Jumbo Loan Requirements 2026: Rates, Limits & How to Qualify
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Jumbo loans in 2026 require 680+ credit score, 10-20% down, max 43% DTI, and 6-12 months reserves. The 2026 conforming limit is $766,550 — anything above is jumbo. Current jumbo rate: 6.15% (just 0.05% above conforming). Credit unions often offer the best jumbo rates. Compare jumbo rates →
Jumbo Loan Requirements at a Glance
| Requirement | Jumbo Loan | Conforming Loan |
|---|---|---|
| Loan Amount | Above $766,550 | Up to $766,550 |
| Credit Score | 680-700 min (720+ ideal) | 620 min |
| Down Payment | 10-20% typical | 3-5% min |
| DTI Ratio | Max 43% (some allow 45%) | Max 50% |
| Cash Reserves | 6-12 months PITI | 0-2 months |
| Documentation | Extensive (2 yr taxes, assets) | Standard |
| 30-Year Rate (Feb 2026) | 6.15% | 6.10% |
| PMI Required | No PMI (but higher rate if <20% down) | Yes if <20% down |
2026 Conforming Loan Limits by Area
| Area | 1-Unit Limit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Standard (most US counties) | $766,550 | $981,500 | $1,186,350 | $1,474,400 |
| High-Cost Areas | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| San Francisco, CA | $1,149,825 | High-cost ceiling | ||
| New York City, NY | $1,149,825 | High-cost ceiling | ||
| Los Angeles, CA | $1,149,825 | High-cost ceiling | ||
| Seattle, WA | $1,014,750 | High-cost area | ||
| Denver, CO | $816,500 | Above baseline | ||
Source: FHFA 2026 Conforming Loan Limits. Loans above your area's limit require jumbo financing.
Jumbo Loan Payment Examples
| Home Price | Down (20%) | Loan Amount | Monthly P&I | Total w/ Tax+Ins |
|---|---|---|---|---|
| $900,000 | $180,000 | $720,000 | $4,386 | $5,586 |
| $1,200,000 | $240,000 | $960,000 | $5,848 | $7,448 |
| $1,500,000 | $300,000 | $1,200,000 | $7,310 | $9,310 |
| $2,000,000 | $400,000 | $1,600,000 | $9,747 | $12,247 |
Based on 6.15% rate, 30-year fixed. Tax + insurance estimated at $1,200/mo per $1M home value.
Need a Jumbo Loan?
Compare jumbo rates from top lenders. Credit unions often beat big banks by 0.25%+.
5 Tips to Get the Best Jumbo Rate
Jumbo ARM Strategy: Save $400+/Month
| ARM Type | Initial Rate | Monthly on $1M | Savings vs Fixed | Fixed Period | Best If You Plan To |
|---|---|---|---|---|---|
| 5/1 ARM | 5.25% | $5,523 | -$570/mo | 5 years | Sell or refi in 5 yrs |
| 7/1 ARM | 5.50% | $5,680 | -$413/mo | 7 years | Sell or refi in 7 yrs |
| 10/1 ARM | 5.75% | $5,838 | -$255/mo | 10 years | Longer-term flexibility |
| 30-Year Fixed | 6.15% | $6,093 | — | 30 years | Stay 10+ years |
⚠️ ARM Risk: After the fixed period, rates adjust annually based on SOFR + margin (typically 2.75%). Worst case: your rate could increase 2% per year up to a lifetime cap (usually 5% above initial rate). A 5/1 ARM at 5.25% could theoretically reach 10.25% in year 10. Only choose an ARM if you're confident you'll sell or refinance before the adjustment period.
Self-Employed Jumbo Loan Requirements
Self-employed borrowers face extra scrutiny on jumbo loans because there's no employer to verify income. Here's what you need:
Standard Self-Employed Jumbo
- ✓ 2 years personal + business tax returns
- ✓ Year-to-date P&L (CPA-prepared preferred)
- ✓ 700+ credit score (720+ for best rates)
- ✓ 25-30% down payment
- ✓ 12 months PITI reserves
- ✓ 2 years same business or industry
- ✓ Business must show consistent or increasing income
Bank Statement Jumbo (No Tax Returns)
- ✓ 12-24 months personal or business bank statements
- ✓ 700+ credit score
- ✓ 25-30% down payment
- ✓ Rates: 0.50-1.00% higher than full-doc jumbo
- ✓ Max loan: $3M-$5M (varies by lender)
- ✓ No tax returns, W-2s, or employment verification
- ✓ Available from: New American Funding, Angel Oak, A&D Mortgage
Real Example: $1.2M Home Purchase
Scenario: Dr. & Mrs. Patel, dual income $320K, buying in Scottsdale, AZ. Credit score: 760. First-time jumbo buyers.
Option A: 30-Year Fixed (6.15%)
Option B: 7/1 ARM (5.50%)
The Patels chose Option B (7/1 ARM with 25% down). They plan to refinance within 5-7 years when rates are projected to drop. Savings: $740/month = $62,160 over 7 years.
Jumbo Loan Closing Costs
| Fee | $800K Loan | $1.2M Loan | $2M Loan | Negotiable? |
|---|---|---|---|---|
| Origination (0.5-1%) | $4,000-$8,000 | $6,000-$12,000 | $10,000-$20,000 | Yes |
| Appraisal | $500-$800 | $700-$1,200 | $1,000-$2,500 | No |
| Title Insurance | $2,000-$3,500 | $3,000-$5,000 | $5,000-$8,000 | Some |
| Attorney / Escrow | $1,000-$2,000 | $1,500-$3,000 | $2,000-$4,000 | Some |
| Recording + Transfer | $500-$2,000 | $750-$5,000 | $1,000-$10,000 | No |
| Total Estimated | $8,000-$16,300 | $11,950-$26,200 | $19,000-$44,500 | — |
Jumbo appraisals cost more because appraising luxury homes requires specialized comparables. Some lenders require TWO appraisals on loans above $1.5M.
Jumbo Rate Forecast: 2026-2027
Q1 2026 (Now)
6.15%
Q3-Q4 2026 (Projected)
5.75-5.90%
2027 (Projected)
5.50-5.75%
With the Fed projected to cut rates 2-3 more times in 2026, jumbo rates should decline 0.25-0.50% by year-end. However, jumbo rates move more slowly than conforming rates because they're set by individual lenders, not Fannie/Freddie. Strategy: If buying now, consider a 7/1 ARM at 5.50% with plans to refinance into a fixed rate in 2027-2028 when rates are lower.
Jumbo Loan Alternatives
Piggyback Loan (80/10/10)
Take a conforming first mortgage for $766,550, a HELOC or second mortgage for the difference, and put 10% down. This avoids jumbo requirements entirely while still buying a high-value home.
Conforming High-Balance
In high-cost areas, conforming limits go up to $1,149,825. These loans have easier requirements than true jumbos. Check if your county qualifies for the higher limit.
Related Guides
Editorial Note: Loan limits from FHFA. Rates from Freddie Mac PMMS and lender surveys. Updated Feb 13, 2026. Editorial standards.