Jumbo Loan
mortgageAlso known as: jumbo loan, jumbo mortgage
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
Jumbo loans are held in the lender's portfolio (not sold to Fannie/Freddie), so lenders set their own underwriting: typical requirements include 700+ credit score, 20-25% down payment (some lenders accept 10%), 6-12 months of mortgage reserves in liquid assets, lower DTI ratios (usually <43%). 2026 jumbo rates typically 0.10-0.40% above conforming, though specific lenders may price aggressively to attract high-net-worth clients. Most CA Bay Area, NYC, and Hawaii buyers face jumbo unless their loan is under $1.25M.
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Related mortgage terms
PITI (Principal, Interest, Taxes, Insurance)
PITI is the four components of a typical monthly mortgage payment: Principal (loan paydown), Interest (lender fee), Taxe...
Private Mortgage Insurance (PMI)
PMI is insurance protecting the lender if you default on a conventional mortgage with less than 20% down. PMI premiums a...
Debt-to-Income Ratio (DTI)
DTI is the percentage of your monthly gross income that goes to debt payments. Lenders use front-end DTI (housing only ≤...
Amortization
Amortization is the gradual paying down of loan principal over time through scheduled monthly payments. Each payment inc...
Home Equity Line of Credit (HELOC)
A HELOC is a revolving credit line secured by your home equity. Like a credit card, you borrow against an approved limit...
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