Jumbo mortgage loans allows you to purchase a more expensive home with a loan amount above the usual, or conforming, loan limits, which are set by the U.S. federal government’s Federal Housing Finance Agency. Each year, the FHFA reviews these loan limits and usually revises the limits upward for the following year.
A jumbo loan is a mortgage where the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are used for higher-value properties that exceed standard borrowing limits. Jumbo loans typically come with stricter underwriting requirements—such as higher credit score thresholds and larger financial reserves—than an everyday home loan.
To understand jumbo loans, it helps to understand “conforming” vs. “non-conforming” mortgages. A loan is considered “conforming” when it fits all the requirements and guidelines set by Fannie Mae and Freddie Mac—the two government-sponsored entities (GSEs) that purchase mortgages from lenders like Fairway to bundle into mortgage-backed securities (MBS).
Because higher loan amounts carry more financial exposure for lenders, loans exceeding the FHFA’s conforming limits are classified as “non-conforming” or “jumbo” loans, meaning they are held on a lender’s portfolio or sold through specialized private channels.
At Fairway, we don’t view you as a higher risk simply because you’re purchasing or refinancing a higher-value property. Your Fairway mortgage advisor will guide you through the process if a jumbo loan best suits your financial strategy.
Jumbo loans provide expanded financing power for higher-priced real estate. Highlights include:
How big is a typical jumbo mortgage down payment?
Down payment requirements depend on property type and loan structure. At Fairway, our core jumbo programs offer options with down payments as low as 10% for primary residences.
Because jumbo guidelines evolve with broader market conditions, your Fairway mortgage advisor can present the full range of jumbo financing programs available for your specific situation.
What is a super-jumbo mortgage?
A super-jumbo mortgage is a loan that significantly exceeds standard jumbo thresholds—typically financing properties priced multi-millions and above, particularly in high-cost luxury real estate markets.
What is a jumbo reverse mortgage?
A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home equity into cash. A jumbo reverse mortgage applies this same concept to higher-value luxury homes where the property value exceeds standard FHA Home Equity Conversion Mortgage (HECM) limits, allowing qualifying homeowners to access a larger portion of their equity.
Fairway is an equal housing lender. Financial qualifications, minimum credit scores, reserve requirements, and maximum loan amounts apply for all jumbo mortgage products.
