Jumbo Loans
Big dreams deserve big financing. No conforming limits here.
Jumbo loans are designed for properties that exceed the conforming loan limits set by the Federal Housing Finance Agency. If you are purchasing a luxury home or buying in a high-cost market, a jumbo loan gives you the financing power you need. As a direct lender, we hold jumbo loans in our own portfolio, giving us flexibility on underwriting and the ability to offer competitive rates without selling your loan to a third party.
Who Is This For?
- Buyers purchasing homes above $766,550 (or above the local conforming limit)
- High-net-worth borrowers with strong assets
- Buyers in high-cost markets like California, New York, or Hawaii
- Professionals with high income and excellent credit
- Buyers of luxury and custom-built homes
What You Need to Know
Min. Down Payment
10-20%
Min. Credit Score
700
Max DTI
43%
Cash Reserves
6-12 months
Loan Amounts
Up to $3M+
PMI
Varies by lender
What to Expect
- 1Minimum credit score of 700 (720+ recommended for best rates)
- 2Down payment of 10-20% depending on loan amount
- 3Debt-to-income ratio below 43%
- 4Cash reserves of 6-12 months of mortgage payments
- 5Full income and asset documentation
- 6Two years of tax returns and W-2s (or business returns if self-employed)
- 7Property appraisal required (sometimes two appraisals for very high amounts)
Frequently Asked Questions
A jumbo loan is a mortgage that exceeds the conforming loan limits established by the Federal Housing Finance Agency (FHFA). For 2026, the conforming limit is $766,550 in most of the U.S. and up to $1,149,825 in high-cost areas. Any loan above these thresholds is considered a jumbo loan. Because jumbo loans cannot be purchased by Fannie Mae or Freddie Mac, they carry slightly more risk for lenders, which is why they typically require stronger credit profiles and larger down payments.
Historically, jumbo loan rates were significantly higher than conforming rates. However, in recent years the gap has narrowed considerably, and jumbo rates are now often within 0.25% of conforming rates. In some cases, jumbo rates can actually be lower than conforming rates because lenders compete aggressively for high-value borrowers. Your exact rate depends on your credit score, down payment, loan amount, and assets. As a direct lender, we offer some of the most competitive jumbo rates available.
Most jumbo loans require between 10% and 20% down, depending on the loan amount and lender. For loan amounts up to $1.5 million, 10% down is common with strong credit. For amounts above $1.5 million, 15-20% is typical. Some lenders offer jumbo loans with as little as 5% down for loan amounts just above the conforming limit, but expect higher rates and stricter requirements. Having a larger down payment improves your rate and may reduce or eliminate PMI requirements.
While jumbo loans have stricter credit requirements than conforming loans, you do not need perfect credit. Most lenders require a minimum score of 700, with 720 or above getting the best rates. If your score is between 680 and 700, you may still qualify but expect to put more money down and accept a higher rate. Below 680 is very difficult for a jumbo loan. Compensating factors like significant assets, low debt-to-income ratio, or a very large down payment can help offset a credit score on the lower end.
It depends on the loan amount and the lender. Many lenders require two independent appraisals for jumbo loans above $1 million or $1.5 million to verify the property value. For jumbo loans just above the conforming limit, a single appraisal is usually sufficient. The cost of each appraisal ranges from $500 to $1,500 for high-value properties, and both are paid by the borrower. At DirectLender.com, we can advise you on exactly what to expect based on your specific loan amount and property.
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