Jumbo Loans
Mortgages designed for home buyers and homeowner’s who need a larger loan amount.
What is a Jumbo Loan
A jumbo loan is a loan that exceeds the conforming loan (conventional loan) limits as set by Fannie Mae and Freddie Mac. As of 2025, the limit is $806,500 for most of the US, apart from Alaska, Hawaii, Guam, the U.S. Virgin Islands, and other high cost areas where the limit is $1,209,750. Rates tend to be a bit higher on jumbo loans because lenders generally have a higher risk.
What Do You Need To Qualify for a Jumbo Loan
- Minimum 700 Credit Score
- Maximum 50% Debt-To-Income Ratio
- Loan Purpose: Purchase, Rate and Term Refinance, and Cash-Out Refinance
- Minimum Down Payment: 10.01%
- Property Can Be Used As: Primary Residence, Second/Vacation Home or Investment Property
- Eligible Property Types: Single Family Residences, Condos, Townhomes, Multi-Family 2 to 4 Units.
- Mortgage Payment Reserves: 6 Months
Who Are Jumbo Loans For?
Jumbo Loans are the perfect financing solution for:
- Homebuyers in high-cost real estate markets where property values exceed conforming limits
- Move-up buyers seeking larger or premium homes
- Real estate investors targeting high-value rental or investment properties
- Homeowners with substantial equity looking to refinance
- Buyers needing specialized financing for unique or high-end properties
- Borrower’s needing larger loan amounts than traditional mortgages allow
The Jumbo Loan Process and How to Get Started
What makes MacLagan Home Loans different is our approach to Jumbo Loans. With access to 100+ lending partners, we shop your loan to multiple sources to ensure you receive the most competitive rates and terms available. This personalized approach means you get a Jumbo Loan that’s perfectly tailored to your financial situation and property goals.
Starting the process is easy – simply complete our online Jumbo Loan Qualifier or schedule a consultation with one of our mortgage experts. We’ll guide you through the documentation requirements and work to find the ideal Jumbo Loan solution for your needs. Contact us today to explore how our extensive lender network can help you secure optimal financing for your high-value property!
Here’s how our home loan process works:
- Complete our simple Jumbo Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
Why a Jumbo Loan?
There are many benefits, including:
- financing available up to $5 million
- the convenience of one loan for the entire loan amount instead of having multiple mortgages
- competitive pricing and more
Get approved Quick & Easy!
Loans we offer
Your Home Loan Could Be Fully Funded 21 Days From Now Without Any Hassles!
Conventional Loans
A popular mortgage option for borrower’s with strong credit and stable income. Down payments as low as 3% and with competitive and adjustable rate options.
Read moreFHA Loans
A great mortgage option for first-time home buyers or those with limited funds. They have flexible credit requirements and offer down payments as low as 3.5%.
Read moreVA Loans
The best loan option for eligible military veterans and active duty service members. 100% financing and no mortgage insurance.
Read moreBank Statement Loans
The best mortgage option for self-employed borrowers. If you take all of your write offs on your tax returns and can’t qualify for a conventional loan, this is the perfect mortgage option for you.
Read moreDSCR Loans
Rental property loans that require no income or employment verification. The best loan for real estate investors and landlords
Read moreFix & Flip Loans
The perfect loan option for real estate investors who are looking to finance a property that needs renovation. Finance 100% of the renovation with down payments as low as 10% of the purchase price.
Read moreJumbo Loans FAQ
Do you have to put 20% down on a jumbo loan?
The 20% down payment requirement is a common misconception about jumbo loans. While some lenders do require 20% or more, others offer jumbo loans with down payments as low as 10.01% for borrowers with excellent credit scores and strong financial profiles. It’s important to note that a larger down payment typically results in better interest rates and terms.
What are the negatives of a jumbo loan?
Jumbo loans have a few potential downsides compared to conventional loans. They generally come with higher interest rates, though the gap has narrowed in recent years. The requirements to qualify are typically tougher, requiring higher credit scores, lower debt-to-income ratios, and substantial cash reserves. The application process tends to be more thorough and may take longer. Additionally, some jumbo loan programs have limited options for adjustable-rate terms or refinancing flexibility. That said, the right jumbo loan from the right lender can mitigate many of these concerns.
Is mortgage insurance required on jumbo loans?
No, one of the advantages of jumbo loans is that they typically do not require mortgage insurance, even with down payments less than 20%. Instead of charging mortgage insurance, jumbo loan lenders usually account for the additional risk through slightly higher interest rates or stricter qualification requirements. This can represent significant savings over the life of your loan, as you won’t be paying the additional monthly mortgage insurance premium that would be required on many conventional or government-backed loans with similar down payment amounts. When you work with Client Direct Mortgage, we’ll clearly explain all costs associated with your jumbo loan options so you can make the best choice for your financial situation.
Do jumbo loans require tax returns?
Yes, providing tax returns is a standard requirement for most jumbo loans. Lenders typically request two years of personal tax returns with all schedules and attachments. If you’re self-employed or have significant business income, you’ll likely need to provide business tax returns as well. Tax returns help lenders verify your income stability and overall financial health when approving larger loan amounts. That said, some lenders in our extensive network offer alternative documentation loan options such as bank statement loans for borrowers with substantial assets or unique financial situations.
How can I avoid a jumbo loan?
There are several ways to avoid taking out a jumbo loan if that’s your preference. The most straightforward approach is increasing your down payment to bring the loan amount below the conforming limit (currently $806,500 in most areas, or up to $1,209,750 in high-cost areas). Another strategy is using a “piggyback” loan structure, with a first mortgage at the conforming limit and a second mortgage to cover up to 15% of the remaining 20%. Lowering your down payment to only 5%.