No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
In today’s competitive housing market, especially in high-cost states like California and Washington, traditional mortgage limits often fall short. That’s where jumbo loans come in, offering financing solutions for homes that exceed conforming loan limits. But qualifying for a jumbo loan isn’t as simple as applying for a conventional mortgage. It requires stronger financial credentials, strategic planning, and a deep understanding of lender expectations.
This guide will walk you through everything you need to know to qualify for a jumbo loan in high-cost states, including eligibility criteria, credit score requirements, income documentation, and smart jumbo loan financing solutions.
A jumbo loan is a type of mortgage used to finance properties that exceed the Federal Housing Finance Agency (FHFA) conforming loan limits. In 2025, the conforming loan limit in most counties across the U.S. is $806,500, but jumbo loan limits in high-cost states, like Los Angeles and Orange County, can go up to $1,209,750. Loan amounts over these thresholds are considered “jumbo.”
Jumbo loans work much like regular conforming mortgages, offering borrowers choices in repayment terms, interest structures, and loan durations. The key difference lies in their size and risk: jumbo loans exceed conventional lending limits and are less widely available.
Since jumbo loans are not backed by Fannie Mae or Freddie Mac, lenders assume more risk. That’s why jumbo vs conventional loan qualifications differ significantly, with jumbo loans requiring higher financial benchmarks
To improve your chances of getting approved for a jumbo loan in a high-cost state, you’ll need the following:
Lenders typically require a credit score of at least 700 to 740 for jumbo loan approval. A higher score not only improves your eligibility but also helps secure better interest rates.
Your debt-to-income ratio compares your current debts to your income. For jumbo loans, lenders typically prefer a DTI of 43% or lower, though some may allow up to 45% with compensating factors.
To qualify for a jumbo loan, you’ll need to demonstrate consistent, high income and ample reserves. Often, you’ll need enough to cover 6 to 12 months of mortgage payments.
While conventional loans may allow down payments as low as 3%, jumbo loans typically require 10% to 20% down, depending on the lender and property type. The exact jumbo loan down payment requirements vary by lender, property type, and borrower profile.
Jumbo loans often require two appraisals to confirm the property’s value, especially for luxury homes or unique properties, depending on the loan-to-value (LTV) ratio. A detailed home inspection may also be necessary to assess condition and marketability.
Lenders will assess your financial records more closely for jumbo loans. Be prepared to provide the following:
This jumbo loan documentation checklist ensures lenders can fully verify your financial stability.
States like California and Washington have median home prices well above national averages. In cities such as San Francisco, Los Angeles, and Seattle, even modest homes can exceed conforming loan limits. Jumbo loans allow buyers in these regions to access the financing they need without resorting to multiple mortgages or excessive down payments.
Jumbo loans are essential for financing homes that exceed the conforming loan limits set by the FHFA. Here’s how jumbo loans play out across 5 key states:
Top boost your odds of getting approved for a jumbo loan in a high-cost state, consider the following tips:
| Conforming Loans | Jumbo Loans | |
| Maximum Loan Amount | Up to FHFA limit | Above FHFA limit |
| Credit Score | 620+ | 700+ |
| Down Payment | 3%–20% | 10%–20%+ |
| DTI Ratio | ≤50% | ≤43% |
Be sure to weigh the perks and drawbacks of a jumbo loan before applying.
| Piggyback Loans (80-10-10 Strategy) |
|
| Portfolio Loans |
|
| Asset-Based Lending |
|
| Interest-Only Loans |
|
Which states are considered high-cost for jumbo loans?
States like California and Washington frequently exceed national price averages, triggering higher jumbo loan limits in high-cost states.
How do jumbo loans differ from conventional loans?
Jumbo loans require higher credit scores, larger down payments, and more documentation, and they often come with higher interest rates due to increased lender risk.
What is the conforming loan limit in Seattle?
Seattle’s conforming loan limit is $1,037,300 for 2025.
What is considered a jumbo loan in Orange County, CA?
A jumbo loan in Orange County is one that exceeds $1,209,750.
How much down payment is required for a jumbo loan?
Expect to put down 10% to 20% of the home’s price.
Can I get a jumbo loan with a variable interest rate?
Yes, jumbo loans are available with fixed or adjustable-rate options, depending on your preference and lender offerings.
Are jumbo loans available for second homes or investment properties?
Yes, but the requirements are typically stricter, including higher down payments and more reserves.
What is the debt-to-income ratio requirement for jumbo loans?
Lenders usually prefer a jumbo loan DTI ratio of 43% or lower, though exceptions may be made for borrowers with strong assets or income.
Are jumbo loans harder to qualify for?
Yes, due to the larger loan amounts and lack of government backing, lenders impose more rigorous underwriting standards.
Can self-employed individuals qualify for jumbo loans?
Yes, self-employed borrowers may qualify, but they must provide at least two years of tax returns, profit-and-loss statements, and other financial documentation.
Do jumbo loans require multiple appraisals?
In some cases, especially for luxury or unique properties, lenders may request two appraisals to confirm market value.
Can I refinance a jumbo loan?
Yes, jumbo loans can be refinanced to take advantage of lower rates or change loan terms, though the jumbo loan approval process may be more complex than standard refinancing.
Are jumbo loans available for condos and co-ops?
Yes, but lenders may have additional requirements for these property types, including building financials and occupancy rates.
What are typical interest rates for jumbo loans?
Rates vary based on market conditions and borrower qualifications, but are often slightly higher than conforming loan rates. That said, there are times when jumbo loan rates may actually be slightly lower than conforming loan rates.
Can I use gift funds for a jumbo loan down payment?
Some lenders allow gifted funds, but they may require documentation and limit how much of the down payment can come from gifts.
Who are the best lenders for jumbo loans?
The best lenders for jumbo loans depend on your financial profile, loan size, and location. Comparing multiple lenders is essential.
To qualify for a jumbo loan in high-cost states, you’ll need more than just good credit — you’ll also need a strong financial foundation, strategic planning, and the right lender. Whether you’re buying a luxury condo in Seattle or a hillside home in San Francisco, understanding the nuances of jumbo loan financing solutions can help you secure the property you want without unnecessary stress.
Are you ready to apply for a mortgage to buy a home in a high-cost state? If so, Sammamish Mortgage can help. We are a mortgage company serving borrowers throughout Washington, Oregon, Idaho, Colorado, and California. We offer many mortgage programs, including jumbo loans, to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages, or visit our website to get an instant rate quote.
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.