A jumbo loan is a mortgage designed for financing high-value properties that exceed the maximum loan limits set by the Federal Housing Finance Agency (FHFA) for conventional conforming loans. In most counties, the 2025 limit for a conforming loan is $806,500. If a home’s price surpasses this threshold, a jumbo loan is required to cover the financing.
Jumbo loans, also known as non-conforming conventional mortgages, differ from traditional loans because they aren’t backed by Fannie Mae or Freddie Mac. This lack of government-sponsored backing means lenders take on a higher risk, making approval requirements stricter than for conforming loans.
Borrowers seeking a jumbo loan typically need:
Jumbo loans are available with fixed or adjustable interest rates, and terms vary depending on the lender. While historically, jumbo loans carried higher interest rates than conventional loans, competitive lending markets have narrowed the gap, making rates more comparable in some cases.
These loans can be used for primary residences, vacation homes, or investment properties, offering flexibility for borrowers purchasing luxury or high-value real estate.
Jumbo loans are designed specifically for high-value properties that exceed the maximum loan limits set by FHA and conventional mortgage programs. If you’re buying a luxury home or property in a competitive market, a jumbo loan can provide the financing you need—without splitting your purchase into multiple loans. These loans offer the flexibility and borrowing power required for upscale homes while maintaining competitive terms for qualified buyers.
If your desired property exceeds the conforming loan limit ($766,550 in most counties), you will likely need a jumbo loan. Loan limits vary by location, so it’s essential to check your county’s specific limit.
Yes, jumbo loans typically have stricter qualification requirements compared to conventional loans. Because they exceed the conforming loan limits set by Fannie Mae and Freddie Mac, lenders take on more risk. As a result, borrowers usually need a higher credit score (often 700 or above), a lower debt-to-income (DTI) ratio, and a larger cash reserve. At GWFR Lending, we’ll walk you through the process and help you understand what’s needed to qualify with confidence.
In most cases, jumbo loans do not require private mortgage insurance (PMI), even if your down payment is less than 20%. However, this can vary by lender and loan structure. While avoiding PMI can be a cost-saving advantage, keep in mind that stricter approval standards usually apply. At GWFR Lending, we’ll help you explore all your options and structure a loan that fits your financial goals.
Jumbo loan interest rates have historically been slightly higher than those for conforming loans, due to the increased risk to lenders. However, this isn’t always the case—rates can be competitive depending on market conditions and borrower qualifications. At GWFR Lending, we shop around to help secure the most favorable rate possible for your unique financial situation.
Yes, jumbo loans can be refinanced, whether you’re looking to lower your interest rate, reduce monthly payments, or tap into your home’s equity. Refinancing a jumbo loan may involve additional documentation and stricter requirements, but the potential savings can be well worth it. GWFR Lending offers tailored jumbo refinance solutions designed to help you make the most of your investment.
