Whether the home you’re buying requires a jumbo loan depends on where you live.
A jumbo loan is a mortgage that exceeds the conforming loan limit set for the area where the property is located.
That’s why there is no single dollar amount that defines a jumbo mortgage nationwide: The Federal Housing Finance Agency updates conforming loan limits annually based on local home prices, and those limits vary by county.
When a mortgage amount goes above the local limit, it becomes a nonconforming loan because it cannot be sold to Fannie Mae or Freddie Mac. That can make a big difference to your wallet: Jumbo loans generally require higher down payments and stricter underwriting compared to conventional loans.
If you are shopping near the top of your local market, understanding your county’s conforming loan limit is the first step to knowing whether you are in jumbo territory.
Understanding Jumbo Loans and Conforming Loan Limits
A jumbo loan is any mortgage that exceeds the conforming loan limit for its location. The conforming loan limit is the maximum loan size that Fannie Mae and Freddie Mac are allowed to purchase. Loans above that amount fall outside their guidelines and are classified as jumbo.
The FHFA reviews and updates these limits annually to reflect changes in home values. Because home prices vary widely across the country, the limits vary as well.
For 2026, single-unit conforming loan limits range between $832,750 and $1,249,125. Most counties are set to the baseline limit, but limits can vary between those two ranges.
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Area Type
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2026 Conforming Loan Limit
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Most U.S. counties
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$832,750
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High-cost counties
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$1,249,125
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Your exact limit depends on your county, not your state. Two neighboring counties can have very different thresholds.
Take Maryland near the D.C. area. Howard County, despite having a booming housing market and many high-cost homes, has the baseline conforming limit of $832,750. Neighboring Frederick and Montgomery counties have a higher conforming limit of $1,249,125.
Coastal markets and major metro areas often have elevated limits, but prices in those regions can still exceed the maximum. Alaska and Hawaii also have higher statutory limits, yet jumbo loans are common there due to property values. Rapidly appreciating markets can see buyers pushed into jumbo territory even after limits rise.
Keep in mind that some counties have only slightly higher conforming limits than the baseline. Grand County, Utah, has a conforming limit of $839,500.
That’s why it’s important to check your county’s limit with the official FHFA limits.
Jumbo vs. Conforming Loans
You’ll hear two main terms when it comes to most mortgages: conforming and conventional.
Jumbo loans are nonconforming, meaning they are not eligible for purchase by Fannie Mae or Freddie Mac. Because lenders typically retain more risk with nonconforming loans, jumbo loans usually come with stricter qualification standards. That means higher down payments and income requirements.
A conventional mortgage simply refers to any non-government loan. Most conventional loans are conforming, but jumbo loans are also conventional, just nonconforming. Examples of non-conventional loans are VA, USDA, or FHA loans.
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Feature
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Conforming Loan
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Jumbo Loan
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Loan size
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At or below county limit
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Above county limit
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GSE eligibility
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Eligible for purchase
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Not eligible
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Credit score expectations
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Often 620 or higher
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Often 700 or higher
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Down payment norms
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As low as 3% to 5% in some cases
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Commonly 10% to 20%
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Cash reserves
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Limited or modest
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Often several months of payments required
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Documentation
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Standard underwriting
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More extensive review
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Mortgage insurance
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Common below 20%
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Often not used
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Exact requirements vary by lender and borrower profile.
Qualification Requirements for Jumbo Loans
Jumbo loan qualification typically focuses on overall financial strength. Lenders often look for higher credit scores, stable income, and strong asset positions compared with conforming loans.
Down payment expectations are usually higher, though some lenders offer lower down payment options for well-qualified borrowers. Debt-to-income ratios are often tighter, and lenders may require borrowers to hold several months of mortgage payments in reserves after closing.
Documentation requirements are also more detailed, with closer scrutiny of income sources and assets. For very large loan amounts, sometimes called super jumbo loans, underwriting standards are often even more conservative.
Jumbo Loan Costs and Interest Rates
Jumbo loan pricing is not standardized because these loans are not backed by government-sponsored enterprises. Rates are influenced by broader market conditions and each lender’s appetite for high-balance lending.
Depending on the borrower and the lender, jumbo interest rates can be similar to, slightly higher than, or occasionally lower than conforming rates. Closing costs are often higher in dollar terms because the loan amounts are larger, even if fee percentages are similar.
Mortgage insurance is less common on jumbo loans. Instead, lenders often account for risk through pricing adjustments, reserve requirements, or stricter underwriting.
The Bottom Line
A jumbo loan exceeds county conforming limits set by the federal government. That typically means stricter underwriting, higher income requirements, and larger down payments. Many lenders require down payments of 10% or more to qualify for a jumbo loan.
What counts as a jumbo loan varies by where you live, so check official FHFA guidance to verify whether the home you’re buying will require a jumbo loan.
Frequently Asked Questions
What Loan Amount Qualifies as a Jumbo Loan?
A loan becomes jumbo when it exceeds the conforming loan limit for the county where the property is located. For 2026, that is $832,750 in most areas and up to $1,249,125 in high-cost counties.
Why Does Jumbo Status Depend on Location?
Conforming loan limits are based on local home prices. Higher-cost areas have higher limits, while lower-cost areas have lower caps.
What Are Typical Jumbo Loan Requirements?
Many lenders look for credit scores around 700 or higher, down payments of 10% to 20%, lower debt-to-income ratios, and several months of cash reserves.
Is a 20% Down Payment Required?
Not always. Some lenders allow lower down payments for strong borrowers, but larger down payments often improve approval odds and pricing.
Can Jumbo Loans Be Used for Refinancing?
Yes. Jumbo loans can be used for both purchases and refinances, with similar qualification and documentation standards.
