Bigger down payment
While it's possible to find jumbo loan lenders that will accept a 10% down payment, most will require you to put down at least 20%. That's a lot more than you'll need for a conforming loan, which usually only requires a down payment between 3% to 5% of the home's purchase price.
For jumbo loans, the maximum debt-to-income ratio lenders might accept may be lower compared to other mortgages. Some lenders may accept a maximum DTI of no higher than 45%. Lenders want to ensure that you can afford your mortgage payments and other living expenses each month.
A jumbo loan is a mortgage that exceeds the conforming loan limit set by the FHFA for a given area. The most common conforming loan limit for 2025 is $806,500, which means any mortgage that's larger than that is a jumbo loan.
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.
2025 FHA County Loan Limits in California
The FHA's 2025 current floor is $524,225 and the ceiling is $1,209,750. FHA High Balance Jumbo loan limit – California FHA loan amounts in high-cost counties between $524,225 and $1,209,750 are referred to FHA jumbo loans or FHA high balance loans.
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.
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.
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.
You likely have money remaining after paying monthly bills. 36% to 49% means your DTI ratio is adequate, but you have room for improvement. Lenders might ask for other eligibility requirements. 50% or higher DTI ratio means you have limited money to save or spend.
Loan-to-value ratio (LTV): Lenders might want a lower LTV for jumbo loans, often no more than 80%. Cash reserves: Lenders may require borrowers to have cash reserves to cover at least 12 months of mortgage payments, in addition to down payment and closing costs.
If you're currently leasing an apartment, your monthly rent is typically included in your debt-to-income ratio. Your housing payment is considered a necessary expense, even if you rent.
Jumbo loans work differently than conventional mortgages. These loans have stricter requirements than other types of mortgages, and you'll have to meet very specific property type, down payment, credit score and debt-to-income ratio requirements to get one.
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.
→ 80/20 piggyback loan: With this structure, the first mortgage finances 80% of the home price, and the second mortgage covers 20%, meaning you finance the entire purchase without making a down payment. 80/20 mortgages were popular in the early to mid-2000s, but are less common today.
Although a 700 credit score will typically get you a jumbo loan approval, lenders often offer the best jumbo mortgage rates to borrowers with higher credit scores. Make a bigger down payment. Unlike conventional loans, you'll need at least a 10% to 20% down payment to qualify for a jumbo loan.
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 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.
Qualification Thresholds for Jumbo Loans
There usually is a hard credit score minimum of 700, and many lenders may even require as high as 720 or 740. Debt-to-income (DTI) ratio: The maximum DTI for a Jumbo loan is typically around 45%,though this can vary depending on the specific lender.
You apply for a Jumbo Loan just as you would apply for any other loan. To get started, you will want to gather the following: Proof of income and employment (pay stubs, tax returns, W-2 statements etc.) Documentation of financial assets (bank statements, etc.)
Most mortgages, including conventional conforming loans and jumbo loans, aren't assumable. Some conventional loans have assumption clauses for exceptional circumstances, such as the death of a spouse – but that doesn't apply to homebuyers who are seeking an assumable mortgage.
While buyers can likely find mortgage lenders to offer a conventional mortgage with less than a 20% down payment, jumbo loans with less than 20% down are harder to find.
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).
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.