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If you’re in the market for an expensive, luxury home, one of your main borrowing options will be jumbo loans. Jumbo loan terms and interest rates vary widely by lender, so it pays to compare. Before you apply near or above the million-dollar mark, though, learn how the jumbo loan limit works.
Check your home buying eligibility. Start here (Nov 2nd, 2026)
What is a jumbo loan?
Let’s start with what makes a jumbo loan jumbo. In order to qualify, a home loan must exceed the Fannie Mae and Freddie Mac conforming loan limits. Those limits generally max out at $832,750. In some other higher-priced real estate areas, that maximum can climb to $1,249,125.
Fannie Mae and Freddie Mac buy loans up to the conforming loan limits. The Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) insure or guarantee loans under their own rules. Jumbo loans go beyond conforming dollar limits, so Fannie Mae, Freddie Mac and FHA don’t buy or insure them. Rather, private lenders create, examine, and approve jumbo loans. A veteran with full VA entitlement, however, may qualify for a VA-backed loan above the conforming limits.
Private lenders determine jumbo mortgage guidelines
Lender terms will vary widely since lenders are the ones most on the hook for the loan amount. In other words, banks are picky about the kind of borrowers who will qualify. Those qualifications become stricter as the amount of the loan increases.
Suppose, though, that you have an excellent credit score and a steady, high income with not much debt. In that case, some lenders may offer you favorable interest rates that are comparable to conforming loans.
Michael Kinane led Mortgage and Consumer Lending Products at TD Bank in 2014. “Jumbos don’t have a loan limit but at a certain point do require additional approval beyond standard guidelines,” he said.
Of course, banks and lenders do lend out more as long as borrowers meet certain stipulations. “As loan amounts increase, higher FICOs and lower LTVs [loan-to-value ratio] are required,” said Kinane. Interest rates will also creep up slightly depending on the amount of down payment and the borrower’s credit score.
What is the jumbo loan limit?
Some quick research reveals that bank-imposed jumbo loan limits vary by lender. For example, as of 2026, HSBC lists jumbo mortgages up to $5 million. Unlike loans sold to GSEs, though, there is no true jumbo loan limit, said Kinane. Here, GSEs (government-sponsored enterprises) means Fannie Mae and Freddie Mac.
That’s why it’s important to do your research on jumbo loan lenders. “The maximum financing allowed will be up to each lender to decide in accordance with their own risk tolerances,” said Kinane. “Most lenders will internally set a limit by which loan approval would require either executive and/or committee approval, in addition to standard underwriting procedures.”
Jumbo mortgage credit score & down payment requirements
As Kinane pointed out in 2014, most jumbo lenders’ guidelines get more and more restrictive as the requested loan amount increases. They require higher FICOs and higher down payments. So for lower jumbo loan amounts, the requirements could appear similar to loans sold to GSEs. At higher amounts (say, $1 million), however, minimum down payment requirements could rise from 10-20 percent to 30 percent. Minimum FICOs could also go from 660-680 to 700-720.
“It would not be unheard of for multimillion dollar loans to have a [maximum] LTV of 50 percent and a minimum FICO of 740,” said Kinane.
Apply for a jumbo loan
Say you have stellar credit and a good chunk of change to use as a down payment on your dream home. Then there are jumbo mortgage programs out there for you. By comparing lenders’ programs, you can weigh their rates and find a jumbo loan limit that covers the funding you need.
Check your home buying eligibility. Start here (Nov 2nd, 2026)
