Do I need a 20% down payment for a jumbo loan | Optionwide Financial
Do I Need a 20% Down Payment for a Jumbo Loan?
June 5, 2024

Conforming Mortgage Loan Limits vs Jumbo and Super Jumbo Loan Limits

Luxurious multi-million dollar home financed with a Super Jumbo home loan

In the complex landscape of American home financing, the Federal Housing Finance Agency (FHFA) stands as a key regulator, tasked with setting conforming mortgage loan limits across the United States, which has far-reaching implications for homeowners and lenders alike.

Every year during the month of November, the FHFA evaluates the current state of the market and decides if conforming loan limits require adjustment.

As of 2024, the FHFA established the baseline conforming loan limit for single-family homes at $766,550. This figure is applicable across most of the country, reflecting 115% of the average housing costs. In high-cost areas such as California, the loan limits rise sharply to $1,149,825, mirroring the elevated real estate prices that characterize the state.

Loans that exceed these set limits are categorized as ‘Jumbo’, and those that surpass the $3,000,000 threshold are termed ‘Super Jumbo’. It’s crucial to note that these Jumbo and Super Jumbo loans fall outside the purview of the guidelines set by Fannie Mae or Freddie Mac. This is where Non-Qualified Mortgage (Non-QM) lenders come into play.

By offering alternative financing options, these lenders cater to borrowers seeking loans that exceed the conventional limits. In doing so, they ensure the path to homeownership remains accessible, even for those eyeing properties with a higher price tag. This dynamic interplay between various entities underscores the versatility and adaptability of services like those offered by provides a spectrum of home financing options, with loan amounts ranging from $766,551 to $4 million although larger loan amounts can be accommodated on a case-by-case basis. The qualification process is highly flexible, accepting standard methods such as W2s and tax returns and alternative options, including 12- to 24-month bank statements or 1099s.

As with any mortgage loan, other key criteria such as credit score, down payment, and cash reserves must be met. The objective is to offer a diverse set of solutions designed to cater to your specific financing goals.

Super Jumbo Lender | Loan Limits | Contact UsIf you have questions about Jumbo and Super Jumbo loans, want to pre-qualify before shopping for a home, or have found a property and want to lock in a great interest rate, call (877) 811-8582 or apply online at today!

Informational Resource: Federal Housing Finance Agency