What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2026, the standard conforming limit is $832,750 (higher in designated high-cost counties). Because jumbo loans can't be sold to Fannie Mae or Freddie Mac, they carry different requirements — typically 15-25% down payment, 700+ credit score, and significant cash reserves.
Key Facts
When Do You Need a Jumbo Loan?
You need a jumbo loan when the home you're purchasing (or refinancing) requires a mortgage above the conforming loan limit. In most U.S. counties, that limit is $832,750 for 2026. Some high-cost counties in Oregon and California have higher limits — check with us to see if your area qualifies for a high-balance conforming loan before assuming you need a jumbo.
Jumbo Loan vs. High-Balance Conforming
Before committing to a jumbo loan, check whether your county qualifies for high-balance conforming limits. High-balance loans are priced between standard conforming and jumbo — offering better rates and more flexible guidelines than a full jumbo. We'll help you determine whether a high-balance option is available in your market.
Jumbo Loan Requirements
Jumbo loans require a stronger financial profile: expect a minimum credit score of 700 (720+ for the best rates), 15-25% down payment, 6-12 months of cash reserves after closing, and a debt-to-income ratio under 43%. Full income documentation is standard, including W-2s, tax returns, and asset statements. Self-employed borrowers face additional scrutiny.
Are Jumbo Rates Higher Than Conventional?
Historically yes, but the gap has narrowed significantly. In some rate environments, jumbo rates are actually competitive with or lower than conforming rates — especially for borrowers with excellent credit and large down payments. This depends on market conditions, so it's worth checking current rates rather than assuming jumbo is always more expensive.
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From the Blog
Further Reading
Loan TypesWhat Is a Jumbo Loan and When Do You Need One?
Once your loan exceeds the conforming limit, you enter jumbo territory — a different set of rules, requirements, and lenders. Here's what to know before you shop.
VA LoansVA Jumbo Loans in Lake Oswego, Oregon: Why Veterans Buy More Home for Less — and Keep Their Savings
A $1,500,000 home in Lake Oswego requires a conventional buyer to bring $300,000 in down payment plus $105,000 in required reserves — before closing costs. A veteran with VA entitlement can close on the same home with as little as $22,000 out of pocket, at a lower rate. Here's the side-by-side comparison with real numbers.