Loan types
Jumbo loans and 2026 loan limits
Quick answer
In 2026, a jumbo loan is a mortgage above the conforming limit of $832,750 for a one-unit home in most U.S. counties, or up to $1,249,125 in high-cost areas. Jumbo loans typically need a credit score of 700 or higher, 10% to 20% down, six to twelve months of payments in reserves, and a debt-to-income ratio around 43% or lower.
Loan limits decide which mortgage programs you can use. Stay under the conforming limit and you get Fannie Mae and Freddie Mac pricing and guidelines. Go over it and you need a jumbo loan, with stricter rules. The limits rise most years with home prices.
2026 loan limits (one-unit homes)
| Loan type | Most counties | High-cost counties |
|---|---|---|
| Conforming (Fannie/Freddie) | $832,750 | Up to $1,249,125 |
| FHA | $541,287 (floor) | Up to $1,249,125 |
| VA | No limit with full entitlement | No limit with full entitlement |
Limits are higher for 2–4 unit properties and in Alaska, Hawaii, Guam and the U.S. Virgin Islands. Look up your county on the FHFA or HUD websites.
What makes a loan "jumbo"
It's the loan amount, not the price. A $1,000,000 home with 20% down has an $800,000 loan — conforming in most counties. The same home with 10% down needs a $900,000 loan, which is jumbo in most counties.
Typical jumbo requirements
- Credit score: often 700 or higher; the best pricing at 740+
- Down payment: usually 10% to 20%, sometimes more on larger loans
- Reserves: six to twelve months of mortgage payments in savings or retirement accounts after closing
- DTI: generally 43% or lower
- Documentation: full income documentation; sometimes a second appraisal for very large loans
Each lender sets its own jumbo guidelines, so requirements vary more than for conforming loans.
Jumbo vs conforming rates
Jumbo rates aren't always higher. Depending on the market and lender, they can be similar to or even below conforming rates for strong borrowers. Compare Loan Estimates from banks, credit unions and mortgage lenders.
A real example
A buyer in a county with the $832,750 limit is purchasing for $950,000. With 10% down, the $855,000 loan is jumbo. By putting down $117,250 (about 12.3%), the loan drops to exactly $832,750 and qualifies as conforming. Another option is a piggyback: a conforming first mortgage plus a second mortgage for the remainder.
Ways to avoid a jumbo
- Increase your down payment to bring the loan under the limit
- Use a first mortgage at the limit plus a home equity loan or HELOC
- Check whether your county is high-cost, with a higher limit
- VA borrowers with full entitlement have no limit
Frequently asked questions
Do jumbo loans require PMI?
Many jumbo programs require 20% down to avoid mortgage insurance, while some allow 10% down without PMI at a higher rate. Policies vary by lender.
When do loan limits change?
FHFA and HUD announce new limits each fall, usually in late November or December, effective January 1.
Can I get an FHA jumbo loan?
Not above the FHA limit for your county. In high-cost counties the FHA limit can be as high as $1,249,125, so some higher-priced homes still qualify.
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