Jumbo loans are mortgages that exceed the conforming loan limit, which is $806,500 for most counties in 2026. In high-cost counties, the limit is higher, and loans between the standard and high-cost limit are super conforming, not jumbo. True jumbo loans are held in portfolio by lenders or sold to private investors rather than agency MBS, which means their rates and guidelines are driven by each lender's balance sheet rather than Fannie or Freddie.
How Jumbo Pricing Differs From Conforming
Historically, jumbo rates ran 20 to 50 basis points above conforming rates. After banking stress events in 2023, regional and community banks pulled back from jumbo origination and rates widened. In some periods, conforming rates exceeded jumbo rates offered by major banks competing for wealthy depositor relationships, producing an inverted spread. MLOs need to check actual lender pricing rather than assuming jumbo costs more.
Lender Categories for Jumbo
- ✦Major commercial banks: some portfolio jumbo loans for relationship banking purposes. Their rates can be aggressive for borrowers who maintain substantial deposits.
- ✦Non-bank portfolio lenders: lenders that portfolio jumbo in the agency-eligible price tier
- ✦Private wealth lenders: some jumbo programs over $3M require a private banking relationship and are priced based on deposit levels rather than market rates
- ✦Non-agency securitization: some jumbo loans are pooled into private-label securities. Program availability varies by market conditions.
Underwriting Differences From Conforming
- ✦Reserve requirements are typically higher: 12 to 24 months PITIA is common vs. 2 to 6 months for conforming
- ✦FICO minimums tend to be higher: most jumbo programs require 720 or above at standard LTV
- ✦Second appraisal: many jumbo programs require a second independent appraisal for loans above $1.5M
- ✦Documentation depth: asset statements, tax returns, and income documentation are reviewed more closely than in conforming AUS-approved files
Aria can walk through jumbo underwriting requirements and lender program differences for specific loan amounts and borrower profiles. Ask at vicariointel.com.
7-day free trial. No credit card required.
Ask Aria About Jumbo Loan Requirements →