So you want to finance a high-value property that exceeds traditional mortgage limits. A jumbo mortgage loan is your best option.
Not sure where to begin? We’re here to help. Let’s take a closer look at what jumbo mortgage loans are, key requirements, and when you should acquire one:
What is a Jumbo Mortgage Loan?
Every year, the Federal Housing Finance Agency (FHFA) sets maximum dollar limits for mortgages. Loans that fall within these limits are called conforming loans. A jumbo mortgage loan is a conventional loan, but it exceeds the conforming loan limit for its area.
In 2025, the following conforming loan limits apply in the U.S.:
- $806,500 for a single-family home
- $1,032,650 for a two-unit property
- $1,248,150 for a three-unit property
- $1,551,250 for a four-unit property
But with property ownership becoming more and more expensive, which is why people consider acquiring a jumbo loan. Lenders offer jumbo loans of up to $3 million. You can get an even higher jumbo loan if you work with a reputable lender who specializes in jumbo loans.
Key Requirements for a Mortgage Jumbo Loan
The process of obtaining a jumbo loan is generally more complex. First things first, make sure you meet the necessary requirements. Here’s a brief breakdown:
Credit Score
Your credit score, which ranges from 300 to 850, gives lenders a snapshot of your creditworthiness. Since jumbo loans pose a greater risk for the lender, you need a higher credit score to be eligible. Many lenders require a minimum credit score of 700. This can go up to 760 depending on your property type.
Debt-to-Income (DTI) Ratio
For conventional mortgages, your DTI ratio must not be higher than 43%. Jumbo loan lenders require an even lower debt-to-income ratio. In simple terms, if one-third of your income is getting eaten up by debt payments or credit card bills, you might not qualify for a jumbo loan.
Down Payment
The required down payment varies from lender to lender. Some lenders want you to put down more than 20% to secure funds without private mortgage insurance (PMI). However, some reputable lenders like SoFi offer jumbo loans with a 10% down payment.
Documentation for Jumbo Loans
As hinted earlier, lenders bear a greater risk with jumbo loans. So they require extensive documentation and financial information to get a clear picture of a lender’s history. The following personal and employment information is required:
- Government-issued ID
- Social Security number
- Residential address
- Credit history authorization
- Pay stubs
- W-2s
- Federal tax returns
Jumbo loans often require proof of significant liquid assets or cash reserves. Some lenders may require reserves of 6 to 24 months of housing payments. You can submit bank statements or monthly statements from your investment accounts.
Who Needs a Jumbo Mortgage Loan
You should consider acquiring a jumbo mortgage loan if:
- You want to purchase a high-value property that costs more than the local conforming loan limit.
- You have an excellent credit score.
- You have a low debt-to-income ratio.
- You have significant cash reserves.
