What Is a Jumbo Loan and Who Really Needs One?
- Alexi Mencio
- Sep 3, 2025
- 2 min read
If you’re buying a home in a high-cost area or looking at luxury properties, you may quickly discover that a standard mortgage won’t cover the full purchase price. That’s where jumbo loans come in.
At Trust Lending, we specialize in helping borrowers navigate these larger loan options, ensuring you have the right financing in place for your dream home. Here’s what you need to know.
1. What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
For 2025, the conforming loan limit in most areas is $806,500. If your home purchase requires financing above that amount, you’ll need a jumbo loan.
2. When Do You Need a Jumbo Loan?
You may need a jumbo loan if:
You’re buying a high-value or luxury property.
You live in a high-cost housing market (like California, New York, or parts of Florida).
You want to finance more than the conforming loan limit allows.
3. Jumbo Loan Requirements
Because jumbo loans represent a higher risk for lenders, qualifying typically requires stronger financials:
Higher Credit Score: Usually 700+
Larger Down Payment: Often 10–20%
Lower Debt-to-Income Ratio (DTI): Generally under 43%
Stronger Reserves: Some lenders require several months’ worth of mortgage payments in savings
At Trust Lending, we work with a variety of investors to help borrowers with competitive jumbo loan solutions.
4. Benefits of a Jumbo Loan
One Loan vs. Multiple: Finance the full amount without taking out multiple mortgages.
Competitive Rates: Jumbo rates are often more attractive than people expect.
Flexibility: Options for fixed-rate or adjustable-rate jumbo loans.
Luxury Property Access: The key to financing dream homes in competitive markets.
5. Who Really Needs a Jumbo Loan?
A jumbo loan is ideal for:
Professionals or executives purchasing high-value homes.
Families upgrading in expensive housing markets.
Investors looking at luxury or multi-million-dollar properties.
If your financing needs exceed the conforming loan limits, a jumbo loan may be the best path forward.
Jumbo loans open the door to properties beyond the reach of conventional mortgages. While the qualification process is more demanding, the rewards — competitive rates, larger loan amounts, and the ability to secure your dream home — make it worthwhile.
At Trust Lending, we specialize in guiding borrowers through the jumbo loan process with ease and transparency.
Comments