By definition, jumbo loans allow you to access high-value properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). But what is the maximum amount of jumbo mortgage that you can get?
The lower limits of a jumbo loan are well-established, and updated on an annual basis – $766,550 in most areas for a single family home, going up to $1,149,825 for high-cost areas such as some parts of California and New York.
However, the upper limits are not that straightforward – in this article, we will discuss the maximum amount of jumbo mortgage that you can get if you are looking to purchase a high-value property.
So, let’s get right into it?
What Is The Upper Limit For Jumbo Mortgage in 2024?
While the Federal Housing Finance Agency establishes a lower limit for jumbo loans, it doesn’t actually set an upper limit.
That’s because these loans are designed to meet your needs of financing a luxury or an investment property that exceeds the conforming loan limits, and the amount is largely determined by your financial situation.
In other words, the upper limit is not predetermined by the FHFA, and it will vary between each individual borrower based on various factors, which we’ll cover in the next section.
What Amount of Jumbo Mortgage Can I Borrow in 2024?
As we just mentioned, the amount of jumbo mortgage that you can borrow will vary based on your financial situation – here are some of the most important factors that impact it:
Creditworthiness
Your creditworthiness is among the key factors that affect the amount of jumbo mortgage that you can borrow for your investment or luxury property.
Because jumbo loans are associated with larger amounts compared with conventional loans, they often require a higher credit score to mitigate the risk for lenders in the case of defaulting.
Most lenders will require a credit score of 700 or above, but you can get better rates and higher loan amounts if you have a score of 740 or higher. In comparison, conventional loans typically require scores between 600 and 680.
Debt-to-Income Ratio (DTI)
Another important factor that impacts the maximum amount of a jumbo mortgage you can get is your Debt-to-Income Ratio (DTI). Most lenders will prefer a DTI of 43% or lower, but in some cases, it should be as low as 36%.
This ratio measures your monthly debt payments relative to your monthly gross income, and you can lower it by either acquiring new income sources, or reducing the amount of debt you have.
Income & Employment
The amount of a jumbo mortgage that you can borrow is also determined by your income and employment history.
The larger the loan amount, the higher the income that you may need in order to qualify. For example, a jumbo loan of $1.5 million might require an annual income of $300,000 or more, depending on the DTI ratio and other factors.
You will have to provide a thorough documentation of your income, including:
- W-2 forms for the past 2 years
- Federal tax returns for the past 2 years
- Pay stubs, usually for the last 30 days
- Documentation for other sources of income
If you are self-employed, you may also have to provide:
- Business tax returns
- Profit and loss statements
- Letter from a CPA confirming the income
To increase your chances of approval and get better terms and rates, you should be able to prove a stable employment history, usually with the same employer or in the same industry.
Cash Reserves
Cash reserves also have an impact on the amount of a jumbo mortgage that you can borrow. You may be required to have substantial cash reserves to mitigate the lenders’ risk, and ensure that you can continue making the mortgage payment in the event of financial difficulties.
The general requirement is to provide cash reserves of 6 to 12 months of mortgage payments (including principal, interest, taxes and insurance), but 18 to 24 months may be required for larger jumbo loans.
Some examples of acceptable cash reserves include:
- Cash in checking and saving accounts
- Money market funds
- Certificates of Deposit (CD)
- Stocks, bonds, mutual funds
- Retirement accounts like 401(k)
However, keep in mind that the last two may be subject to some conditions. For example, lenders may only count a percentage of stocks, bonds and mutual funds (70-80%) to account for potential market volatility.
For retirement accounts, the funds may be discounted to 60% of the vested value due to potential tax penalties and restrictions on withdrawals.
These are all some key considerations when it comes to determining the maximum amount of a jumbo mortgage.
Loan-to-Value Ratio (LTV)
Another factor that you should take into account when it comes to the amount of a jumbo mortgage is the Loan-to-Value Ratio (LTV), which compares the loan amount to the appraised value of the property.
For example, if a lender provides a loan worth half the value of the asset while the buyer covers the rest in cash, the LTV is 50%. Ideally, you should aim for a lower LTV ratio – 80% or less, as this indicates lower risk for the lender.
The lower risk often translates to better loan terms and a higher maximum loan amount.
Property Appraisal
When it comes to the amount of a jumbo mortgage, the appraised value of the property also matters – if the appraisal comes in lower than the purchase price, it could reduce the potential amount you can borrow.
On another hand, if the appraisal value is higher than the purchase price, you are more likely to borrow a higher amount as well.
To give you a practical example, if the appraised value of the property is $1,000,000 and the lender offers an 80% LTV ratio, the maximum amount of a jumbo mortgage you can borrow would be $800,000.
In addition, the type of the property (single-family home, condo, etc.) and its location can also impact its value.
Down Payment
Because they are associated with high-end properties that exceed conforming limits, jumbo loans typically require a large down payment to mitigate the potential risk for the financial institution lending you the money.
A higher down payment means lower risk for the lender, which can also increase the amount of a jumbo mortgage that you can borrow. You may also have to prove that the down payment comes from your own funds, and not from loans or gifts.
Market & Economic Conditions
And last but not least, another factor that impacts the amount of a jumbo mortgage that you are able to secure are the market and economic conditions.
On one hand, the state of the housing market can influence lender policies and loan limits – in a robust market, financial institutions are more willing to extend larger loans.
General economic conditions, including interest rates set by the Federal Reserve, can also impact the availability and cost of jumbo loans.
How Often Are Jumbo Loan Limits Updated?
When it comes to jumbo loan limits, another thing to keep in mind is that they are not the same every year. They are updated on an annual basis by the FHFA, with the updates typically being announced in November, but taking effect in January of the following year.
The updates are based on changes in the average home prices across the United States. If home prices increase, the conforming loan limits are likely to rise as well, and vice versa.
About Jet Direct Mortgage
If you are ready to buy the luxury or investment property of your dreams, Jet Direct Mortgage can help you find the perfect loan fit for your needs and goals.
Our mission is to set a high standard in the mortgage industry through unmatched customer service, from the application process to the post-closing stage.
Our team of experienced professionals will guide you through the home loan process step by step, so you feel confident in your knowledge and make a well-informed decision on the best mortgage for you.
Are you ready to get started? Apply now for your jumbo loan!
FAQ
Are Jumbo Loan Interest Rates Higher Than Conventional Loans?
Yes, jumbo loan interest rates are generally higher than those for conventional loans. This is because jumbo loans exceed the conforming loan limits set by the FHFA, making them riskier for lenders.
As a result, lenders charge higher rates to offset this risk. However, the specific rate you receive depends on factors like your credit score, down payment, and the overall market conditions. Shopping around can help you find the best rates.
Can I Use a Jumbo Loan for a Second Home or Investment Property?
Yes, you can use a jumbo loan to finance a second home or investment property. However, the requirements are often stricter compared to primary residences.
Lenders typically require higher credit scores, larger down payments, and more substantial cash reserves for these types of properties.
Additionally, interest rates for jumbo loans on second homes and investment properties may be higher due to the increased risk associated with these loans.
How Long Does the Approval Process Take for a Jumbo Loan?
The approval process for a jumbo loan typically takes several weeks to a few months depending on the financial institution.
This extended timeline is due to the larger loan amounts and stricter qualification criteria, which require thorough documentation and more extensive underwriting.
Lenders will meticulously review your financial profile, including credit history, income, assets, and property appraisal, to ensure you meet the higher standards for jumbo loans.
How Much Can I Borrow with a Jumbo Loan?
The amount you can borrow with a jumbo loan varies widely and depends on several factors, including your credit score, income, debt-to-income ratio, cash reserves, and the property’s appraised value.
There is no fixed upper limit, but lenders typically set their own maximum loan amounts based on their risk tolerance and lending policies. High creditworthiness and substantial financial resources can increase your borrowing potential.

Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.