Financing above the conforming limit
When your loan is larger than your area’s conforming limit, you are in jumbo territory. Every jumbo lender writes its own rules, so shopping 40+ of them matters. $0 processing or underwriting fees.
What is a jumbo loan?
A jumbo loan is a mortgage for an amount above the conforming loan limit set each year by the Federal Housing Finance Agency. For 2026, that limit is $832,750 for a single-family home in most of the country, and higher in more expensive markets. Borrow more than your area’s limit and you are in jumbo territory.
Because jumbo loans cannot be sold to Fannie Mae or Freddie Mac, each lender sets its own guidelines. That is where a broker who shops 40+ lenders earns its keep.
When does a loan become a jumbo? (2026)
It depends on where you are buying. Most areas, including all of Arizona, use the same baseline limit. Pricier metros get more. Anything above your area’s number is a jumbo.
| Market | 2026 conforming limit | Jumbo starts above |
|---|---|---|
| Most of the U.S. (incl. Phoenix, AZ) | $832,750 | $832,750 |
| Atlanta, GA | $832,750 | $832,750 |
| Miami, FL | $832,750 | $832,750 |
| Denver, CO | $862,500 | $862,500 |
| Los Angeles, CA | $1,249,125 | $1,249,125 |
In Phoenix and across Arizona, a loan above $832,750 is a jumbo. Limits reset every January. 2026 figures shown.
What jumbo loans usually look like
Jumbo guidelines are set by each lender, so they vary. A few things are typical:
- A larger down payment. Most jumbo programs land somewhere in the 10% to 20% range, depending on the lender and scenario.
- Strong credit. Jumbo pricing rewards a solid credit profile.
- Reserves, sometimes. Some lenders want you to have savings left after closing. A few programs ask for as little as three months.
- No PMI. Unlike a conventional loan, a jumbo loan does not carry monthly PMI, even with less than 20% down. The pricing simply works differently.
What are reserves? Reserves are savings you have left over after you close, measured in months of your future mortgage payment. Three months of reserves just means enough in the bank to cover about three monthly payments after closing. Requirements swing a lot from lender to lender, which is the whole reason to use a broker on a jumbo loan. We shop 40+ of them to find the best fit.
Can I avoid a jumbo loan?
Sometimes, yes, and it can save you money. Jumbo financing can get more expensive, especially with less than 20% down, so we will look at whether we can keep your first mortgage at the conforming limit and skip jumbo pricing. Two common structures:
- 80/10/10: a first mortgage for 80% of the price, a second loan for 10%, and 10% down.
- 80/15/5: a first mortgage for 80%, a second loan for 15%, and 5% down.
Splitting the financing can keep your first mortgage conforming, with no jumbo pricing and no PMI, and a smaller second loan on top. It is not always the best answer, but it is one of the first things we run the numbers on, both ways, so you can see the difference.
Jumbo loan FAQs
When does my loan become a jumbo loan?
When it is larger than your area’s conforming limit. For 2026 that is $832,750 in most of the country, including Phoenix and all of Arizona, and more in pricier metros like Denver ($862,500) and Los Angeles ($1,249,125).
Do jumbo loans require PMI?
No. Jumbo loans do not carry monthly private mortgage insurance, even with less than 20% down. It is one reason a piggyback structure can be worth comparing.
What are reserves, and how much do I need?
Reserves are savings left over after you close, measured in months of your future payment. Some jumbo programs ask for as little as three months. Others want more. It varies a lot by lender.
Is it harder to qualify for a jumbo loan?
Guidelines are a bit stricter, and lenders like to see strong credit and some reserves. But since every jumbo lender sets its own rules, stricter with one can be very doable with another. That is the advantage of a broker.
Can I avoid a jumbo loan if I’m just over the limit?
Often, yes, by splitting the financing (for example, an 80/10/10 or 80/15/5) so your first mortgage stays at the conforming limit. We will compare that against a straight jumbo.
Can I use a jumbo loan for a second home or investment property?
Many jumbo programs allow second homes and investment properties, not just primary residences. Guidelines vary by lender, so tell us your goal and we will find a fit.