Jumbo Loan Amounts: How much can you borrow?

If you're looking to finance a high-value property, you're likely exploring jumbo loans—mortgages that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. For 2025, the conforming limit in most areas is $806,500, meaning any loan above that threshold is considered "jumbo."

But not all jumbo loans are created equal. As loan amounts increase, lenders apply different guidelines based on risk and investor criteria. Below, we break down common jumbo loan tiers—specifically $2.0M, $2.5M, $3.0M, and $3.5M—and what borrowers should expect in terms of down payment, reserves, and eligibility by transaction type.

Jumbo Loans by Loan Amount

Tier 1: up to $2.0M

• Primary Residence: As little as 10% down payment is possible for highly qualified borrowers.

• Second Home: 20% required down payment.

• Investment Property: 20% required down payment.

• Credit Score: 700+ score required for loan amounts up to $1.5M, 720+ required from 1.5-2.0M.

• Reserves: 3 months of mortgage payments.

  
  

Tier 2: $2.0M - $2.5M

• Primary Residence: 20% down payment required.

• Second Home: 25% down payment required.

• Investment: 25% down with strong rental history.

• Credit Score: 720+ score required primary residence, 740+ for second homes and investment properties.

• Reserves: 18 months of mortgage payments.

  
  

Tier 3: $2.5M - $3.0M

• Primary Residence: 20% down payment required.

• Second Home: 25% down payment required.

• Investment: not available, max loan for investment property is $2.5M

• Credit Score: 740+ typically required for best pricing.

• Reserves: 18 months of mortgage payments.

  
  

Tier 4: $3.0M - $3.5M

• Primary Residence: Minimum 25% down payment required.

• Second Home: not available, max loan for second home is $3.0M

• Additional Conditions: Multiple appraisals are required, and underwriting is highly stringent.

• Reserves: 24 months of mortgage payments.

  
  

What to Keep in Mind with Jumbo Loans

1. Underwriting Is Stricter: Higher loan amounts mean more scrutiny. Expect detailed income analysis and asset verification.

2. Reserves Matter: Liquid assets after closing—like stocks, retirement accounts, or cash—can help offset risk and improve loan terms.

3. Rate Pricing Can Vary by Tier: Larger loan amounts may come with higher rates or price adjustments. Lock early with a lender who understands jumbo nuances.

4. Loan Types Available: Most jumbo loans are available as 30-year fixed, ARM options, and interest-only loans for well-qualified buyers.

Need a Jumbo Loan? Talk to a Specialist

If you need a Jumbo loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.