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.
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 guaranteed 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. And 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. As a broker, I know which lender is best for each scenario — and I shop them against each other for your business.
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. This distinction matters because the pricing difference between high-balance conforming and jumbo can be significant.
Why Borrowers Choose Jumbo Through The Starks Team
Jumbo lending is where the broker model delivers the most value — because lender variation is highest.
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.
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 best rate for your profile.
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.
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.
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. That said, here are the general parameters I see across the jumbo lenders I work with — and the nuances that matter.
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 (large down payment, significant reserves, low DTI). On a jumbo loan, credit score tiers affect pricing more dramatically than on conforming loans — the difference between a 700 and a 760 score on a $1 million loan can be meaningful over 30 years.
Down Payment
The standard jumbo down payment ranges depend on the property type and loan amount:
- Primary residence: 10% to 20% down. Some lenders offer 10% down with no mortgage insurance on loan amounts up to $1.5 million — but this varies significantly by lender, which is why shopping matters.
- Second home: 10% to 20% down, depending on the lender and loan amount.
- Investment property: 20% to 25% down. Some non-QM jumbo lenders will go to 20% for DSCR programs.
Reserves
This is where jumbo requirements are notably stricter than conforming. 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 — some lenders want reserves on all owned properties, not just the subject property. I account for this in every pre-approval so there are no surprises.
Debt-to-Income Ratio
Most jumbo lenders cap DTI at 43%, though some allow up to 45% or even 50% with significant compensating factors. The threshold is generally lower than FHA (which allows 50%+) but comparable to conforming conventional. With the larger loan amounts involved, even a 43% DTI translates to substantial income requirements.
Income Documentation
Traditional jumbo programs require two years of W-2s and tax returns (or two years of personal and business returns for self-employed borrowers). For self-employed borrowers whose tax returns understate their income, I also work with jumbo lenders offering:
- Bank statement programs: 12 or 24 months of personal or business bank statements
- Asset-based qualification: Using liquid assets to calculate imputed income
- 1099 income programs: For independent contractors and gig workers
- DSCR programs: For investment properties, qualifying based on the property's rental income rather than personal income
Jumbo vs. Conforming: A Practical Comparison
If your loan amount is near the conforming limit, it's worth understanding the differences between jumbo and conforming — 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. The answer isn't always obvious, which is why running the numbers matters.
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:
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. These buyers typically have strong credit, significant equity from a previous home sale, and high income — they just need the loan amount to be bigger than conforming allows.
Self-Employed Business Owners
Entrepreneurs, business owners, 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 due to legitimate business deductions. This is where non-QM jumbo programs (bank statement, asset-based) become essential. I have multiple lender options specifically designed for this borrower profile.
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. DSCR programs are particularly valuable for investors with complex tax returns from multiple entities.
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 through a broker is especially important.
Why a Broker Makes the Biggest Difference on Jumbo
I've said this already, but it bears repeating: jumbo is where the broker model delivers the most value to the borrower. Here's why:
- 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%. On a $1.5 million balance, a 0.25% rate difference is roughly $3,750 per year — over $112,000 over 30 years. That's real money, and it's the direct result of shopping multiple lenders.
- 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.
- 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.
- 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.
Jumbo Loan FAQs
The questions I get most from borrowers considering jumbo financing.
A jumbo loan is any mortgage that exceeds your county's conforming loan limit. For 2026, that's $832,750 in Arizona (all counties) and $1,249,125 in Orange County, CA. If you need to borrow more than your county's limit, you need a jumbo loan. Because jumbo loans aren't backed by Fannie Mae or Freddie Mac, each lender sets its own guidelines and pricing — which is why shopping with a broker matters more on jumbo than on any other loan type.
Most jumbo lenders want a minimum of 700, though some will go to 680 with compensating factors. For the best pricing, a 740+ score makes a meaningful difference — especially on larger loan amounts where even small rate differences compound over time. I work with multiple jumbo lenders with different credit tiers, so I can match you to the one offering the best terms for your score.
Primary residence: typically 10% to 20%. Some lenders offer 10% down with no MI up to certain loan amounts. Second home: 10% to 20%. Investment property: 20% to 25%. The more you put down, the better your pricing — and on jumbo loan amounts, even small rate improvements translate to significant savings over time. I show you the cost comparison for different down payment levels so you can decide where the sweet spot is.
Not necessarily. This is one of the biggest misconceptions in the mortgage industry. Today, jumbo rates are often comparable to conforming rates and sometimes even lower for well-qualified borrowers with 20%+ down and 740+ credit scores. Jumbo lenders compete aggressively for these profiles. That said, for borrowers with lower scores or less down payment, jumbo pricing can be higher. I shop multiple jumbo lenders to find the most competitive rate for your specific profile.
Yes, and self-employed borrowers are a significant portion of jumbo loan applicants. Traditional programs require two years of tax returns. If your returns don't reflect your actual income, non-QM jumbo programs offer bank statement qualification (12 or 24 months), asset-based income calculation, and 1099 income programs. I have multiple lender options for each documentation type, which is critical because non-QM jumbo pricing varies even more than traditional jumbo pricing.
In high-cost areas like Orange County, the conforming limit is $1,249,125 — higher than the national baseline of $832,750. Loans between $832,750 and $1,249,125 are called "high-balance conforming" or "super conforming." They're still backed by Fannie Mae and Freddie Mac, so they typically carry better rates and more flexible requirements than true jumbo. In Arizona, this tier doesn't apply because all counties use the baseline. The distinction matters — I always check if your loan amount qualifies for high-balance conforming before moving to jumbo.
Jumbo pricing varies more from lender to lender than any other loan type. On a $1 million loan, even a 0.125% rate difference saves over $15,000 over the life of the loan. I have access to dozens of jumbo lenders and know which are competitive for your specific loan amount, property type, credit profile, and documentation type. A bank can only offer you their jumbo program. I can shop all of them and let them compete for your business.
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.
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.
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 guaranteed 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. And 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. As a broker, I know which lender is best for each scenario — and I shop them against each other for your business.
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. This distinction matters because the pricing difference between high-balance conforming and jumbo can be significant.
Why Borrowers Choose Jumbo Through The Starks Team
Jumbo lending is where the broker model delivers the most value — because lender variation is highest.
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.
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 best rate for your profile.
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.
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.
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. That said, here are the general parameters I see across the jumbo lenders I work with — and the nuances that matter.
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 (large down payment, significant reserves, low DTI). On a jumbo loan, credit score tiers affect pricing more dramatically than on conforming loans — the difference between a 700 and a 760 score on a $1 million loan can be meaningful over 30 years.
Down Payment
The standard jumbo down payment ranges depend on the property type and loan amount:
- Primary residence: 10% to 20% down. Some lenders offer 10% down with no mortgage insurance on loan amounts up to $1.5 million — but this varies significantly by lender, which is why shopping matters.
- Second home: 10% to 20% down, depending on the lender and loan amount.
- Investment property: 20% to 25% down. Some non-QM jumbo lenders will go to 20% for DSCR programs.
Reserves
This is where jumbo requirements are notably stricter than conforming. 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 — some lenders want reserves on all owned properties, not just the subject property. I account for this in every pre-approval so there are no surprises.
Debt-to-Income Ratio
Most jumbo lenders cap DTI at 43%, though some allow up to 45% or even 50% with significant compensating factors. The threshold is generally lower than FHA (which allows 50%+) but comparable to conforming conventional. With the larger loan amounts involved, even a 43% DTI translates to substantial income requirements.
Income Documentation
Traditional jumbo programs require two years of W-2s and tax returns (or two years of personal and business returns for self-employed borrowers). For self-employed borrowers whose tax returns understate their income, I also work with jumbo lenders offering:
- Bank statement programs: 12 or 24 months of personal or business bank statements
- Asset-based qualification: Using liquid assets to calculate imputed income
- 1099 income programs: For independent contractors and gig workers
- DSCR programs: For investment properties, qualifying based on the property's rental income rather than personal income
Jumbo vs. Conforming: A Practical Comparison
If your loan amount is near the conforming limit, it's worth understanding the differences between jumbo and conforming — 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. The answer isn't always obvious, which is why running the numbers matters.
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:
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. These buyers typically have strong credit, significant equity from a previous home sale, and high income — they just need the loan amount to be bigger than conforming allows.
Self-Employed Business Owners
Entrepreneurs, business owners, 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 due to legitimate business deductions. This is where non-QM jumbo programs (bank statement, asset-based) become essential. I have multiple lender options specifically designed for this borrower profile.
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. DSCR programs are particularly valuable for investors with complex tax returns from multiple entities.
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 through a broker is especially important.
Why a Broker Makes the Biggest Difference on Jumbo
I've said this already, but it bears repeating: jumbo is where the broker model delivers the most value to the borrower. Here's why:
- 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%. On a $1.5 million balance, a 0.25% rate difference is roughly $3,750 per year — over $112,000 over 30 years. That's real money, and it's the direct result of shopping multiple lenders.
- 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.
- 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.
- 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.
Jumbo Loan FAQs
The questions I get most from borrowers considering jumbo financing.
A jumbo loan is any mortgage that exceeds your county's conforming loan limit. For 2026, that's $832,750 in Arizona (all counties) and $1,249,125 in Orange County, CA. If you need to borrow more than your county's limit, you need a jumbo loan. Because jumbo loans aren't backed by Fannie Mae or Freddie Mac, each lender sets its own guidelines and pricing — which is why shopping with a broker matters more on jumbo than on any other loan type.
Most jumbo lenders want a minimum of 700, though some will go to 680 with compensating factors. For the best pricing, a 740+ score makes a meaningful difference — especially on larger loan amounts where even small rate differences compound over time. I work with multiple jumbo lenders with different credit tiers, so I can match you to the one offering the best terms for your score.
Primary residence: typically 10% to 20%. Some lenders offer 10% down with no MI up to certain loan amounts. Second home: 10% to 20%. Investment property: 20% to 25%. The more you put down, the better your pricing — and on jumbo loan amounts, even small rate improvements translate to significant savings over time. I show you the cost comparison for different down payment levels so you can decide where the sweet spot is.
Not necessarily. This is one of the biggest misconceptions in the mortgage industry. Today, jumbo rates are often comparable to conforming rates and sometimes even lower for well-qualified borrowers with 20%+ down and 740+ credit scores. Jumbo lenders compete aggressively for these profiles. That said, for borrowers with lower scores or less down payment, jumbo pricing can be higher. I shop multiple jumbo lenders to find the most competitive rate for your specific profile.
Yes, and self-employed borrowers are a significant portion of jumbo loan applicants. Traditional programs require two years of tax returns. If your returns don't reflect your actual income, non-QM jumbo programs offer bank statement qualification (12 or 24 months), asset-based income calculation, and 1099 income programs. I have multiple lender options for each documentation type, which is critical because non-QM jumbo pricing varies even more than traditional jumbo pricing.
In high-cost areas like Orange County, the conforming limit is $1,249,125 — higher than the national baseline of $832,750. Loans between $832,750 and $1,249,125 are called "high-balance conforming" or "super conforming." They're still backed by Fannie Mae and Freddie Mac, so they typically carry better rates and more flexible requirements than true jumbo. In Arizona, this tier doesn't apply because all counties use the baseline. The distinction matters — I always check if your loan amount qualifies for high-balance conforming before moving to jumbo.
Jumbo pricing varies more from lender to lender than any other loan type. On a $1 million loan, even a 0.125% rate difference saves over $15,000 over the life of the loan. I have access to dozens of jumbo lenders and know which are competitive for your specific loan amount, property type, credit profile, and documentation type. A bank can only offer you their jumbo program. I can shop all of them and let them compete for your business.
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.