| Feature | Conventional | Jumbo |
|---|---|---|
| Loan amount | Up to $766,550 (or $1,149,825 in high-cost areas) | Above conforming limits |
| Credit score | 620 minimum (740+ best) | 700+ minimum (740+ best) |
| Down payment | 3-5% minimum | 10-20% typical |
| DTI cap | 45-50% | 43% typical |
| Cash reserves | 0-2 months typical | 6-12 months typical |
| PMI | Required below 20% down (cancels at 78-80% LTV) | Required below 20% down (varies) |
| Underwriting | Automated (Fannie DU / Freddie LPA) | Often manual; full documentation required |
| Rate vs conforming | Baseline market rate | Often equal or slightly lower than conforming today |
The complete picture
The line between conventional and jumbo is the conforming loan limit — $766,550 in most U.S. counties for 2026, up to $1,149,825 in high-cost areas. Loans at or below the limit are conforming and can be sold to Fannie Mae or Freddie Mac. Above the limit, you need a jumbo loan kept on the lender's books or sold to private investors.
Jumbo underwriting is stricter than conforming. Expect 700+ credit, 10-20% down, 6-12 months of cash reserves after closing, and full income documentation. Some jumbo lenders require two appraisals on properties above $1.5M. The tradeoff is that loan amounts can go to several million dollars with competitive pricing.
Pricing surprises many borrowers. Jumbo rates have been competitive with — sometimes lower than — conforming rates for years, because lenders aggressively compete for high-net-worth borrowers and the underlying loans are kept on portfolio rather than securitized. Always get both quotes if you're at or near the conforming limit.
Frequently asked questions
Can I avoid jumbo by putting more money down?+
Yes. If your loan amount is just over the conforming limit, putting an extra 5-10% down can bring the loan balance under the limit and qualify it as conforming. The savings in rate and underwriting flexibility often justify the larger down payment, especially in transitional brackets.
Are jumbo loans available for investment properties?+
Yes. Most jumbo lenders offer investment-property jumbo loans, though down payment requirements increase (typically 25-30%) and rate pricing is higher. DSCR loans are an alternative for investors who can't fully document personal income.
What about super-jumbo?+
There's no formal 'super jumbo' classification, but lenders informally use the term for loans above $2-3M. These typically require even more reserves (12+ months), multiple appraisals, and may be priced through private banking groups rather than retail mortgage. Quotes are highly individualized.
Do jumbo lenders allow ARM products?+
Yes. Many jumbo borrowers use 7/6 or 10/6 ARMs to get a lower initial rate, especially when they don't plan to keep the home for 30 years. Jumbo ARMs are sometimes priced significantly below conforming ARMs given the more competitive private market.