About jumbo loans
A loan is considered jumbo if the amount of the mortgage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $806,500 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $1,209,750).
Jumbo loan limits
These limits vary by lender and location and are routinely adjusted based on prevailing market conditions. As of 2024, this limit is $766,550 for a single-unit house across most of the contiguous United States, though certain areas like Alaska and Hawaii have limits as high as $1,149,825.
The new ceiling loan limit for one-unit properties will be $1,149,825, which is 150 percent of $766,550. Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limits will be $1,149,825 for one-unit properties.
Typically, jumbo loan rates are higher than conventional loan rates. Since jumbo loans carry higher loan amounts and pose higher risks to lenders, they often come with higher interest rates. Additionally, jumbo loans may require larger down payments and stricter qualification criteria compared to conventional loans.
If you live in an area with a high cost of living, or you're in the market for an expensive home, you may need a jumbo loan to finance your purchase. Jumbo loans are mortgages with loan amounts that exceed local conforming loan limits.
Most lenders require at least 10% of the home's value as a down payment on a jumbo loan, although some may ask for up to 30% to reduce their risk. If you put less than 20% down, you'll likely be required to have private mortgage insurance (PMI) until you have at least 20% equity in your house.
You can potentially avoid a jumbo loan by saving for a larger down payment. By saving more, you reduce the amount you need to borrow. You can also avoid applying for a jumbo loan by looking at less expensive properties you can finance with a conforming loan.
For 2025, the Federal Housing Finance Agency (FHFA) raised the maximum conforming loan limit for a single-family property to $806,500 from $766,550 (in 2024). In certain high-cost areas, the ceiling for conforming mortgage limits is 150% of that limit, or $1,209,750 for 2025.
To qualify for a jumbo loan, you'll need a higher credit score — and possibly a higher income, down payment or more assets — than you would for a conforming loan. For example, U.S. Bank calls for a minimum 740 credit score to be considered for a jumbo loan versus 620 for a conforming loan.
Debt-To-Income Ratio (DTI)
Conventional loans typically allow a DTI ratio up to 50%, while lower DTIs may result in more favorable terms and interest rates. On the other hand, jumbo loans typically allow a maximum DTI of 45%, although borrowers with 36% or lower may get better terms and rates.
Securing a jumbo mortgage can offer potential tax benefits, such as deductions on mortgage interest and property taxes, which might reduce the cost of owning a high-value home. However, these benefits are subject to IRS regulations and eligibility criteria, and not all borrowers will qualify.
A Jumbo Loan is for mortgages more than $625,500. It also offers 30 and 15 year fixed rate mortgage and competitive ARM products with full document, alternate documentation and limited documentation.
Applicants can get home loan up to Rs. 15 crore*, based on their eligibility. Know the home loan eligibility criteria and documents required for home loan before applying.
Taking out a jumbo mortgage doesn't immediately mean higher interest rates. In fact, jumbo mortgage rates are often competitive and may be lower than conforming mortgage rates. It ultimately depends on the lender and the market conditions.
The current 2024 jumbo loan limit in California is $766,550 for single-family homes in most counties. However, in certain high-cost areas, the limit can rise to as much as $1,149,825. These loan limits are determined annually by the Federal Housing Finance Agency (FHFA), based on changes in average U.S. home prices.
Do jumbo loans require mortgage insurance? Making a down payment of less than 20% normally means you have to pay for private mortgage insurance (PMI). That's true for most jumbo loans as well as conforming mortgages. PMI can be pretty expensive — especially for jumbo loans.
As a general rule of thumb, you can expect to make a down payment of at least 10% on your jumbo loan. Some lenders may require a minimum down payment of 25%, or even 30%. While a 20% down payment is a good benchmark, it's always best to talk to your lender about all options.
In 2024, the conforming loan limit for most counties in the U.S. is $766,550. For homes in Los Angeles County, the conforming loan limit is $1,149,825 in 2024. Nearby Orange County is the same amount but in San Bernardino and Kern counties, the limit is $766,550.
The loan once approved & Processed can only be pre-closed. In case of pre-closure of the loan, a charge, currently 3% of the balance principal outstanding will be applicable.
A “piggyback” second mortgage is a home equity loan or home equity line of credit (HELOC) that is made at the same time as your main mortgage. Its purpose is to allow borrowers with low down payment savings to borrow additional money in order to qualify for a main mortgage without paying for private mortgage insurance.
1. Max debt-to-income ratio (DTI) for jumbo loans is usually 43% Your DTI is the percentage of your monthly earnings used to pay off all debt obligations and it's used by lenders to determine how large of a monthly mortgage payment you can handle.
A jumbo loan is basically a type of mortgage that exceeds the Federal Housing Finance Agency's (FHFA) conforming loan limits. In most cities across the U.S. the base conforming loan limit is $806,500 for a regular 1-unit property. Some high-cost locations in California, Colorado, Florida, DC, Massachusetts, etc.