You should consider a jumbo mortgage if you’re buying an expensive home and need a loan amount that exceeds the conforming loan limits in your area.
Compare Current Jumbo Mortgage Rates
Shopping for the best mortgage rates can save you even more money on a larger loan amount. Compare mortgage offers for the most competitive jumbo loan rates today.
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Jumbo rates vs. conventional loan rates
Historically, jumbo rates have been higher than conforming conventional mortgage rates. However, during periods of strong economic and housing growth, investors tend to feel more confident in bonds secured by jumbo loans. This can drive down jumbo rates, making them the more affordable option.
Understanding jumbo vs. conventional loans: What’s the difference?
A conventional loan is any loan that isn’t backed or insured by a government agency.
A jumbo loan is a type of conventional loan that exceeds conforming loan limits, and is typically much harder to qualify for than conforming conventional loans.
Learn more with our guide to jumbo versus conventional loans.
Lenders typically set stricter requirements for jumbo loans, which may include:
- A down payment of at least 20%
- A minimum credit score of 700 or higher
- A debt-to-income (DTI) ratio of 45% or lower
- A maximum loan amount of $1 million to $2 million
- Several months’ (six to 24, depending on the lender) worth of cash reserves in the bank
Jumbo loans don’t adhere to rules set by a government agency, so some lenders offer niche jumbo programs like:
- Loans requiring minimal income documentation
- Loans with interest-only payments
- Loans for wealthy customers with complex finances, such as doctors or self-employed borrowers
The requirements for these programs vary by lender. Just be aware that these loans often carry higher interest rates to offset the risk of lending to borrowers with unusual circumstances.
How to get the best jumbo mortgage rates
You can get the best jumbo loan rates by following these seven steps:
- Shop around. Jumbo mortgage lenders offer a wide variety of rates and programs, which makes shopping around especially important. Gather loan estimates from three to five lenders and compare the loan offers you receive — it may sound simple, but studies have shown that doing so can save you thousands. You can begin with our picks for the best jumbo loan lenders, which we list below.
- Boost your credit score. Although a 700 credit score will typically get you a jumbo loan approval, lenders often offer the best jumbo mortgage rates to borrowers with higher credit scores.
- Make a bigger down payment. Unlike conventional loans, you’ll need at least a 20% down payment to qualify for a jumbo loan. If you have some wiggle room with your down payment, consider paying more upfront to qualify for a lower rate.
- Check with your bank. Banks may offer special rates on jumbo loans to customers they currently work with, especially if they have large deposit balances and investment portfolios.
- Check with mortgage banks and mortgage brokers. You may find a mortgage broker or mortgage bank with a special jumbo loan program.
- Avoid low-documentation loan options if possible. Jumbo lenders may offer loans with less stringent documentation requirements. The lender may allow you to prove your income with recent bank statements instead of tax returns, for example. This caters to people in uncommon employment scenarios — however, you’re likely to pay a higher rate for the extra flexibility.
- Find a loan officer who is experienced with jumbo loans. The guidelines and requirements for jumbo loan programs can be complicated, and pricing them accurately requires attention to detail and training. Shop around for a loan officer who has at least a few years of experience originating jumbo loans.
Watch out for prepayment penalties
If you see a notably low jumbo mortgage rate offer, beware: It may come with a penalty if you pay off the loan early. Ask your loan officer if your quoted rate includes a prepayment penalty.
The best jumbo loan lenders
Best overall jumbo lender: Ally Bank
Best for low-credit jumbo loans: Veterans United
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services.
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services.
620
Varies*
$2 million
Conventional, FHA, VA
*Minimum down payment varies by VA loan entitlement.
Why we chose Veterans United
Best for high loan amounts: Chase Bank
Not disclosed
15%
$9.5 million
Conventional, FHA, VA
Why we chose Chase
Best for interest-only jumbo ARMs: Sebonic Financial
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services.
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services.
Not disclosed
Not disclosed
$3 million
Conventional, FHA, VA, USDA
Why we chose Sebonic Financial
Learn more about how we created our list of the best jumbo loan lenders.Types of jumbo loans
Jumbo loans can be very similar to traditional 30-year fixed-rate mortgages — just bigger. However, because jumbo loan lenders can set their own terms, they can offer more unique loan options.
Jumbo adjustable rate mortgages
Many jumbo lenders offer adjustable-rate mortgage (ARM) options with a lower initial rate that usually lasts for three, five, seven or 10 years. After the initial fixed-rate period ends, ARM rates change (or “adjust”) based on your loan terms.
Interest-only jumbo mortgages
Some jumbo lenders offer an interest-only option for jumbo loans. You’ll start off with low payments, as you’re only paying interest charges without touching your principal balance. But once the interest-only period ends, you’ll pay the remaining balance in installments for the remaining loan term. This could be a shock to your budget if you don’t pay down your loan balance before the bigger payments begin.
VA jumbo loans
Military borrowers with full VA loan entitlement can qualify for a loan amount that exceeds conforming loan limits. VA jumbo loans are still subject to the VA’s underwriting guidelines, however.
What about FHA jumbo loans?
Some people may refer to FHA loans that exceed FHA loan limits as “FHA jumbo loans.” However, they aren’t actually jumbo loans; they’re just loans that have a higher loan limit because they’re located in a high-cost area. FHA loans can’t exceed the loan limit set for their county.
Ready to compare lender offers? Get Personalized Jumbo Offers NowAlternatives to jumbo loans
Piggyback loan
Using a piggyback loan means taking out two loans at the same time, both secured by the home you’re purchasing. To avoid a jumbo loan, you can take out a first mortgage up to the local conforming loan limit, and then add (“piggyback”) a second mortgage for the additional amount you need to borrow. It’s common to choose a home equity loan or HELOC for the second mortgage.
Advantage: You can avoid the higher interest rates and larger minimum down payment associated with a jumbo loan.
Disadvantage: Having more than one mortgage at a time — also known as utilizing “subordinate financing” — can trigger higher interest rates or extra fees. You’ll have to do the math on both scenarios to know which is right for you.
See current home equity rates today.Bridge loan
Putting profits from a home sale toward a big down payment is smart, but it also means you’ll have to wait for your current home to sell before buying a new one. However, if you use a bridge loan, you can access equity in your current home while it’s still on the market and pay off the bridge loan once it sells.
Advantage: The cash from a bridge loan can beef up your down payment, keeping the balance on your new home at or below conforming loan limits.
Disadvantage: You’ll have to pay closing costs twice — once on the bridge loan and again on your new mortgage.
Learn more about getting a bridge loan.Frequently asked questions
How we chose our picks for the best jumbo lenders
To determine the best jumbo loan lenders, we reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff in 2023.
Each lender review gives a rating between zero and five stars based on several features including digital application processes, available loan products and the accessibility of product and lending information. To evaluate jumbo-specific factors, we awarded extra points to lenders that publish jumbo mortgage rates online and offer both fixed- and adjustable-rate jumbo loans.
Our editorial team brought together all of the data about lenders in our reviews, as well as the scores awarded for jumbo-specific characteristics, to find the lenders with a product mix, information base and guidelines that best serve the needs of jumbo loan borrowers. To be considered for our “best overall” pick, lenders must be licensed to issue mortgages in at least 35 states.
