Higher Credit Score
Some lenders require a FICO® Score☉ of 720 or better for many jumbo loans, and typically will accept no score lower than 700. Lenders typically require scores of at least 620 for conforming mortgages.
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.
To qualify for a jumbo loan, you generally need a higher credit score than you might for a conventional loan. Lenders use your credit score to see if you're financially reliable, with higher scores helping to demonstrate greater financial responsibility.
For a $600,000 home, you'll likely need a very good to excellent credit score: 760+: Best rates and terms. 740-759: Slightly higher rates.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
A good credit score to buy a home is one that helps you secure the best mortgage rate and loan conditions for the mortgage you're applying for. You'll typically need a credit score of 620 to finance a home purchase.
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.
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).
Home loans below the limit are called conforming mortgages. Home loans above the conforming loan limit are called jumbo mortgages. A jumbo mortgage can have a fixed rate or an adjustable rate. A 30-year jumbo mortgage will have a loan term of 30 years.
A “jumbo loan” refers to any conventional mortgage larger than the conforming loan limits set by the Federal Housing Finance Agency (FHFA) each year. In 2025, single-family mortgages with balances higher than $806,500 in most U.S. counties (and $1,209,750 in certain high-cost areas) are considered jumbo loans.
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.
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.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
A credit score of at least 670 will put you in the best position to get approved for a larger personal loan amount at the lowest rates available. Make sure you shop around to ensure you get the best deal.
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.
A jumbo loan is a non-conforming loan for loan amounts greater than $806,500 for a single-family home. In certain high cost areas, including Alaska and Hawaii, the conforming limit is up to $1,209,750.
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.
It is true that many jumbo loans do require a 20% down payment, and a slightly better rate with a 20+ down payment.
If this is your first time buying a home, be aware that jumbo loans come with higher credit score requirements, larger down payments, and potentially higher interest rates. The qualifications are more stringent than those for conventional loans, which can pose challenges for first-time buyers.
For 2024, the upper limit is $766,550 to $1,149,825, depending on location. Jumbo loans are mortgages that exceed these limits in their respective counties.
For a $400,000 home, you'll likely need a good to excellent credit score: 740+: Best rates and terms. 700-739: Slightly higher rates.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.
To afford a $1 million home with a 6% interest rate, you typically need an annual salary of $250,000 to $275,000, assuming a 20% down payment ($200,000), a 30-year fixed mortgage, property taxes at 1.25% of the home's value, $5,000 annual homeowners insurance, and a debt-to-income ratio of 36%.