Jumbo Loan Guide

A jumbo loan is any loan larger than the conforming limit set by Fannie Mae and Freddie Mac. In high-cost counties like San Francisco, Marin, Santa Clara, and Alameda, the 2026 high-balance conforming ceiling is $1,209,750. Above that, you're jumbo.

Between the standard limit ($806,500) and the high-balance ceiling, you're in high-balance conforming — priced slightly above standard conforming but well below true jumbo.

• Higher credit score minimums (typically 700+ for best pricing, some programs 680)
• Larger reserve requirements: 6–24 months of PITI in liquid assets, depending on loan size
• Full documentation: two years tax returns, W-2s, YTD paystubs, or the non-QM equivalent
• Two appraisals on loans above $2M with most investors
• Debt-to-income caps typically 43%, some programs to 49.99% with compensating factors

Reserves are how many months of the full housing payment (principal, interest, taxes, insurance, HOA) you have left over in liquid assets after closing. It's not a fee — you keep the money. It's proof to the lender you can weather a downturn.

Standard tiers:

• Loans to $1.5M: 6 months reserves
• $1.5M to $3M: 12 months reserves
• $3M to $5M: 18–24 months reserves
• Above $5M: often 24–36 months, plus post-close liquidity requirements

Retirement accounts count at 70% of vested balance. Business accounts count only with a CPA letter confirming withdrawal won't harm the business.

Jumbo pricing shifts in bands, not continuously. The main breakpoints:

• Loan amount tiers: up to $1.5M, $1.5M–$2.5M, $2.5M–$3.5M, $3.5M–$5M, above $5M
• Credit score tiers: 780+, 760–779, 740–759, 720–739, 700–719, 680–699
• LTV tiers: ≤60%, ≤70%, ≤75%, ≤80%
• Occupancy: primary, second home, investment (materially higher)

Small changes at a tier boundary can produce meaningfully different pricing. Structuring around these tiers is where a broker earns their fee.

A 10-year interest-only period followed by a 20-year fully amortizing payment on a 30-year term. Best fit: high-income earners with lumpy income (bonus, RSU vesting, business distributions) who want to control monthly cash flow.

You can prepay principal anytime and reset the interest-only payment lower. Used correctly, it's a cash-flow tool. Used to buy more house than you can afford, it's a delayed problem.

Bank jumbo (Chase, Wells, BofA private client) offers the sharpest rates when you meet their box: perfect W-2 income, large deposits, straightforward file. If any part of your file is unusual — self-employment, non-warrantable condo, complex asset structure — the file dies.

Portfolio and non-QM jumbo lenders price 0.25–0.75% higher but underwrite the whole picture. On complex Bay Area files, they close deals the banks decline.