A jumbo loan can be used to purchase or refinance a higher-value property when the amount being financed exceeds the standard loan limit for that county. For buyers who need a larger loan amount, jumbo financing provides an option beyond conventional conforming financing.

Understanding jumbo loans

Jumbo loans are a type of non-conforming mortgage designed for loan amounts that exceed the loan limits set for conventional financing. These conforming loan limits are established by Fannie Mae and Freddie Mac and vary by county.

Simply put, a jumbo loan is a mortgage loan that exceeds the conforming loan limit for the county where the property is located.

Because jumbo loans fall outside those limits, individual lenders set their own guidelines. This means qualification requirements, down payment options, interest rates, and other loan terms can vary from lender to lender.

Down payment flexibility

One common misconception about jumbo loans is that they require a substantial down payment. Typically, a jumbo loan requires a minimum down payment of 10%, although specific down payment requirements may vary among lenders. With a jumbo loan, a larger down payment generally results in a more favorable interest rate.

Creditworthiness matters

Your credit score significantly influences the terms of your jumbo loan, with higher credit scores leading to a lower interest rate. Previously, jumbo loans often entailed stringent documentation and underwriting standards. However, today, many lenders apply similar underwriting and review processes to jumbo loans as they do with conventional loans.

Conforming loan limits for 2026

Here are the 2026 conforming loan limits for a 1-unit property in several counties that we serve:

• Solano County – $832,750
• Yolo, Sacramento, Placer, & El Dorado Counties – $832,750
• Sonoma County – $897,000
• Napa County – $1,017,750
• Contra Costa, Alameda, Marin, SF, San Mateo, & Santa Clara Counties – $1,249,125

These limits reflect the maximum loan amounts that can be obtained through conventional loans in these areas. If the amount you wish to finance exceeds these limits, a jumbo loan may be the solution to consider.

Is a jumbo loan right for you?

Whether a jumbo loan is the right fit depends on your financial situation, the property you’re purchasing, and the amount you need to finance. For buyers purchasing higher-value homes, jumbo financing can provide access to larger loan amounts and competitive loan options. Working with a knowledgeable mortgage broker can help you compare available jumbo programs, understand the qualification requirements, and determine which option best fits your goals.

In conclusion, jumbo loans provide a pathway to financing high-value properties. If you’re ready to step into the world of high-value real estate, contact us today to discuss whether a jumbo loan is the right fit for your specific circumstances.