A jumbo mortgage is a home loan larger than the conforming loan limit set each year by the Federal Housing Finance Agency (FHFA). Because jumbo loans are not backed by Fannie Mae or Freddie Mac, each lender sets its own guidelines, so rates, down payments and approval rules can differ a lot from one lender to the next.

What makes a loan "jumbo"

The conforming limit is set annually and is higher in some high-cost counties. Any loan above the limit for the county where the property sits is a jumbo loan. Check the current limit for your county on the FHFA website, since it changes every year.

What jumbo lenders typically look for

Requirements vary by lender and program, but jumbo files commonly involve:

  • Stronger credit than many conventional loans require.
  • A larger down payment than a standard conforming purchase.
  • Cash reserves: months of mortgage payments held in savings or other assets after closing.
  • Lower debt-to-income ratios and well-documented income.
  • An appraisal, and sometimes a second one on larger loans.

Why compare lenders on a jumbo loan

On a larger balance, a small difference in rate or fees adds up to real money over time. Because every lender prices and underwrites jumbo loans differently, a broker that shops many wholesale lenders can show you side-by-side Loan Estimates. Read how a mortgage broker compares lenders.

Options if your income is not standard

Self-employed buyers and investors can sometimes use alternative documentation. See bank statement loans in NJ and our video on asset depletion loans.

Frequently asked questions

Is a jumbo loan harder to get than a regular mortgage?

Usually the standards are tighter, because the lender carries more risk. A well-prepared file with strong credit, reserves and clean documentation can do well.

Do I need 20% down for a jumbo loan?

It depends on the lender and the program. Some require more than 20%, others offer lower down payment options for strong files. Ask for several quotes.

Where can I learn more?

See the JahnLends jumbo loan page and our guide to working with a Woodbridge mortgage broker.

Call (732) 754-7474 or ask us to compare jumbo options for you →

Loan limits and guidelines change; confirm current figures with FHFA and your lender. JahnLends is the Woodbridge, NJ branch of AMS Mortgage Services, NMLS# 145742. Equal Housing Opportunity. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Other restrictions may apply.