Jumbo Loan Limits for 2025

What Is the Jumbo Loan Limit for 2025?

The minimum jumbo loan limit ranges from $806,000 to $1,209,750 for single-unit property mortgages originating in 2025, depending on location. Mortgages that exceed these limits don't meet the criteria for conforming loans and are considered jumbo loans. The Federal Housing Finance Agency (FHFA) establishes jumbo loan limits and updates them on a yearly basis based on local median home values.

Jumbo Loan Limits by State

The FHFA sets loan limits on a county-by-county basis. In most states, all counties have the same limits. Home prices vary significantly by location, however, and even neighboring counties may have different limits. You can find your county's jumbo loan limit on the FHFA's Conforming Loan Limit Values Map.

What Is the Purpose of Jumbo Loan Limits?

Lenders often sell mortgages to government-sponsored entities (GSEs) Fannie Mae and Freddie Mac, who, in turn, sell them to investors as mortgage-backed securities. The process helps promote lending and reduces lender risk from borrowers who cannot make their payments.

But the GSEs won't buy just any loans; they only purchase loans that fall within the FHFA's established loan limits. Lenders must keep loans that exceed those limits, increasing their risk if the borrower defaults.

What Are the Requirements for a Jumbo Loan?

Requirements for jumbo loans are often more stringent than those for conforming loans because of the loan size. Here's what you need to know.

• Down payment: While you may be able to get a conventional loan with a down payment as low as 3%, you'll need to set aside significantly more to qualify for a jumbo loan. Lenders commonly require down payments of 20% of the purchase price, but you may need to put down more or less, depending on other factors such as your credit scores and cash reserves.
• Credit scores: Borrowers typically need credit scores of at least 700 for a jumbo loan, but you may need higher scores depending on the kind of jumbo loan you get, property you're buying and lender requirements. Generally, higher credit scores improve your chances of qualifying and may result in a lower interest rate.
• Income: You'll need to show the lender that you have predictable income and a stable job that's unlikely to be in jeopardy for the foreseeable future.
• Cash and investments: Because loan amounts are so high, lenders want to know that you have enough money on the sidelines to make your payments if you experience a financial emergency.
• Debt-to-income ratio (DTI): Your DTI is the relationship between your monthly debt payments and your monthly income. It indicates how much room you have in your budget to take on additional debt. Lenders typically don't want to extend credit to borrowers whose finances are stretched to the max and generally require a DTI of 43% or less.

How to Apply for a Jumbo Loan

Applying for a jumbo loan is similar to applying for any mortgage. Here's how to get started.

1. Review your credit reports. Before applying, check your credit reports to better understand your credit health. If you find information in your credit reports you believe to be inaccurate, you have the right to dispute it. You can check your reports from all three consumer credit bureaus (Experian, TransUnion and Equifax) for free once a week at AnnualCreditReport.com and you can check your Experian credit report anytime.
2. Check your credit scores. You can check your FICO^® Score^Θ for free from Experian anytime. If your scores aren't above 700, you may want to improve them before applying to increase your chances of qualifying for a jumbo loan.
3. Compare rates. Shop around to get quotes from multiple lenders. When you're rate shopping for a mortgage, all credit inquiries related to your loan that occur within a specific time frame count as a single inquiry. The window varies based on the scoring model, but it's best to keep applications within a two-week period to minimize any impact.
4. Get preapproved. After reviewing your offers, select the one that best fits your needs and get preapproved. A preapproval isn't a formal loan offer, but it can give you an estimate of your interest rate and the loan amount you may qualify for, which can help you create a realistic housing budget. Additionally, it shows sellers you're serious and will likely be able to secure the financing you need to buy a home.
5. Get your down payment together. Jumbo loans require sizable down payments. Set aside the cash you'll need so it's ready when you find your dream home.
6. Find your dream home. When you find the house that's right for you, make the sellers an offer. If it's accepted, submit a formal loan application to your lender.
7. Apply for a mortgage. Follow your lender's process for submitting your application—most can be completed online. You'll need to provide personal, employment and income information and upload the documents your lender requests, which may include pay stubs, tax returns, W-2 forms, bank statements, investment statements and more.
8. Close on your loan. It generally takes 30 to 60 days from when the seller accepts your offer until the loan closes. You need to have your down payment and closing costs ready and meet all lender requirements. Closing costs on jumbo loans tend to be higher than on conforming loans because of the loan size. Your lender will send you a closing disclosure at least three business days before settlement with your loan details, including costs you're responsible for at closing.

The Bottom Line

Jumbo loans offer increased purchasing power to buyers in high-cost areas and those looking to buy larger, more expensive properties. The tipping point from conforming to jumbo loan varies based on where you live, with higher limits in areas with higher median home values.

While jumbo loans can provide the financing necessary to purchase pricier homes, they may be more difficult to obtain. Lenders typically have stricter lending criteria for jumbo loans than conforming loans to help offset the added risk they take on.