Jumbo Loans

While it varies by the market area and changes each year, loan amounts above about $548,250 are typically treated as jumbo loans. Lenders consider these loans risky regardless of your creditworthiness.

For the most up-to-date information on these limits, visit the Federal Housing Finance Agency loan limits page.

This risk is generally balanced by a higher interest rate and a larger down payment than what's required for conforming loans. While these types of loans may cost borrowers a bit more, their availability expands credit opportunities for high-priced properties.

Jumbo loan guidelines and requirements

All home loans come with specific requirements, and jumbo loans are no different. Standards vary by lenders, but here are the basics:

• Down payment requirements for jumbo loans vary, but typically 15-30% is required as a down payment for primary residences.
• Loan amounts that are considered jumbo differ by area.
• Jumbo loans are available for primary residences, second homes, and investment properties.
• The maximum loan amount varies based on the size of the down payment and the credit history of the borrower, among other factors.
• In almost all cases, your income must be fully documented, and debt-to-income ratios will be based upon the type of transaction—purchase, refinance, or cash out refinance.