Jumbo Loans: Frequently Asked Questions
Get answers to common questions about jumbo loans, from qualification requirements to loan limits and everything in between.
Qualification Requirements
What credit score do I need for a jumbo loan?
Most lenders require a minimum credit score of 680-700 for jumbo loans. However, some may require scores of 720 or higher for the best terms.
How much income do I need to qualify?
While there's no set income requirement, you'll need to demonstrate sufficient income to cover the larger loan payments. A lower debt-to-income ratio (typically below 43%) is often required.
Down Payments
What's the minimum down payment?
Most jumbo loans require a down payment of 10-20%. Some lenders may require more for very high loan amounts or if other qualification factors are borderline.
Can gift funds be used for the down payment?
While some lenders accept gift funds, many require that at least a portion of the down payment comes from your own funds. Documentation of the gift source is always required.
Loan Limits
What makes a loan “jumbo”?
A loan becomes jumbo when it exceeds the conforming loan limits set by Fannie Mae and Freddie Mac ($726,200 in most areas for 2024, higher in certain high-cost areas).
Is there a maximum jumbo loan amount?
Maximum loan amounts vary by lender, but many offer jumbo loans up to $2-3 million. Some specialized lenders may go higher for qualified borrowers.
Property Types
What types of properties can I buy?
Jumbo loans can be used for primary residences, second homes, and investment properties. However, terms may vary based on property type and intended use.
Are there special appraisal requirements?
Yes, jumbo loans often require more detailed appraisals, and some lenders may require multiple appraisals for high-value properties.
Want to Learn More?
Explore our comprehensive resources to better understand jumbo loans and determine if they're right for your situation.