Best Jumbo Mortgage Lenders

If you’re eyeing a house that’s more expensive than the Federal Housing Finance Agency’s conforming loan limits for 2024—$766,550—you’ll need a jumbo loan. 

It might be tougher to qualify for a jumbo loan, and you may spend more on closing costs and interest. But if you meet all the criteria, a jumbo loan can be the perfect way to get you into the house that’s right for you. Below, we’ll review the best jumbo mortgage lenders. Then we’ll walk you through how jumbo loans work and how to apply for a mortgage.

Reviews of the top jumbo mortgage lenders

You can find jumbo loans with online lenders and traditional banks. The best jumbo mortgage lenders offer flexible terms, competitive rates, low fees, and high maximum loan amounts. You can typically expect to pay higher interest rates because jumbo loans are inherently riskier for the lender, but you can still shop around to find the best rates possible.

Below, we’ve rounded up four of the best lenders for jumbo loans, including online lenders and traditional banks. These lenders offer a solid mix of customer satisfaction, easy-to-use tech, competitive rates, and low fees.

SoFi

Rocket Mortgage

Quicken Loans

Navy Federal Credit Union

How do the best jumbo mortgages work?

Jumbo mortgages are similar to traditional mortgages. Lenders offer fixed- and adjustable-rate options, with fixed-rate loan terms set at 15 or 30 years and adjustable-rate loan terms as short as seven years.

The major difference between a regular mortgage and a jumbo mortgage is the loan amount.

The FHFA sets annual limits for conforming loans for Fannie Mae and Freddie Mac, the government-back entities that buy, sell, guarantee, and securitize conventional mortgages. If you want to purchase a home that exceeds that limit, you must finance it with a jumbo loan.

For 2024:

• The FHFA conventional mortgage limit is $766,550 for most single-unit properties.
• Limits for homes in certain counties with a higher cost of living and non-continental states are 150% of the standard limit. So, the limit is $1,149,825 for areas with high median home values (115% of the baseline conforming loan limit) and Hawaii, Alaska, Guam, and the U.S. Virgin Islands.

The process of getting a jumbo loan—and making monthly payments on it—feels similar to a traditional mortgage, but these are notable differences regarding the costs of jumbo loans:

• Interest rates: Interest rates for jumbo mortgages are often slightly higher than those for conforming mortgages, though this can vary by lender and depend on current mortgage interest rates. Because interest rates for conventional mortgages are notably high in 2024, jumbo loan rates may be the same (or even lower, in some cases).
• Down payments: Lenders often impose strict down payment guidelines on jumbo loans, with many requiring at least 20% down. Some lenders may approve jumbo mortgages with as little as 10% down. But given the size of a jumbo loan—starting at $766,551—that’s a sizable down payment ($76,655 at a minimum).
• Closing costs: Closing costs are generally 2% to 5% of the total loan amount, so given the larger nature of a jumbo loan, you’ll need to budget more due at signing.

Qualifying for jumbo loans can be more challenging than a conventional mortgage. We’ll discuss those qualification requirements below.

How do the best banks for jumbo loans compare to online lenders?

Online lenders may offer lower rates and fees for loans than traditional brick-and-mortar banks, but that’s not always the case when it comes to jumbo loans.

Because qualified borrowers applying for jumbo mortgages are likely to be higher-net-worth individuals, banks may be willing to offer more competitive rates and lower fees to win your business—in the hopes you’ll start using other banking and loan products.

When applying for a jumbo mortgage, or any kind of loan, it’s worth exploring all the options to see where you can get the best rates and lowest fees.

How to apply with jumbo home mortgage lenders

Want to buy an expensive home? A jumbo mortgage is likely the only path forward. Here’s how to apply:

1. Make sure you’re qualified for a jumbo loan

Because jumbo loans pose more risk to lenders, they often impose stricter requirements on borrowers to qualify. Before applying for a jumbo loan, make sure you can meet these stricter requirements, which often include:

• A higher credit score: Many lenders only consider borrowers with a FICO credit score of 700 or more when approving jumbo loans.
• A lower debt-to-income ratio: Lenders may have stringent debt-to-income (DTI) requirements, with some only approving borrowers with a DTI of 36% or less. The less debt and more income you have, the better your approval odds.
• Cash reserves: Because jumbo loans result in larger monthly payments, lenders may require that you have enough cash reserves in a bank account to cover anywhere from six months’ to a year’s worth of payments.

2. Make sure you can afford a jumbo loan

Even if you qualify for a jumbo loan on paper, you should sit down with your budget to make sure you’re confident you can afford the jumbo loan. These are factors to consider:

• Down payment: You’ll need to make a down payment of at least 10% (or maybe even 20%) when getting a jumbo loan. Even if you have enough in your bank account to cover that, you’ll need to make sure you have sufficient cash reserves to get approved—and that you have enough money in an emergency fund to cover the unexpected costs associated with home ownership.
• Double appraisals and higher closing costs: Some jumbo mortgage lenders may require two appraisals to ensure the house is worth the high price tag; this protects them in the event they need to foreclose on the home. This means double the appraisal costs. You’ll also need to budget for higher closing costs in general with a jumbo loan.
• Homeowners insurance and property taxes: Beyond the cost of the home itself, you’ll need to be able to pay for homeowners insurance and property taxes, which will be higher than average, given the value of the home.
• Monthly payment: Use a mortgage calculator to understand just how much your monthly payment could be for a house as expensive as the one you’re considering—and at today’s high interest rates.

3. Compare multiple jumbo mortgage lenders

If you’re sure you’ll qualify for a jumbo mortgage—and can afford it—take the time to shop around for a lender. Consider online lenders and traditional banks, which sometimes offer more competitive rates to win customers they see as having higher net worth.

When comparing lenders, consider all the major factors, including:

• Down payment and cash reserve requirements
• Interest rates
• Credit score requirements
• Customer reviews
• Customer service options
• Technology

4. Get preapproved and buy the house

Once you’ve found a lender you like, complete the preapproval process as you would for a traditional mortgage. After you get your preapproval letter, make an offer on your dream home.

If accepted, you’ll follow the general process of a traditional mortgage, but you may need to get two appraisals instead of one.

Pros and cons of a large mortgage

Jumbo mortgages offer a number of advantages, but consider the drawbacks, too.

Pros

• You can purchase a more expensive home.

  Traditional mortgages will max out at $766,550 in 2024 (unless you live in an area with higher medium home values). A jumbo loan can allow you to finance a home that exceeds these FHFA limits.

• You can avoid private mortgage insurance.

  Jumbo loan lenders may not require private mortgage insurance (PMI), even if you put less than 20% down, to make their loan offers more attractive.

• Multiple loan options are available.

  Jumbo loans typically offer flexible loan terms: Fixed and adjustable rates are available, and you can select a timeline that makes sense for you.

Cons

• The qualifications are more rigid.

  Qualifying for a jumbo loan is more challenging than a traditional mortgage. You’ll need excellent credit, a low DTI, and enough cash reserves to cover six to 12 months of loan payments.

• Interest rates and fees could be higher.

  Interest rates for jumbo loans are often higher than for conventional mortgages. And because you’re borrowing more money, expect to pay more for closing costs. You may also need to cover two appraisals. And because you’re borrowing more, your monthly loan payments will be larger.

• You have fewer options.

  You’ll be well served by any of the options in our roundup of the best jumbo mortgage lenders, but you have fewer options when shopping for a jumbo loan than for a conventional mortgage.

Our expert’s advice if you’re unsure about taking on a jumbo mortgage

Erin Kinkade

CFP®

If you know you can afford a jumbo mortgage but are unsure whether you want one, make a list of pros and cons while focusing on your overall goal. If you’re trying to determine whether you can afford a jumbo mortgage, I suggest that the borrower follow the steps laid out above and talk with a real estate agent, a recommended underwriter, and potentially a financial professional or advisor.

FAQ

Is it hard to get a jumbo mortgage?

Obtaining a jumbo mortgage can be more challenging than qualifying for a conforming loan. Lenders impose stricter qualification criteria due to the higher loan amounts and associated risks. 

Borrowers typically need a higher credit score, a larger down payment, and a robust financial profile. Lenders also require thorough documentation of income, assets, and employment history to ensure that borrowers can handle the larger loan payments. Despite these challenges, well-prepared borrowers with strong financials can secure a jumbo mortgage.

What is considered a jumbo mortgage loan?

A jumbo mortgage loan is a home loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For 2024, the conforming loan limit is $766,550 in most parts of the United States. Loans that exceed this amount are classified as jumbo loans. In some high-cost areas, the conforming loan limit can be higher, and any loan surpassing this higher limit is also considered a jumbo loan.

Do you need to put 20% down on a jumbo mortgage?

A 20% down payment is a common requirement for jumbo mortgages, but it’s not always mandatory. Some lenders may accept lower down payments from qualified borrowers with strong credit and financial profiles. 

However, providing a larger down payment can often result in more favorable loan terms and lower interest rates. Check with individual lenders to understand their specific down payment requirements and options.

How we chose the best jumbo mortgage lenders

Since 2019, LendEDU has evaluated mortgage companies to help readers find the best mortgages. Our latest analysis reviewed 228 data points from 12 lenders and financial institutions, with 19 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best jumbo mortgage lenders