Purchase Tips · May 3, 2025
What Is a Jumbo Loan? Limits, Rates, and Qualification in 2025
Jumbo loans finance properties above conforming limits. Here is what you need to know about qualifying, rates, and how HMS finds the most competitive options.
When you need to borrow more than $766,550 (the 2025 conforming limit in most counties), you need a jumbo loan.
What Makes a Loan Jumbo
Conventional conforming loans follow Fannie/Freddie guidelines with set limits. Jumbo loans exceed these limits and stay on the lender's books — each lender sets their own standards, which vary significantly.
Typical Qualification Requirements
Credit 700+ (720+ for best pricing), down payment 10-30% depending on loan size and lender, reserves of 12-18+ months PITI in liquid assets after closing, DTI generally below 43%, and full income documentation as standard.
Rate Environment
On a $1M loan, a 0.25% rate difference saves $152,000 over 30 years. Shopping multiple lenders is critical — and HMS does this automatically across lenders who specialize in high-balance financing.
Jumbo in Illinois, Florida, and Indiana
High-value markets include Naperville, Lake Forest, Wilmette in Illinois; Miami Beach, Boca Raton, Naples in Florida; and the Indianapolis luxury market in Indiana. HMS closes jumbo loans regularly across all three states.
Call 309-222-8286 to explore your jumbo options.