2025 Jumbo Loan Limits: How Much You Can Borrow This Year

According to data from the Federal Reserve, the average sales price for a home in the US is now over $500,000, with interest rates over 6%.[1] An increasing number of homebuyers find themselves pushed out of the pricing limits for federal home loan programs.

That’s where jumbo loans come in. When looking at a home worth more than the FHFA conforming loan limits, you are in jumbo loan territory. Jumbo loans can give you more money to finance larger purchases, and they also tend to have more stringent qualification and income requirements.

The current 2025 FHFA conforming loan limit baseline is $806,500, though the limit can be as high as $1,209,750, depending on your location. If you want to buy a home worth more than the lending limit in your county, you’ll need a jumbo loan to finance the purchase.

What is a jumbo loan?

A jumbo loan is any loan for an amount greater than the Federal Housing Finance Administration (FHFA) conforming loan limits. Loans that follow the lending limit are called conforming loans, as they conform to federal guidelines.

Because they do not conform to federal guidelines, jumbo loans are ineligible for purchase or guarantee by government-sponsored entities (GSEs), such as Fannie Mae or Freddie Mac. As a result, they usually have more stringent credit and lending requirements than conforming loans.

Below is a table summarizing the main differences between the two types of loans.

Because they exceed the FHFA lending limits, jumbo loans are commonly used to finance expensive properties. Lenders offer both fixed-rate and adjustable-rate mortgages that exceed the 2025 jumbo loan limit. 

2025 jumbo loan limits by property type

The FHFA determines jumbo loan limits using data from the US Housing Price Index (HPI). The HPI is used because it provides a comprehensive overview of average housing prices nationwide.

The FHFA first determines a baseline using the HPI and calculates the percentage change from the previous year for adjustments. As of 2025, the conforming loan baseline limit for a single-unit property is $806,500.

Most counties are assigned the baseline limit; however, the limit can be adjusted for areas with higher property values. Specifically, if 115% of the median home price in that county exceeds the baseline limit, it will be assigned the higher limit.

For example, regions like Hawaii, Guam, Alaska, and the US Virgin Islands all have a median home price greater than 115% of the baseline limit, so they use the higher adjusted limit. You can search all current jumbo loan limits by county[2] on the FHFA’s website.

The conforming loan limit also differs based on property type. Below is a table showing the conforming loan limits for different-sized properties in counties that use the baseline limit and counties that use the adjusted limit.

Why jumbo loan limits vary by area

FHFA jumbo loan limits are based on data from the U.S. HPI, which reflects home prices in each county. The purpose of the different loan limits is to reflect the variations in the housing market across the country.

A home worth $806,500 in one market might be worth significantly more in a different property market. $806,500 will go much further in St. Louis than it will in the Bay Area, for example.

If there were a single loan limit for all regions, then lower-income buyers might effectively be locked out of buying a home in more expensive markets.

Basing loan limits on country median values is meant to help the average homeowner by targeting borrowers who might struggle to buy the average home in the area.

The FHFA typically updates conforming loan limits every November. The new limits then take effect in January of the following year. The specific rate increase is based on the percentage change in the HPI from one year to the next.

Conventional jumbo loan limits

A conventional jumbo loan is a jumbo loan that is not issued or backed by any government agency. This includes private loans that from a bank, credit union, or other lending institution.

Conventional jumbo loans are any loan above the FHFA conforming limit for the relevant county. They also cannot be purchased by Fannie Mae or Freddie Mac.

Given their riskier nature, conventional jumbo loans have the highest approval standards. You usually need a credit score above 700 and a debt-to-income (DTI) ratio no greater than 43%. You’ll also have to have sufficient cash reserves and make a down payment of at least 20%.

Applying for a jumbo loan is largely the same as applying for a conforming loan: Lenders will review your assets, credit score, DTI, and other financial criteria. The underwriting process is more rigorous.

One significant difference between conventional conforming loans and conventional jumbo loans is loan-to-value (LTV) caps. Conforming loans can have an LTV of up to 97%, or nearly the entire cost of the property. Jumbo loans can cap LTV as low as 80% or even lower, depending on the lender.

FHA jumbo loan limits

The Federal Housing Administration (FHA) also provides government-backed loans for buyers in high-cost markets.

Unlike conventional loans, these “jumbo” FHA loans are backed and guaranteed by the FHA, and they typically have more lenient qualification standards. They also still fall under FHA lending guidelines and so benefit from lower down payments and DTI caps.

For the most part, jumbo FHA loan requirements are the same as conforming FHA loan requirements:

• A minimum credit score of 580
• DTI under 43%.
• Buying a primary residence with 1–4 units
• Pay a mortgage insurance premium upfront, and you cannot cancel mortgage insurance

Since they are for a higher amount than a typical FHA loan, FHA jumbo loans usually have some extra qualifications:

• You need to have at least 18 months of cash reserves
• You may have to make a larger down payment between 3% and 6%

Below are the 2025 values for FHA jumbo loan limits in low-cost areas:

VA jumbo loan limits

The VA also has jumbo loan products for qualifying veterans. One unique feature of these is that there are no VA jumbo loan limits. VA loan limits do not cap loan amounts, but rather describe the maximum amount that veterans can borrow without putting money down.

In order to be eligible for a VA loan, you must first meet the VA basic service requirements, which include 180 days of military service.

You must also have a credit score greater than 620. The VA does not impose any cash reserve requirements for jumbo loans, but you will need to meet the VA’s residual income thresholds.

If you have your full entitlement, you can qualify for a VA jumbo loan without having to make a down payment. If you have diminished entitlement due to foreclosure or other VA loans, a down payment will be required.

VA jumbo loans are advantageous because, unlike conventional jumbo loans, they get the full faith and backing of the US government.

This makes VA jumbo loans less subject to fluctuation due to market conditions. As long as you can afford it, the government will back it.

USDA and Fannie Mae jumbo guidelines

The USDA does not offer jumbo loans but instead offers rural loans based on income and ability to repay. This means that there are technically no lending limits to USDA loans, though they are practically capped based on income limits.

To be eligible, you must meet USDA income limits. As of 2025, most counties have an income limit of $119,850 for a household with 1–4 members and $158,250 for a household with 5–8 members. Income limits in high-cost counties may be adjusted upwards to reflect the higher cost of living.

Fannie Mae and other GSEs primarily buy and sell conventional loans that fall under the conforming loan limits.

Fannie Mae jumbo loans do not exist, as any loan that does not abide by their guidelines is not a conforming loan. If you get a jumbo loan, it cannot be purchased and serviced by a GSE.

How to avoid a jumbo loan

Jumbo loans have higher credit and income requirements than conforming loans, so they may not be ideal for everyone. If you are worried about qualifying for a mortgage, there are some strategies you can use to avoid a jumbo loan.

One option is using what’s called an 80-10-10 or “piggyback” loan structure. With an 80-10-10 loan, you take out a loan for 80% of the home value, make a 10% down payment, and get a second mortgage to cover the remaining 10%.

If the purchase price is near the lending limit, borrowing at an 80% LTV instead of a 90% LTV could put the loan amount underneath the threshold.

This would allow you to finance a home above the lending limit without having to take out a jumbo loan. However, you will have to manage two mortgages and monthly payments instead of just one.

Other strategies to avoid a jumbo loan include:

1. Larger down payment

By making a larger down payment, you can reduce the LTV until it’s underneath the conforming loan limit.

For instance, if the home is worth $1 million, making a 20% down payment ($200,000) could put the loan beneath the $806,500 FHFA conforming loan threshold for 2025.

2. Moving to a lower-cost area

Lending limits differ depending on the median home price. If you move to an area with a lower median home value, you could find a place that is below the limits.

Pros and cons of jumbo loans

Before taking the plunge and going for a jumbo loan, make sure you understand all the advantages and disadvantages.

Jumbo loans are higher than the FHFA conforming loan limit, so they can be used to finance more expensive properties. Borrowers with high credit and good financials can secure competitive fixed-rate interest mortgages through jumbo loans.

If you make a 20% or larger down payment, you can save costs by eliminating mortgage insurance requirements. And you can secure a jumbo loan for single-unit and multi-unit properties, as well as residential and investment properties.

On the other hand, because loan amounts are higher, approval qualifications are stricter, and the underwriting process is more thorough. You’ll likely have to make at least a 10% down payment, which is significantly more than the 3% minimum for some conforming loans.

Expect to present exhaustive documentation of your income, debt, assets, and cash reserves during the jumbo mortgage application process. And make sure you’re OK with your mortgage interest rate: Because they are for higher amounts, it’s harder to refinance a jumbo loan to secure a lower interest rate.

Overall, jumbo loans are best for high-income buyers with low debt who are trying to finance a purchase in high-priced markets.

How to qualify for a jumbo loan

Jumbo loans are fairly heterogeneous, so exact qualification will differ depending on the specific lender and property type. Generally speaking, though, jumbo loans have much stricter qualification requirements than conforming loans.

• 700 credit score: Most jumbo loans will start at a 700 minimum credit score, though you can usually get superior rates if you have a score of 740+.
• 20% down: For most conventional jumbo loans, you’ll have to make a 20% down payment. You may be able to get away with a 10% down payment if you have compensating financials.
• 6–12 months reserves: You’ll also have to prove you have at least six to 12 months of cash savings to make mortgage payments if you lose your income.
• DTI < 43%: Specific details differ based on lender, but most institutions won’t approve a jumbo loan if your DTI is greater than 43%.
• Income verification: You generally must provide proof of at least two years of stable employment income to qualify.

The bottom line

To reiterate, a jumbo loan is any loan that is greater than the FHFA’s conforming loan limit. As of 2025, that baseline limit is $806,500, which can be increased to as high as $1,209,750.

It’s very important that you understand your county’s limits before applying. Otherwise, you might find yourself shopping outside of your price range.

The best way to get the optimal loan is to shop around and to work with an agent who understands your financial profile and buying capacity. Using Clever, you can browse top agents who help buyers like you every day. You may also qualify for cash back on closing!

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