See the monthly payment, qualifying income, and cash reserves needed for a loan above the conforming limit.
Jumbo loans have stricter underwriting than conforming mortgages — higher down payment, larger reserves, and tighter DTI. This calculator models all of it using 2026 limits.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Any mortgage above the conforming limit — typically $806,500+ in most counties.
The 2026 conforming loan limit is approximately $806,500 in most US counties (higher in high-cost areas — up to about $1.21M in some places). Loans above that limit are "jumbo" and aren't eligible for Fannie Mae or Freddie Mac purchase.
Slightly — typically 0.25%–0.5% above conforming rates.
Jumbo rates have actually been close to or below conforming rates in recent years because lenders compete for high-net-worth borrowers. Add a small premium (0.1%–0.4%) to a typical conforming rate as a default estimate.
Usually 10–20% — some lenders require 25%+.
Most jumbo lenders want 10–20% down. Some require 25%+ for loans above certain thresholds. PMI is rarely available, so 20% down is typical to avoid second-loan piggybacks.
Strong cash flow + 6–12 months of reserves.
Jumbo underwriting wants debt-to-income under 43% (often under 38%), credit score 700+, AND 6–12 months of mortgage payments in liquid reserves after closing. Roughly: gross income 3–4× the annual mortgage payment.
The mechanics in short answers — no jargon, no upsell.
The conforming limit is reset annually by FHFA. For 2026, it's roughly $806,500 nationally, with high-cost area increases up to about $1.21M.
Jumbo loans stay on the lender's books or get sold to private investors. That means stricter underwriting and often higher reserve requirements.
Historically jumbos were 0.5%+ above conforming. In 2020–2025, that gap collapsed and sometimes inverted as banks competed for wealthy clients.
Lenders typically require 6–12 months of P&I in liquid assets after closing — proof you can weather an income disruption.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Lender uses ~36–43% DTI — see the gross income you actually need.
Toggle the 0.1–0.4% premium that often applies above conforming limits.
Most jumbo lenders want 6–12 months of payments liquid after closing.
Principal + interest + property tax + insurance — the actual monthly outflow.
Compare 10%, 15%, 20%, and 25% down — see how each shifts the math.
Total interest paid over the loan — the number that makes refinance worth it.
Everything you might ask before, during, or after using this tool.
No. The baseline 2026 limit is approximately $806,500, but high-cost counties (large parts of California, NY metro, Hawaii, DC area) get up to 150% of baseline — about $1.21M. Check the FHFA county-level limits for your exact area.
Historically yes, by about 0.5%. In recent years that gap has frequently closed or even inverted, as banks aggressively compete for high-income borrowers. Always shop both jumbo and conforming options if you're near the line.
Yes — a "80/10/10" structure (80% first, 10% HELOC, 10% down) keeps your first mortgage under the conforming limit. Worth it when the rate spread between jumbo and conforming is large; less attractive when spreads are tight.
Most jumbo lenders don't offer PMI — they prefer 20%+ down. Lender-paid mortgage insurance (LPMI) is sometimes available with a higher rate. The cleanest path is 20% down.
Typical jumbo underwriting wants 700+ for the best rates. Some lenders go to 680, but expect rate add-ons and stricter reserve requirements. Above 740 generally gets best pricing.
Yes — fewer programs, tighter DTI requirements, larger reserves, and full income documentation. Self-employed borrowers especially face more scrutiny: typically 2 years of tax returns, P&L, and bank statements.
Yes. Standard rate-and-term and cash-out refis are available. Some lenders specialize in jumbo refis. Closing costs are usually higher in dollar terms (proportional to loan size) but similar as a percentage.
Yes — interest is deductible on up to $750,000 of acquisition debt for loans originated after Dec 15, 2017 ($1M for older loans). Interest on the portion above the cap is not deductible.
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The Federal Housing Finance Agency (FHFA) sets the conforming loan limit each year. For 2026, that's approximately $806,500 in most US counties.
In designated high-cost areas (much of California, NY metro, DC, Hawaii, Alaska), the limit scales up to ~150% of baseline — about $1.21M.
Anything above your county's limit is a jumbo loan. It's held on a bank's books or sold to private investors instead of bundled into Fannie/Freddie securities.
Higher credit score requirement: 700+ typical for best pricing.
Lower debt-to-income ratio: most lenders cap at 43%, prefer under 38%.
Down payment: 10% is the floor, 20% is standard, 25%+ for the largest loans.
Cash reserves: 6–12 months of mortgage payments in liquid assets after closing is the norm.
Documentation: full income docs always — no "stated income" or low-doc programs.
Pre-2015: jumbo rates were 0.5%+ above conforming rates — classic risk premium.
2015–2020: gap compressed as banks chased high-net-worth customers.
2020–2024: jumbos often matched or BEAT conforming rates briefly — unusual historically.
2025–2026: small premium has returned (typically 0.1–0.4%), but still much smaller than the historic norm.
Always quote both options if you're near the line — the spread varies week to week.
Take a first mortgage at exactly the conforming limit, a second mortgage (HELOC or fixed) for the next chunk, and put 10–20% down.
Avoids the jumbo loan entirely — the first mortgage qualifies as conforming.
Worth it when conforming rates are meaningfully lower than jumbo rates AND the HELOC rate isn't absurd.
Adds complexity (two loans, two payments) and the HELOC is usually variable-rate — model the worst-case rate before committing.
Two short notes worth reading before you trust any number on this page.
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Results are not financial, legal, or tax advice. Please consult a qualified professional before any decision about your loan, investments, or personal finances. Actual loan terms and charges depend on your bank and individual circumstances.
