Jumbo Loan Requirements 2025: Get Approved for $1M+ Mortgage
Jumbo loan rates are now LOWER than conventional (5.85% vs 6.19%) for the first time in years! But qualifying requires 700+ credit, 20% down, and 43% DTI. Here is the complete guide to getting approved for $1M+ mortgages in 2025.
💎 Get Approved for $1M+ Jumbo Loan at 5.85%
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Compare Jumbo Loan Rates →⚡ Quick Answer: Jumbo Loan Requirements 2025
✅ Minimum Requirements:
- • Credit Score: 700+ (720+ for best rates)
- • Down Payment: 20% minimum (10% possible with higher rate)
- • DTI Ratio: 43% or lower (36% preferred)
- • Cash Reserves: 6-12 months of payments
- • Income: Stable, verifiable, sufficient
- • Loan Amount: Over $806,500 (2025 conforming limit)
Current Jumbo Rates
5.85%
30-year fixed jumbo
LOWER than conventional 6.19%!
2025 Jumbo Limit
$806,500+
Loans above this amount
$1.2M+ in high-cost areas
📋 Complete Jumbo Loan Requirements
Credit Score: 700+ Required
Credit Score Tiers:
- • 760+: Best rates (5.85%)
- • 720-759: Good rates (6.00%)
- • 700-719: Higher rates (6.25%)
- • Below 700: Very difficult (6.50%+ or denied)
Unlike conventional loans (accept 620), jumbo lenders want 700+ because there is no government backing. Higher risk = stricter requirements.
Down Payment: 20% Minimum
Down Payment Examples:
- • $1M home: $200K down (20%)
- • $1.5M home: $300K down (20%)
- • $2M home: $400K down (20%)
- • 10% down possible but rate increases 0.50%
Most lenders require 20% to avoid PMI and get best rates. Some allow 10% down but you will pay higher rate and may need larger reserves.
DTI Ratio: 43% Maximum (36% Preferred)
DTI Calculation Example:
- • Monthly income: $20,000
- • New mortgage payment: $6,000
- • Other debts: $1,000 (car, credit cards)
- • Total debt: $7,000
- • DTI: $7,000 / $20,000 = 35% ✅ APPROVED
43% is max but 36% or lower gets best rates. Pay off debts before applying to lower DTI.
Cash Reserves: 6-12 Months Required
Reserve Requirements:
- • $1M loan: 6 months reserves ($36K)
- • $2M loan: 9 months reserves ($90K)
- • $3M+ loan: 12 months reserves ($180K+)
- • Includes: Checking, savings, investments
Lenders want proof you can make payments even if you lose income. Retirement accounts count at 70% value.
Income: Stable and Verifiable
Income Documentation:
- • W-2 employees: 2 years W-2s + 2 months pay stubs
- • Self-employed: 2 years tax returns + P&L statements
- • Bonus/commission: 2 year average required
- • Investment income: 1099s + account statements
Lenders scrutinize income heavily for jumbo loans. Job changes during process can kill your approval.
⚖️ Jumbo vs Conventional Loans (2025)
| Factor | Conventional | Jumbo |
|---|---|---|
| Loan Limit | Up to $806,500 | $806,501+ |
| Current Rate | 6.19% | 5.85% (LOWER!) |
| Min Credit Score | 620 | 700+ |
| Min Down Payment | 3-5% | 20% |
| Max DTI | 50% | 43% |
| Reserves Required | 0-2 months | 6-12 months |
| PMI Required | If less than 20% down | No PMI ever |
| Appraisal | 1 appraisal | Often 2 appraisals |
💰 WHY JUMBO RATES ARE LOWER NOW
Jumbo rates (5.85%) are now 0.34% LOWER than conventional (6.19%) because wealthy borrowers are less risky. They have high credit, large down payments, and cash reserves. Compare jumbo rates to lock in this advantage.
💵 How Much Income Do You Need?
Here is the income you need for different jumbo loan amounts (using 36% DTI):
$1M Home ($800K loan)
20% down, 5.85% rate
$180K
annual income
$1.5M Home ($1.2M loan)
20% down, 5.85% rate
$270K
annual income
$2M Home ($1.6M loan)
20% down, 5.85% rate
$360K
annual income
$3M Home ($2.4M loan)
20% down, 5.85% rate
$540K
annual income
💎 Get Approved for Your Jumbo Loan
Compare rates from 50+ jumbo lenders. Rates as low as 5.85%. Get approved in 48 hours. Free, no obligation.
Get Jumbo Loan Pre-Approval →❓ Frequently Asked Questions
What is a jumbo loan in 2025?
A jumbo loan is any mortgage over $806,500 (the 2025 conforming loan limit). In high-cost areas like San Francisco or NYC, the limit is higher ($1.2M+). Jumbo loans are not backed by Fannie Mae or Freddie Mac, so lenders set their own requirements.
Why are jumbo rates lower than conventional in 2025?
Jumbo borrowers are less risky: 700+ credit, 20% down, large cash reserves, high income. Lenders compete for these premium borrowers by offering lower rates. Current jumbo rate 5.85% vs conventional 6.19%.
Can I get a jumbo loan with 10% down?
Yes, but expect 0.50% higher rate and stricter requirements (740+ credit, 12 months reserves, 36% DTI max). Most lenders prefer 20% down for best rates and approval odds.
What credit score do I need for a jumbo loan?
Minimum 700, but 720+ gets better rates and 760+ gets best rates (5.85%). Below 700 is very difficult and may require 25-30% down with higher rates.
Do jumbo loans require PMI?
No! Jumbo loans never have PMI, even with 10% down. This is one advantage over conventional loans which require PMI if you put down less than 20%.
How long does jumbo loan approval take?
48-72 hours for pre-approval. Full approval and closing takes 30-45 days (slightly longer than conventional due to extra documentation and often 2 appraisals required).
Can self-employed people get jumbo loans?
Yes! But you need 2 years tax returns, profit/loss statements, and CPA letter. Lenders will average your 2-year income. Expect extra scrutiny on deductions and business expenses. Find lenders who specialize in self-employed jumbo loans.
What are cash reserves and how much do I need?
Cash reserves are liquid assets (checking, savings, investments) you have AFTER closing. Jumbo lenders require 6-12 months of mortgage payments in reserves. Example: $6K monthly payment = need $36K-$72K in reserves after closing.
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