Jumbo Loans

If you're looking for a luxury home or you live in an especially expensive community, you might consider getting a jumbo loan. Instead of tying up all your cash, you could qualify for a bigger loan amount than with a traditional mortgage.

The Federal Housing Finance Agency (FHFA) sets conforming loan limits every year. For 2025, the conforming loan limit for single family homes is $806,500 in most of the country and $1,209,750 in designated high-cost areas.

Because they exceed conforming limits, jumbo loans are non-conforming and are ineligible to be purchased or guaranteed by Fannie Mae and Freddie Mac. Unlike conforming loans, there are no set limits for jumbo loans. Investors offering jumbo financing can determine their own requirements, including maximum loan amounts (up to several million dollars, in some cases).

Qualifying for a Jumbo Loan:

Generally, you'll need an excellent credit score, a substantial down payment, significant cash reserves or savings, and a low debt-to-income (DTI) ratio.

Jumbo Loan Benefits:

• Enable buyers to apply for larger home loans
• More opportunity to negotiate fees and interest