High-Balance Mortgage

Jumbo Loans:
Finance Above the Conforming Limit

Buying above $806,500? A jumbo loan finances high-value purchases that exceed Fannie Mae and Freddie Mac limits, with competitive rates and flexible terms for well-qualified borrowers.

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✓ Loans above $806,500✓ 720+ credit score✓ 10 to 20% down✓ Primary, second home & investment

The Basics

What Is a Jumbo Loan?

A jumbo loan is a conventional mortgage that exceeds the conforming loan limit set annually by the Federal Housing Finance Agency. In 2025, that limit is $806,500 for most of the country. Any loan above that amount is a jumbo loan, and because jumbo loans can't be sold to Fannie Mae or Freddie Mac, lenders keep them on their own books or sell to private investors, which changes how they're underwritten and priced.

The result: stricter qualification standards than conforming loans. Higher credit score minimums, larger down payments, more reserves, and more thorough income documentation. In exchange, there's no loan amount ceiling, jumbo financing goes as high as lenders are willing to go, typically $2M, $3M on standard programs and higher for portfolio lenders.

$806,500

2025 conforming limit, jumbo starts above this

720+

Typical min. credit score

10 to 20%

Minimum down payment

12mo

Reserves often required

Jumbo is still a conventional loan

Jumbo loans are conventional, they're not government-backed. The term "jumbo" simply refers to the size exceeding the conforming limit, not a separate program type. The same lender that offers conforming conventional loans also typically offers jumbo products, just with a different underwriting threshold and pricing structure.

Eligibility

Jumbo Loan Requirements

Jumbo requirements are lender-specific, there's no Fannie Mae or Freddie Mac guideline to standardize them. That said, most lenders cluster around similar standards for well-qualified borrowers. Here's what to expect.

Requirement	Typical Jumbo Standard
Min. Credit Score	720 (some lenders 700, some require 740+)
Min. Down Payment	10 to 20% depending on loan size and credit
Max DTI	43 to 45%, stricter than conforming
Reserves Required	6 to 18 months PITI (more for larger loans)
Income Documentation	Full doc, 2 yrs returns, W-2s, pay stubs
Self-Employed	2 yrs business returns + CPA letter common
Appraisal	Full appraisal required, often two appraisals above $1.5M
Loan Amount	Above $806,500, typically up to $2 to 3M standard
Property Types	Primary, second home, investment (lender-specific)

Reserves are the most overlooked requirement

Most conforming buyers think about credit and down payment, but jumbo lenders focus heavily on reserves. Having 12 months of PITI sitting in liquid accounts after closing isn't just a nice-to-have on a large jumbo loan, it's often required. Retirement accounts typically count at 60 to 70% of their value. Mortgages by Channing will identify your reserve requirement early in the process.

Qualification Tiers

Credit Score & Down Payment Tiers

Jumbo pricing is highly sensitive to credit score and loan-to-value. Unlike conforming loans where LLPA tables are public, jumbo pricing is lender-specific, but the general relationship holds: better credit and more down payment equal better rate.

740 to 850

Strong credit

Full program access, best rates

Most lenders offer their full jumbo product suite. 10% down available at this tier on most programs. Maximum loan amounts accessible.

10 to 20% down

720 to 739

Good credit

Standard jumbo qualification

Widely accepted floor for jumbo lending. Rate is competitive. Some lenders require 20% down at this range, others allow 10 to 15%.

15 to 20% down

700 to 719

Acceptable

Fewer lenders, more restrictions

Some jumbo programs go to 700 but require larger down payments and more reserves. Rate premium applies. Shop carefully at this range.

20 to 25% down

Below 700? Consider a Non-QM jumbo

If your credit score is below 700 but your income and assets are strong, Non-QM bank statement or asset depletion programs can finance jumbo loan amounts with alternative documentation. These carry a rate premium but may be the right path for self-employed borrowers with significant write-offs. See Non-QM loan options →

Want To Know What This Looks Like On Your Numbers?

Every scenario is different. A soft credit check tells you where you actually stand, and nothing hits your report until you decide to move forward.

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Comparison

Jumbo vs. Conforming Conventional Loan

Both are conventional loans, but the requirements, pricing, and flexibility differ significantly once you cross the conforming limit.

Factor	Jumbo Loan	Conforming Conventional
Loan Amount	Above $806,500	Up to $806,500
Sold to Fannie / Freddie	No, portfolio or private	Yes, standardized
Min. Credit Score	720 typical	620
Min. Down Payment	10 to 20%	3 to 5%
Reserves Required	6 to 18 months	0 to 2 months
Max DTI	43 to 45%	Up to 50% (DU approved)
Interest Rate	Varies, can be near or below conforming	LLPA-based pricing
PMI	Rare, most lenders don't require PMI on jumbo	Required under 20% down
Appraisal	Full, sometimes two appraisals	Standard appraisal

Jumbo rates aren't always higher than conforming

A common misconception: jumbo rates are always more expensive than conforming. Because jumbo borrowers are typically lower-risk (higher credit, more reserves, larger down payments), jumbo rates can actually be at or below conforming rates in some market environments. The rate you get depends heavily on your credit profile and the lender, Mortgages by Channing shops multiple jumbo lenders to find the most competitive pricing for your loan.

Property Types

What Can You Buy with a Jumbo Loan?

Jumbo loans are available for a range of property types, primary residences, second homes, and investment properties. Requirements and down payments vary by occupancy type.

Primary Residence

Single-family homesMost common. 10% down available at 740+ credit on standard programs.
CondominiumsLender-specific condo approval standards, more stringent than conforming. HOA financials matter.
2 to 4 unit propertiesAvailable on some jumbo programs if owner-occupied. Higher down payment typically required.
New constructionOne-time close and two-close new construction jumbo available on many programs.

Second Home & Investment

Second homes / vacation propertiesAvailable on most jumbo programs. Typically 10 to 20% down. Must be a reasonable distance from primary residence.
Investment propertiesAvailable on some jumbo programs. 20 to 30% down typical. Rental income may be counted toward qualification.
Agricultural land or working farmsOutside jumbo lending scope. Specialty ag lenders handle these.

Why Jumbo

Benefits of a Jumbo Loan

For buyers purchasing above the conforming limit, a jumbo loan is the primary conventional path, and it comes with advantages that many borrowers don't expect.

No Loan Ceiling

Conforming stops at $806,500. Jumbo goes to $2M, $3M, and beyond, financing the full purchase without a second loan.

Typically No PMI

Most jumbo lenders don't require private mortgage insurance, even with less than 20% down. The higher credit standards substitute for PMI risk mitigation.

Competitive Rates

Jumbo rates for well-qualified borrowers are often at or near conforming rates, sometimes below. Strong credit and reserves are rewarded.

Flexible Terms

30-year fixed, 15-year fixed, and ARM products (5/1, 7/1, 10/1) available. ARMs can price 0.50 to 1.00% below fixed on jumbo loans.

Second Homes & Investment

Jumbo financing available on vacation homes and investment properties, unlike FHA, VA, and USDA which restrict occupancy.

Portfolio Flexibility

Because jumbo loans are held by lenders or private investors rather than Fannie/Freddie, lenders can be more flexible on unique properties and situations.

Buying Above $806,500?

Mortgages by Channing shops multiple jumbo lenders to find the most competitive rate for your credit profile, loan size, and property type. Tell us your situation and we'll find your best option.

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Common Questions

Jumbo Loan FAQ

The 2025 conforming loan limit is $806,500 for a single-family home in most parts of the country. Any loan amount above this is a jumbo loan. High-cost areas (certain markets in California, New York, Hawaii, and a handful of other metro areas) have higher conforming limits, up to $1,209,750 in the most expensive areas. In those high-cost counties, loans between the standard limit and the area limit are called "high-balance conforming" loans, not jumbo. Mortgages by Channing can confirm which threshold applies to your specific area.

Not necessarily. Many jumbo programs allow 10% down for borrowers with 720+ credit scores on primary residences. Some programs allow 15% down at 720 to 739. The 20% threshold eliminates most lender concerns about down payment, but it's not a universal requirement. Loan size matters too, a $900,000 jumbo is treated differently than a $2.5M jumbo, and larger loans often require more down. Mortgages by Channing will identify the minimum down payment available for your specific loan amount and credit profile.

Not always, and this surprises most borrowers. Because jumbo borrowers typically have stronger credit, more assets, and larger down payments, they represent lower default risk. In many market environments, jumbo rates track at or slightly below conforming rates for well-qualified borrowers. The spread between jumbo and conforming rates fluctuates with market conditions and lender appetite. Mortgages by Channing will quote both conforming and jumbo rates when applicable so you can compare directly.

Yes, second home jumbo loans are widely available. Typical requirements: 10 to 20% down, 720+ credit score, adequate reserves to cover both properties, and the property must be a reasonable distance from your primary residence (lenders want evidence it's actually a vacation/second home, not a de facto investment). Rental income from second homes can sometimes be used for qualification depending on the lender's guidelines.

A piggyback loan, sometimes called an 80/10/10, is a strategy where you take a conforming first mortgage at or near the $806,500 limit, a second mortgage (home equity loan or HELOC) to cover additional equity, and put down 10%. This keeps the first mortgage in conforming territory and avoids jumbo qualification requirements. It can work well for purchases just above the conforming limit, say, $850,000 to $1,000,000, but becomes unwieldy at higher purchase prices. Mortgages by Channing will run the piggyback vs. jumbo comparison for your specific numbers.

Reserves are liquid assets you must have remaining after closing, not funds used for the down payment or closing costs. Most jumbo lenders require 6 to 12 months of PITI (principal, interest, taxes, insurance) in reserves, with larger loans sometimes requiring 12 to 18 months. Eligible reserve sources include checking and savings accounts (100%), investment and brokerage accounts (100%), and retirement accounts (typically 60 to 70% of vested balance). Business funds may count with proper documentation.

Yes, but full documentation is standard on conventional jumbo. You'll need 2 years of personal and business tax returns, a CPA letter confirming business continuity, and year-to-date P&L.; If your tax return net income is significantly lower than your actual cash flow due to business write-offs, a Non-QM bank statement jumbo loan may produce higher qualifying income. Mortgages by Channing will run both conventional full-doc and bank statement scenarios to show which gets you to the loan amount you need. See bank statement loan guide →

The Application

Apply From Your Phone In Fifteen Minutes

Jumbo files carry more documentation, so it helps to start early. The application itself still runs on your phone and reaches me the minute you submit it.

Starts with a soft credit check, so your score is never touched
We tell you the reserve and documentation requirements up front
Upload documents with your phone camera, no scanner needed
You hear back from Channing, not from a call center queue

If the numbers say wait, I'll tell you that too, and then we make a plan to fix whatever is in the way.

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