What Is a Jumbo Loan?

Short answer

A jumbo loan is a mortgage larger than the conforming limit, which for 2026 is $832,750 for a one-unit property in Miami-Dade, Broward and most of the country (FHFA, as of October 2026). Because Fannie Mae and Freddie Mac cannot buy it, each lender sets its own rules on credit, reserves and down payment. In South Florida's luxury markets, a large share of purchases are jumbo.

Definition

Jumbo (non-conforming) loans finance amounts above the agency limit. They are held by banks or sold to private investors, so documentation tends to be fuller and reserve requirements higher than on conforming loans.

Worked example

Purchase of a $1,600,000 home in Pinecrest with 20% down ($320,000). Loan = $1,280,000, well above $832,750, so jumbo. Suppose the lender requires 12 months of reserves. If the full payment (principal, interest, taxes, insurance) is $10,500, reserves needed = 12 x $10,500 = $126,000 in verified assets after closing. Total cash to verify: $320,000 down + roughly $45,000 closing costs (including doc stamps $1,280,000 x 0.0035 = $4,480 and intangible tax $1,280,000 x 0.002 = $2,560) + $126,000 reserves = about $491,000.

Typical jumbo requirements

Every lender differs, but expect fuller documentation than conforming: two years of tax returns, all asset statements, and reserves measured in months of payment. Down payment and credit score minimums vary by loan size and property type. Rates vary daily; call for today's pricing.

• Primary homes get the best terms; second homes and condos tighten.
• Larger loans often require a second appraisal.
• Some jumbo lenders allow asset depletion or bank statement income.

Ways to avoid or shrink a jumbo

Bring the loan down to $832,750 with a larger down payment, or pair a conforming first mortgage with a HELOC or fixed second. Sometimes the jumbo is still the better deal; compare both on the same day. See jumbo loans.

In South Florida

Jumbo is everyday business in Coral Gables, Key Biscayne, Miami Beach, Pinecrest, Weston and the Fort Lauderdale waterfront. Local issues: jumbo lenders scrutinize condo buildings closely (reserves, milestone inspections, insurance), many want two appraisals above certain amounts, and windstorm plus flood insurance on a waterfront home can run into five figures a year, which affects DTI. Foreign nationals and self-employed buyers often need a non-QM jumbo rather than a bank jumbo. A broker with 100+ lenders can place a file a single bank would decline.