A jumbo mortgage is any home loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency. In most U.S. counties, that limit is $766,550 for a single-family home (as of 2024), though high-cost areas like San Francisco and New York have higher limits. Any loan above these thresholds requires jumbo financing.

Jumbo rates are typically 0.25% to 0.5% higher than conforming loan rates because they can't be sold to Fannie Mae or Freddie Mac, increasing risk for the lender. However, in competitive markets, some lenders offer jumbo rates comparable to conventional rates to attract high-net-worth borrowers.

Jumbo loans generally require a credit score of 700 or higher, a down payment of at least 10-20%, and a debt-to-income ratio below 43%. Lenders also typically require substantial cash reserves (6-12 months of payments) and thorough documentation of income and assets. The qualification process is more rigorous than for conforming loans.