What is a jumbo loan?
Most mortgages in the U.S. are "conforming" loans — meaning they fall within the limits set by Fannie Mae and Freddie Mac. In 2026, that limit is $832,750 for most of Washington, Oregon, and California (higher in some high-cost counties).
A jumbo loan is any mortgage that exceeds those limits. If you're buying a home priced above the conforming threshold — whether it's a larger family home, a waterfront property, or a move-up purchase — a jumbo loan is likely the right path.
Here's the thing: jumbo loans have a reputation for being complicated and expensive. They don't have to be. As an independent broker, I work with lenders who specialize in jumbo financing, which means I can often find rates and terms that are more competitive than what you'd get walking into a single bank.
How jumbo loans compare
| Feature | Jumbo Loan | Conforming Loan |
|---|---|---|
| Loan Amount | Above $832,750 (most areas) | Up to $832,750 |
| Down Payment | Typically 10–20% | As low as 3% |
| Credit Score | Usually 700+ | 620+ |
| Interest Rates | Competitive (varies by lender) | Standardized |
| PMI | Often not required with 20% down | Required if < 20% down |
| Reserves | 6–12 months typically required | Varies |
| Documentation | More thorough | Standard |
Who typically uses a jumbo loan?
Jumbo loans aren't just for luxury properties. You might need one if:
- •You're buying in a higher-priced market. In areas like Portland's West Hills, Lake Oswego, Camas, or parts of the Oregon and Washington coast, home prices regularly exceed conforming limits.
- •You're upgrading to a larger home. Growing family, home office needs, or simply ready for more space — if the price tag goes above the conforming limit, a jumbo loan gets you there.
- •You're a high-income professional. Doctors, attorneys, business owners, and tech professionals often have the income to support a jumbo loan but want guidance on the best structure.
- •You're purchasing a second home or vacation property. Higher-end second homes frequently require jumbo financing.
What you should know before applying
Down payment: Most jumbo lenders require 10–20% down, though some programs allow as little as 5% for well-qualified borrowers. The more you put down, the better your rate tends to be.
Credit requirements: Jumbo loans typically require a credit score of 700 or higher, though some lenders will work with scores in the 680 range depending on other factors like reserves and debt-to-income ratio.
Cash reserves: Lenders want to see that you have 6 to 12 months of mortgage payments in liquid assets after closing. This is one of the biggest differences from conforming loans.
Debt-to-income ratio: Most jumbo lenders cap your DTI at 43%, though some allow up to 45% with strong compensating factors.
Property appraisal: Jumbo loans often require a more rigorous appraisal process, and some lenders may require two appraisals for higher loan amounts.
The jumbo loan process with Jeff
Free consultation
We talk about the property you're looking at (or planning to look at), your financial picture, and what kind of terms matter most to you.
I shop the market
Because jumbo loan rates and guidelines vary significantly between lenders, this is where having a broker makes a real difference. I compare options from multiple jumbo lenders to find you the best fit.
Pre-approval
You get a pre-approval letter that tells sellers you're a serious, qualified buyer — which matters a lot in the higher-priced market where jumbo loans are common.
Underwriting & processing
Jumbo loans require more documentation than conforming loans. My team handles the coordination so you're not chasing paperwork alone.
Closing day
You sign with confidence, knowing you got the best deal available — not just the one deal your bank offered.