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It Is About the Amount You Borrow
A jumbo mortgage is a loan above the conforming limit that applies to the home. Your purchase price, down payment, and location help determine whether you need jumbo financing.
Home Purchase
Jumbo Loans
A larger home purchase comes with important choices about your payment and savings. We help you compare jumbo mortgage options, understand the cash needed, and choose a financing plan that fits the home you want and the money you want to keep available.
Jumbo financing for qualified buyers in Texas, Florida, Minnesota, and Colorado.
Start With the Basics
When Do You Need a Jumbo Mortgage?
Jumbo financing helps when the amount you need to borrow exceeds the applicable conforming loan limit. A higher purchase price alone does not determine the loan type.
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Jumbo Is a Type of Conventional Loan
Conventional financing includes both conforming and jumbo mortgages. Conforming loans follow Fannie Mae or Freddie Mac requirements. Jumbo loans exceed their loan size limits and follow the selected lender’s program requirements.
3
The Right Structure Matters
Compare your monthly payment, cash needed at closing, and savings afterward. Different lenders may offer different options for the same purchase, so review the full financing plan rather than one headline rate.
Prepare for Approval
Jumbo Loan Requirements and Documents
Jumbo requirements vary by lender and program. A clear review of your income, credit, assets, and purchase plans helps identify the options that fit.
What Lenders Review
- Credit History
- Lenders review your credit score, payment history, and outstanding debts to understand how you have managed borrowing. A stronger credit profile may give you more loan options or better pricing. Jumbo credit requirements vary by lender and program, so one published minimum score does not tell the whole story.
- Income and Monthly Debts
- Lenders verify your income and compare it with your proposed mortgage payment and existing monthly debts, such as car loans, student loans, and credit cards. Your housing payment includes principal, interest, property taxes, homeowners insurance, and any association dues.
- Down Payment and Available Assets
- Lenders verify that you have enough money for the down payment and closing costs, plus any potential asset reserve requirements. Generally, two months of statements for bank and other asset accounts are required to document these funds.
- Property and Loan Amount
- Lenders review the home’s value, condition, and how you plan to use it. A primary residence, vacation home, and rental property can have different financing requirements. An appraisal helps support the home’s value, and larger loan amounts or unusual properties may require additional appraisal review.
Your Document Starting List
- Income records
- Recent pay statements and W2s for employment income, or the records needed for self employment, retirement, bonuses, commissions, or other income. Tax returns are requested when required for your income source or program.
- Account statements
- Recent bank, investment, and other statements supporting funds for the down payment, closing expenses, and reserves. Transfers or large deposits may need additional records.
- Employment and residence history
- Prepare at least two years of employment and residence history, including employer details and previous addresses. Include information about current mortgages and other properties.
- Photo ID and purchase contract
- Have your government issued photo ID ready. Once you have a home under contract, provide the signed purchase agreement. You can begin the preapproval process before choosing a home.
The final checklist depends on your income sources, property, and the selected loan program.
Separate the Three Parts
Down Payment, Closing Costs, and Reserves
The down payment is not the entire cash requirement. Review what you will spend at closing and what you will need to keep available afterward.
Down Payment
The part of the purchase price you pay rather than borrow. There is no single down payment rule for every jumbo loan. Compare available programs based on the property, loan amount, and your qualifications.
Closing Costs and Prepaids
Expenses such as lender and settlement charges, prepaid interest, and taxes and insurance collected at closing. These are separate from the down payment.
Reserves After Closing
Lenders may require enough savings or investments left after closing to cover several months of mortgage payments. The amount required depends on your loan program.
Make the Financing Fit Your Plans
Decisions Worth Comparing Before You Choose
The best financing plan considers both the home you want and the financial flexibility you want after the purchase.
Put More Down or Keep More Savings?
A larger down payment reduces the amount borrowed and may change pricing or eligibility. Keeping more cash may help with moving, repairs, and other priorities. Compare the payment and the savings you would have left under each option.
Close to the Conforming Limit?
Compare a conforming loan with a larger down payment against a jumbo loan that leaves more cash available. Neither is automatically the better deal. Review rates, fees, the total payment, and cash retained.
Fixed Rate or Adjustable Rate?
A fixed rate keeps your interest rate and principal and interest payment unchanged. An adjustable rate mortgage may offer a lower starting rate and payment, but both can increase after the initial fixed period. Compare the upfront savings with the risk of higher payments later.
Buying Before Your Current Home Sells?
Your existing mortgage, available cash, and sale timing may affect the new loan. Review qualification and the source of your down payment before relying on sale proceeds you have not received.
Plan your next home purchase →Match the Loan to the Home
Your Property and How You Will Use It Matter
Discuss the property early. A strong financial profile does not replace the lender’s review of the home and its intended use.
Primary Home or Second Home?
Tell us how you plan to use the property. A home for your own vacation use and a property intended for rental income can follow different financing requirements. Occupancy affects available programs, down payment, reserves, and pricing.
Condo or a Property With Unique Features?
The home must qualify along with the borrower. Condo association information, insurance, acreage, and unusual property features may require additional review. Identify these details early so the financing matches the home.
Common Questions
Jumbo Mortgage Questions
Straight answers to help you plan a larger home purchase.
Does buying a $1 million home mean I need a jumbo loan?
Not necessarily. It depends on how much you borrow after the down payment and the conforming limit for the property. For example, a $1 million purchase with $200,000 down produces an $800,000 loan, below the 2026 baseline conforming limit of $832,750 for a single family home in most counties.
Do all jumbo loans require 20% down?
No. Some programs allow less than 20% down, while other purchases may require more. The minimum depends on the loan amount, property, intended use, credit profile, and lender. We can compare the options available for your purchase.
What are reserves, and do I pay them to the lender?
Reserves are eligible funds or assets you still have after closing. You do not pay them to the lender as an additional fee. They show that you have financial resources beyond the money spent on the purchase. The required amount and eligible accounts vary by program.
Are jumbo mortgage rates always higher than conforming rates?
No. Relative pricing changes with market conditions and the lenders offering each program. Compare offers using the same loan amount, down payment, term, and other assumptions. Include lender fees and any points, which are upfront charges paid for the interest rate selected.
Can I get a jumbo loan if I am self employed?
Yes. Self employed borrowers can qualify for jumbo financing. Lenders generally review personal and business tax returns, along with other financial records, to determine qualifying income. The documents needed depend on your business structure and loan program.
See documents for self employed borrowers →Can I use a jumbo loan for a second home?
Eligible programs may finance a second home, subject to the property and your qualifications. Tell us whether it is for personal use or intended as a rental. The lender will review the actual use rather than treating every vacation property the same.
Do jumbo loans require mortgage insurance?
Many jumbo programs are structured without a separate monthly mortgage insurance charge, but requirements and costs vary. Do not assume that putting less than 20% down has the same insurance rules as a conforming loan. Compare the actual payment, rate, and fees for the program offered.
How much can I borrow with a jumbo mortgage?
There is no single maximum for every jumbo lender. Your available loan amount depends on the program, documented income, monthly debts, credit, down payment, reserves, and property. Start with your purchase goals so we can review suitable financing options.
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The Home You Want.
A Financing Plan You Understand.
Compare your options with a clear picture of the payment, cash needed, and next steps.