Ken Starks · Independent mortgage broker · All 50 states
Jumbo Home Loans: Financing Beyond Conforming Limits
When the home you want costs more than conforming limits allow, you need a lender that wants jumbo business, and a broker who knows which lender that is.
Jumbo basics
What makes a jumbo loan different, and why your lender choice matters more
A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency. For 2026, that limit is $832,750 in most of the country (including all of Arizona) and $1,249,125 in designated high-cost areas like Orange County, California. If you need to borrow more than your county's conforming limit, you're in jumbo territory.
Here's what makes jumbo different from conventional conforming loans: jumbo mortgages are not purchased or backed by Fannie Mae or Freddie Mac. The lender holds the risk, which means each lender sets its own guidelines, its own pricing, and its own appetite for different borrower profiles. That's exactly why working with a broker matters more on jumbo loans than on any other loan type.
After 23 years of originating jumbo mortgages, I can tell you that the pricing spread between lenders on a $1 million loan is often two to three times wider than on a $400,000 conforming loan. One lender might offer excellent terms for a $900,000 primary residence but be expensive above $1.5 million. Another might specialize in jumbo investment properties. A third might have the best bank statement jumbo program for self-employed borrowers.
2026 loan limits
2026 conforming loan limits
Any loan amount above these limits is a jumbo loan. Limits are set annually by the FHFA.
| Market | 1 unit | 2 units | 3 units | 4 units |
|---|---|---|---|---|
| Arizona (all counties) | $832,750 | $1,066,050 | $1,288,350 | $1,601,450 |
| Orange County, CA | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Most U.S. counties | $832,750 | $1,066,050 | $1,288,350 | $1,601,450 |
High-balance conforming vs. true jumbo: in high-cost areas like Orange County, loan amounts between the national baseline ($832,750) and the high-cost limit ($1,249,125) are called "high-balance conforming" or "super conforming" loans. These are still backed by Fannie Mae and Freddie Mac, so they typically carry better rates and more flexible requirements than true jumbo loans. Only amounts above $1,249,125 in Orange County are true jumbo. In Arizona, where all counties use the baseline, anything above $832,750 is jumbo.
Program advantages
Why borrowers choose jumbo through The Starks Team
Jumbo lending is where the broker model delivers the most value, because lender variation is highest.
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No loan amount ceiling
I work with jumbo lenders that finance $1 million, $2 million, $3 million, and beyond. Your qualification is based on income, assets, and creditworthiness, not an arbitrary cap.
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Competitive pricing
Jumbo rates today are often comparable to, and sometimes lower than, conforming rates for well-qualified borrowers. I shop multiple jumbo lenders to find the most competitive rate for your profile.
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Flexible documentation
Traditional tax return documentation, bank statement programs, asset-based qualification, 1099 income, I have jumbo lenders for each documentation type. Self-employed borrowers have options.
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All property types
Primary residences, second homes, and investment properties, including condos, townhomes, single-family, and multi-unit. I match the property type to the right jumbo lender.
Qualifying
Jumbo loan requirements: what lenders actually want
Because jumbo loans aren't backed by Fannie Mae or Freddie Mac, each lender sets its own requirements. Here are the general parameters I see across the jumbo lenders I work with, and the nuances that matter.
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Credit score
Most jumbo lenders want a minimum score of 700, with the best pricing typically reserved for 740 and above. Some lenders will go down to 680 with strong compensating factors. Credit score tiers affect pricing more dramatically on jumbo than on conforming loans.
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Down payment
Standard ranges depend on property type and loan amount:
- Primary residence: 10% to 20% down
- Second home: 10% to 20% down
- Investment property: 20% to 25% down
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Reserves
Most jumbo lenders require 6 to 12 months of mortgage payments in liquid reserves after closing. If you own multiple properties, reserve requirements may increase. I account for this in every pre-approval so there are no surprises.
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Debt-to-income ratio
Most jumbo lenders cap DTI at 43%, though some allow up to 45% or even 50% with significant compensating factors. With larger loan amounts, even a 43% DTI translates to substantial income requirements.
Income documentation
Income documentation options
Traditional jumbo programs require two years of W-2s and tax returns. For self-employed borrowers whose tax returns understate their income, I also work with jumbo lenders offering:
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Bank statement programs
12 or 24 months of personal or business bank statements.
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Asset-based qualification
Using liquid assets to calculate imputed income.
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1099 income programs
For independent contractors and gig workers.
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DSCR programs
For investment properties, qualifying based on the property's rental income rather than personal income.
Compare programs
Jumbo vs. conforming: a practical comparison
If your loan amount is near the conforming limit, it's worth understanding the differences, because sometimes it's smarter to structure the purchase to stay within conforming limits.
| Factor | Conforming | Jumbo |
|---|---|---|
| Loan limit (AZ) | Up to $832,750 | Above $832,750 |
| Backed by | Fannie Mae / Freddie Mac | Lender portfolio (no GSE backing) |
| Min. credit score | 620+ | 680–700+ |
| Min. down payment | 3% to 5% | 10% to 20% |
| Reserves required | 0–2 months (typical) | 6–12 months |
| DTI limit | 45–50% | 43–45% |
| Interest rates | Standardized GSE pricing | Varies by lender (often comparable) |
| MI requirements | Required below 80% LTV | Often waived or built into rate |
| Appraisal | Standard (sometimes waived) | Always required; may need two on high values |
Strategic tip, staying under the jumbo threshold: if your purchase price puts you just above the conforming limit, it can sometimes make sense to increase your down payment to keep the loan amount at or below $832,750 (in Arizona) or $1,249,125 (in Orange County). Conforming loans offer more flexible qualification criteria, standardized pricing, and lower reserve requirements. I model both scenarios, conforming with a larger down payment vs. jumbo with less down, so you can see which option results in the lower total cost.
Who it fits
Who typically needs a jumbo loan?
I originate jumbo loans for a wide range of borrowers. Here are the most common profiles I work with.
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Move-up buyers in Scottsdale, North Phoenix, and Orange County
Home prices in premium Arizona neighborhoods, north Scottsdale, Paradise Valley, Arcadia, parts of Gilbert and Queen Creek, regularly exceed $832,750. In Orange County, coastal cities like Newport Beach, Laguna Beach, and Dana Point frequently require jumbo financing even above the $1,249,125 high-cost limit.
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Self-employed business owners
Entrepreneurs and high-income self-employed professionals often need jumbo financing because their income supports a larger purchase, but their tax returns may not reflect their true earnings. This is where non-QM jumbo programs become essential.
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Real estate investors
Investors adding high-value rental properties to their portfolios often need jumbo financing. I work with jumbo lenders that offer both traditional documentation and DSCR-based qualification for investment properties.
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Jumbo refinance borrowers
Homeowners with existing jumbo mortgages who want to lower their rate, access equity, or shorten their term. Jumbo refinance pricing varies even more than purchase pricing, so shopping multiple lenders is especially important.
The broker advantage
Why a broker makes the biggest difference on jumbo
Jumbo is where the broker model delivers the most value to the borrower.
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Wider pricing spreads
On a $400,000 conforming loan, the pricing difference between lenders might be 0.125%. On a $1.5 million jumbo loan, that spread can be 0.25% to 0.50%, roughly $3,750 a year, over $112,000 over 30 years. That's real money, and it's the direct result of shopping multiple lenders.
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Lender specialization
Some jumbo lenders cap at $1.5 million. Others are most competitive between $1 million and $2 million. Some specialize in condos, others in single-family homes. I know which lenders do what, and I route your file accordingly.
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Overlay differences
One jumbo lender requires 12 months reserves. Another requires 6. One wants two appraisals above $1.5 million. Another doesn't. These variations affect your closing timeline and out-of-pocket costs. I know the overlays before we start.
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Relationship pricing
Because I send volume to my jumbo lenders consistently, I often have access to pricing and programs that aren't available to a borrower who walks in off the street.
Learn more about my approach and credentials, or use our mortgage calculator to start estimating your jumbo payment.
Compare programs
Not sure jumbo is the right fit?
Every borrower is different. Here is the rest of the loan menu.
Jumbo loan questions
The questions I get most
Real answers for borrowers considering jumbo financing, from someone who's originated them for over two decades.
What is a jumbo loan and when do I need one?
What credit score do I need for a jumbo loan?
How much down payment do I need on a jumbo loan?
Are jumbo loan rates higher than conforming rates?
Can I get a jumbo loan if I'm self-employed?
What is a high-balance conforming loan?
Why should I use a broker for a jumbo loan?
Need financing above conforming limits?
I'll review your scenario, shop multiple jumbo lenders, and show you the best terms available for your specific loan amount, property type, and financial profile.
The Starks Team · Ken Starks, Independent Mortgage Broker · Equal Housing Lender. This is not a commitment to lend. Rates and terms are subject to change and depend on individual qualification.