you whether you fall into conforming or jumbo territory.