Jumbo Loan

A jumbo loan is a non-conforming mortgage with a loan balance that exceeds the maximum annual conforming limit established by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac backing. Because jumbo loans cannot be purchased or guaranteed by government-sponsored enterprises, lenders maintain tighter underwriting criteria. Qualification generally requires higher credit scores (typically 700+), debt-to-income ratios under 43%, down payments between 10% and 20%, and between 6 to 12 months of liquid post-closing asset reserves.