Jumbo loans: how to finance a home above the conforming loan limit

What is a jumbo loan, and where does it start?

Every year, the Federal Housing Finance Agency sets the largest loan Fannie Mae and Freddie Mac can buy. For 2026, the baseline limit for a one-unit home is $832,750. In designated high-cost areas, the ceiling is $1,249,125. A loan above the limit for its county is a jumbo loan, also called a non-conforming loan.

These limits are for the contiguous states, DC and Puerto Rico, per Fannie Mae and FHFA.

What is the jumbo loan limit in Georgia?

Every Georgia county is at the baseline limit for 2026. So in Georgia there's no “high-balance conforming” middle ground. A one-unit loan above $832,750 is a jumbo loan, whether the home is in Alpharetta, Savannah or anywhere else in the state. In Alabama and Florida, check FHFA's county lookup, because limits are set county by county.

What matters is the loan amount, not the price of the home. A buyer with a lot of equity or a large down payment on an expensive home may stay under the conforming limit. A buyer with a smaller down payment on the same home may not.

How does a jumbo loan get approved?

Conforming loans follow a public rulebook. Jumbo loans follow the rules of whichever investor will buy or hold the loan. Those rules differ on almost everything: minimum credit scores, savings requirements, debt limits, appraisals, eligible property types and how certain income is counted.

Federal law doesn't change, though. Under the CFPB's Ability-to-Repay rule (Regulation Z, 12 CFR 1026.43), the lender must make a reasonable, good-faith judgment that you can repay the loan. It looks at things like your income or assets, job, monthly payment, other debts and credit history, checked against reliable records.

1. Program matching. I look at you and the home, then find which investor's rules fit best. This step matters more for jumbo than for any other loan type.
2. Full documentation. Income, savings and credit are usually documented in depth. Many jumbo programs are reviewed by hand (manually underwritten) or use the investor's own computer tools.
3. Appraisal review. Higher-priced homes often have fewer similar nearby sales to compare. Some investors require an extra appraisal review or a second appraisal above certain loan amounts.
4. Underwriting and conditions. Expect detailed questions about deposits, income trends and liquid reserves (savings you can get to quickly).
5. Closing. In Georgia, a closing attorney conducts the closing, and the attorney's firm handles title and the entire transaction.

Who needs a jumbo loan?

• Buyers of higher-priced homes whose loan amount is above the county limit.
• Executives and professionals with salary plus bonus, commission, or stock pay such as restricted stock units (RSUs).
• Self-employed business owners with strong tax returns. If your tax returns don't show your real cash flow, compare bank statement loans.
• Move-up buyers who are also selling their current home.
• Homeowners refinancing an existing jumbo loan, or doing a cash-out refinance on a high-value home.
• Second home buyers, where the investor allows it.

How do you qualify for a jumbo loan?

How much savings (reserves) do you need?

Reserves are the money you have left after closing. They're often counted in months of your full house payment (principal, interest, taxes, insurance and HOA dues). Jumbo investors usually want more reserves than conforming loans. The amount can go up with loan size, how many properties you own, or how you'll use the home.

Retirement and investment accounts may count, sometimes at a reduced value. The exact requirement depends on the investor.

What credit score do you need for a jumbo loan?

Jumbo credit standards are usually stricter than Fannie Mae and Freddie Mac standards. Minimum scores vary by investor, loan size and loan-to-value (your loan amount compared to the home's value). One recent late payment can matter more on a jumbo loan than on a conforming one.

What debt-to-income ratio do you need?

Your DTI (debt-to-income ratio) is how much of your monthly income goes to debt payments. Many jumbo programs set a lower DTI limit than Fannie Mae's DU system does. The limit can depend on your credit and savings. I always ask early about other real estate you own, because those payments count.

What income counts for a jumbo loan?

Steady, documented income is the core. For income that goes up and down, underwriters usually want a history and signs it will continue. Stock pay (such as RSUs) can sometimes be used. But investors differ on how much vesting history they want, how they treat future vesting and how they handle swings in stock price. Self-employed borrowers should expect a full tax return review on most traditional jumbo programs.

Why do large deposits matter?

Jumbo underwriters read bank statements closely. Large deposits, transfers between accounts and recently sold investments all need a clear paper trail. If you're moving money around before buying, talk to me first so we keep the trail clean.

What documents do I need for a jumbo loan?

• Recent pay stubs and W-2s, and often two years of federal tax returns
• Business tax returns and year-to-date financials for business owners, when required
• Stock pay statements and vesting schedules, if using RSU or similar income
• Complete statements for bank, brokerage and retirement accounts
• Paperwork for large deposits and any recently sold assets
• Mortgage statements, insurance and tax information for other properties you own
• Settlement statement or listing agreement if you're selling your current home

How much do I need for a down payment on a jumbo loan?

Each investor sets its own jumbo down payment rules. They often depend on loan size, credit, savings, how you'll use the home and property type. In general, the more equity you bring, the more programs you'll fit. Jumbo loans usually don't use mortgage insurance, so your equity is the investor's main protection.

A good question to ask: should more cash go into the down payment or stay in savings? On jumbo loans, reserves can carry real weight with the underwriter. So the answer isn't always “put down as much as possible.” The down payment calculator and mortgage payment calculator can help you compare.

What are the benefits of a jumbo loan?

• Financing above conforming limits in one loan.
• Generally no mortgage insurance.
• A range of options, including fixed-rate and adjustable-rate loans depending on the investor.
• Flexibility on how you use the home with some investors, including second homes.
• Room for complex income, when documented, with investors that understand it.

What are the downsides of a jumbo loan?

• Harder to qualify on credit, savings and debt ratios than most conforming loans.
• More paperwork and closer review, which can mean more conditions during underwriting.
• Appraisal risk. Unique or high-end homes can be harder to value, and some investors require an extra appraisal review.
• Each investor has its own rules. A “no” from one program isn't always a “no” everywhere. And a “yes” from one program doesn't carry over to another.
• Availability changes. Investor interest in jumbo loans shifts with the market.

Jumbo loan vs. other options: which is better?

Before you commit to a jumbo, it's worth comparing a few other options:

Questions about any of these? Start with the mortgage FAQ or reach out.

Common questions about jumbo loans

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