Jumbo Loan Requirements 2026: Limits $832,750+ & How to Qualify
Jumbo loans = mortgages above $832,750 (2026 conforming limit). Need 700+ credit score, 20% down payment, 43% DTI, and 6+ months reserves. Rates are 6.50-7.00% (0.25-0.75% higher than conforming). High-cost areas have higher limits ($1.2M+ in San Francisco, NYC). Jumbo loans are NOT backed by Fannie Mae/Freddie Mac, so lenders set stricter requirements. This complete 2026 guide covers exact limits by county, qualification requirements, rates, and approval strategies. Compare with conventional loans and pre-approval process. Compare jumbo lenders now.
🏠 Jumbo Loan Quick Facts (2026)
- ✓Limit: Above $832,750 (most counties) or $1.2M+ (high-cost)
- ✓Credit Score: 700+ minimum (720+ for best rates)
- ✓Down Payment: 20% minimum (10-15% possible with higher rate)
- ✓DTI: 43% max (36% preferred)
- ✓Reserves: 6-12 months PITI (principal, interest, taxes, insurance)
- ✓Rates: 6.50-7.00% (0.25-0.75% higher than conforming)
📍 2026 Conforming Loan Limits by Area
Standard Counties:
$832,750 = conforming limit
Above $832,750 = jumbo loan
High-Cost Counties:
$1,249,125 = conforming limit (San Francisco, NYC, etc.)
Above $1,249,125 = jumbo loan
What Is a Jumbo Loan?
Jumbo loan = mortgage that exceeds conforming loan limits set by Federal Housing Finance Agency (FHFA). These loans are NOT backed by Fannie Mae or Freddie Mac, so lenders take on more risk and require stricter qualifications.
2026 Conforming Limits:
- • Standard counties: $832,750 (most of U.S.)
- • High-cost counties: $1,249,125 (San Francisco, NYC, LA, Seattle, etc.)
- • Alaska/Hawaii: $1,249,125 (entire states)
- • Above these limits: Jumbo loan required
Example:
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Jumbo Loan Requirements (2026)
Credit Score: 700+ (720+ Preferred)
Minimum: 700 credit score (some lenders accept 680 with higher rate)
Down Payment: 20% Minimum
Standard: 20% down payment required (no PMI)
Example: $1M home = $200K down payment (20%)
Debt-to-Income: 43% Max (36% Preferred)
DTI = (Total monthly debts ÷ Gross monthly income) × 100
Example Calculation:
36% or lower: Best approval odds
37-43%: Possible with strong credit/reserves
Above 43%: Denied (pay off debts first)
Cash Reserves: 6-12 Months PITI
Must have 6-12 months of mortgage payments in savings (principal, interest, taxes, insurance)
Example:
Acceptable reserves: Checking, savings, 401(k), stocks, bonds (must be liquid)
Income Documentation: 2 Years Required
Must provide extensive income verification:
- • 2 years tax returns (personal + business if self-employed)
- • 2 months pay stubs (W-2 employees)
- • 2 years W-2s
- • 2 months bank statements (all accounts)
- • Profit & loss statement (self-employed, current year)
- • Employment verification letter
Jumbo Loan Rates 2026
Current Jumbo Rates: 6.50-7.00%
| Loan Type | Rate Range | vs Conforming |
|---|---|---|
| Conforming 30-Year | 6.09-6.25% | Baseline |
| Jumbo 30-Year | 6.50-7.00% | +0.25% to +0.75% |
| Jumbo 15-Year | 6.00-6.50% | +0.25% to +0.50% |
| Jumbo 7/1 ARM | 6.25-6.75% | +0.25% to +0.50% |
💡 Why Jumbo Rates Are Higher:
- • No Fannie/Freddie backing: Lender takes 100% of risk
- • Larger loan amounts: More money at risk if default
- • Less liquidity: Harder to sell jumbo loans on secondary market
Frequently Asked Questions
Can I get a jumbo loan with 10% down?
Yes, but expect higher rate + PMI. Most jumbo lenders allow 10-15% down, but you'll pay 0.25-0.50% higher rate + jumbo PMI (0.25-0.50% annually). Example: $1M loan, 10% down ($100K) = 6.75% rate + 0.35% PMI vs 20% down ($200K) = 6.50% rate, no PMI. Monthly difference: $400-600/month more with 10% down. Recommendation: Put 20% down if possible to avoid PMI and get best rate.
What's the maximum jumbo loan amount?
No official maximum, but practical limit is $5-10M. Most lenders cap jumbo loans at $2-3M. Above $3M: Need private bank or portfolio lender (fewer options, higher rates). Above $5M: Very limited lenders, may require 30-40% down. Super jumbo ($10M+): Private banking only, custom terms. Tip: If you need $3M+, work with jumbo specialist lender (not big banks).
Can I use gift funds for jumbo loan down payment?
Yes, but limited to 10-20% of down payment. Most jumbo lenders allow gift funds from family, but you must contribute majority from your own funds. Example: $200K down payment (20% on $1M) = max $20K-$40K gift, $160K-$180K your own funds. Requirements: (1) Gift letter from donor, (2) Proof of donor's funds, (3) Bank statement showing gift deposited. Exception: Some lenders allow 100% gift if you have strong credit (740+) and high reserves.
How long does jumbo loan approval take?
45-60 days average (longer than conforming's 30-45 days). Timeline: Week 1-2: Application + document collection (extensive), Week 3-4: Underwriting (stricter review), Week 5-6: Appraisal (jumbo appraisals more detailed), Week 7-8: Final approval + closing. Delays: Self-employed income (add 1-2 weeks), multiple properties (add 1 week), complex assets (add 1 week). Tip: Get pre-approved 60-90 days before house hunting to avoid delays. See pre-approval timeline.
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