A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2026, the standard conforming loan limit is $806,500 in most areas of the country, with higher limits in designated high-cost areas (up to $1,209,750 in the most expensive markets like parts of California, Hawaii, and the New York metro area). Any loan above these thresholds is classified as a "jumbo" or "non-conforming" loan. Learn more in our jumbo loan guide.
The distinction matters because conforming loans can be purchased by Fannie Mae and Freddie Mac — the government-sponsored enterprises that provide liquidity to the mortgage market. This secondary market support keeps conforming loan rates relatively low and standardizes qualification requirements. Jumbo loans cannot be sold to Fannie or Freddie, so lenders must hold them on their own books (portfolio lending) or sell them to private investors. This additional risk is reflected in slightly higher interest rates — typically 0.25% to 0.5% above conforming rates — and stricter qualification requirements.
Qualifying for a jumbo loan requires stronger borrower credentials than a conforming loan. Lenders typically require: credit scores of 700 or higher (some require 720+), down payments of 10% to 20% or more, debt-to-income ratios below 43% (some lenders require 36% or less), significant liquid reserves (6 to 12 months of mortgage payments in savings), and thorough documentation of income and assets. Self-employed borrowers may face additional scrutiny, including two years of tax returns and profit-and-loss statements.
Despite the higher requirements, jumbo loans offer competitive terms for qualified borrowers purchasing high-value properties. Both fixed-rate and adjustable-rate options are available, and some lenders offer interest-only payment periods for the first 5 to 10 years. Jumbo loans do not require private mortgage insurance (PMI) at any LTV ratio, though lenders may compensate by requiring larger down payments.
At closing, jumbo loans follow the same process as conforming loans — the same documents are signed, the same disclosures are provided, and the same recording procedures apply. However, the documentation requirements may be more extensive, and lender review may take longer. At Beycome Title, we handle jumbo loan closings with the same efficiency and flat-fee pricing as any other transaction. Our team is experienced with the additional requirements and lender-specific procedures that jumbo loans often involve. Use Beycome's mortgage calculator to model jumbo loan payments, or get your free closing quote.