Jumbo Home
Loans
When your dream home exceeds conforming loan limits, jumbo financing makes it possible. Tailored solutions for luxury properties and high-value real estate.
Last updated: March 2026
What Is a
Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2025, any loan above $766,550 in most of the U.S. (or above $1,149,825 in designated high-cost areas) is classified as a jumbo loan. Because these loans cannot be purchased by Fannie Mae or Freddie Mac, they carry different requirements and are held by lenders or sold to private investors.
High-Value Properties
Jumbo loans are designed for properties that exceed the conforming loan limits. In Southern California, where median home prices frequently surpass $800,000, jumbo financing is essential for many buyers.
- Loan amounts from $766,551 to $3M+
- Single-family homes and condos
- Second homes eligible
- Investment properties (select programs)
Competitive Rates
Contrary to popular belief, jumbo loan rates are often comparable to — or even lower than — conforming loan rates. Lenders compete aggressively for high-value borrowers, driving rates down.
- Rates often match conforming loans
- Fixed and adjustable options
- Interest-only periods available
- Rate lock options up to 90 days
Flexible Structures
Jumbo loans offer more variety in loan structures than standard mortgages. Choose from fixed-rate, adjustable-rate, interest-only, or hybrid options tailored to your financial strategy.
- 15, 20, or 30-year fixed terms
- 5/1, 7/1, 10/1 ARM options
- Interest-only for 5-10 years
- Piggyback loan structures
Jumbo Loan
Requirements
Because jumbo loans carry more risk for lenders, the qualification standards are stricter than conforming loans. Here is what lenders typically require to approve jumbo financing.
Credit Score: 700+ Typically Required
Most jumbo lenders require a minimum credit score of 700, with the best rates reserved for 740 and above. Some programs accept 680, but options are more limited and rates are higher.
Down Payment: 10-20% Minimum
Most jumbo loans require at least 10% down, with 20% being the standard. Some programs offer 10% down with no PMI, while others may require 15-20% for the most competitive rates.
Cash Reserves: 6-12 Months Required
Lenders want to see significant liquid assets after closing. Expect to need 6 to 12 months of mortgage payments in cash reserves — that is savings, stocks, bonds, or retirement accounts.
Debt-to-Income: 43% Maximum
Your total monthly debts (including the new mortgage) should not exceed 43% of your gross monthly income. Some lenders allow up to 45% with strong compensating factors like high reserves.
Jumbo Loan
Rate Landscape
The jumbo loan market has evolved significantly. Today, rates are highly competitive and the gap between jumbo and conforming rates has narrowed considerably.
Rate Parity with Conforming Loans
In the current market, jumbo rates frequently match or even beat conforming loan rates. Lenders value jumbo borrowers for their strong financial profiles, and competition among jumbo lenders drives rates down. With a 740+ credit score and 20% down, you may see rates at or below the conforming market average.
ARM Advantages for Jumbo Borrowers
Adjustable-rate mortgages are particularly popular in the jumbo space. A 7/1 or 10/1 ARM can offer initial rates 0.5% to 1.0% below fixed-rate options, saving thousands per year. If you plan to sell or refinance within 7-10 years, an ARM can be a strategic choice.
Rate Buydown Options
Jumbo lenders often offer aggressive rate buydown options. Paying points upfront (each point is 1% of the loan amount) can permanently reduce your rate by 0.25% or more. On a $1 million loan, this can save substantial money over the life of the loan.
Relationship Pricing
Many banks and lenders offer rate discounts for jumbo borrowers who establish or maintain a relationship — such as holding deposits, investments, or other accounts with the institution. These discounts can range from 0.125% to 0.375% off the standard rate.
Who Needs a
Jumbo Loan?
Jumbo loans serve borrowers purchasing homes that exceed conventional conforming limits. In California, where home prices regularly exceed $1 million, jumbo financing is a common and essential tool for homebuyers.
Whether you are purchasing a luxury estate, a home in a high-cost metro area, or a large multi-family property, Theós Financial has deep experience in the jumbo market and relationships with specialized lenders who cater to high-value borrowers.
Ready for
Jumbo Financing?
Our jumbo loan specialists work with an exclusive network of lenders who offer the most competitive rates and terms for high-value mortgages. Let us find the optimal jumbo solution for your next home purchase.