Jumbo Home Loans
A Jumbo mortgage is a home loan for balances that exceed the conforming loan limit set by the Federal Housing Finance Agency (FHFA) each year — $832,750 in most counties across the U.S. in 2025, and ranging as high as $1,249,125 in certain geographical spots known for higher housing prices. If you want to finance a dollar amount higher than that standard limit to buy your home, you’ll need a Jumbo loan.
Get Started
A Jumbo Loan May Be a Great Fit if You:
A Jumbo Loan May Be a Great Fit if You:
- Maintain a high credit score and healthy cash reserves
- Have a debt-to-income (DTI) ratio no greater than 50%
- Are purchasing or refinancing a property that requires a loan amount above the standard conforming limit
See What a Jumbo Loan Can Do for You
See What a Jumbo Loan Can Do for You
Finance up to $3.5 million 
Get a competitive interest rate 
Minimize the need for secondary financing 
Buy an expensive property without having to exceed 20% down 
Tap into your home equity with a cash-out refinance Today's Jumbo
Loan Rates
A Pennymac Loan Expert can help you find the best rate and loan type to suit your goals.
Get my custom rateRates display is temporarily unavailable.
For a rate quote, please call a Pennymac Loan Officer at (866) 549-3583.
| Loan Term | Rate | APR* | Points |
|---|
| Loan Term | Rate | APR* | Points |
|---|
*
Please keep in mind that the mortgage rates shown above are based on certain assumptions, which may differ from your personal home loan scenario. Rates valid on: and are subject to change without notice. Discount points apply, view assumptions for details.
Ready to take the first step?
We're here to help.
Resources & Tools
Customized Rate Quote
Create an instant estimate of your monthly payment and interest rate for the type and length of the loan, based on your information and current rates.
Personalize My Rate
Mortgage Learning Center
Explore quick reads to get the information you need, so you can feel confident on your homeownership journey.
Search Articles
Home Loan Calculators
Use simple calculators to get a clearer picture of how much you can borrow, how much your payments might be, and whether to rent or buy.
Start Calculating
Home Value Estimator
Receive an instant home value estimate and up-to-date information on any property. View recent home sales in your area of choice.
Try It NowTypes of Jumbo Home Loans
Jumbo Purchase Loan
- Borrow up to $3.5 million to buy a home
- Minimize the need for secondary financing
- Finance an expensive property that exceeds standard loan limits for the region
- Use for several property and occupancy types including 2-unit properties, second homes and investment properties
Borrowers with a credit score of 700+ and up to 24 months of cash reserves (depending on loan amount)
Jumbo Refinance
- Lower your existing rate and monthly payment
- Take advantage of market improvements to save on your mortgage
- Reduce the amount of interest paid over the life of the loan
Homeowners with an existing Jumbo loan looking to save on their mortgage payment
Those with a strong credit profile of 700+ and up to 24 months of cash reserves
Jumbo Cash-Out Refinance
- Access up to $500,000
- Use cash from your equity for any expense or to save as emergency funds
- Consolidate high-interest debt into one low monthly payment
- Invest in your home with renovations and repairs
Eliminating bills like credit cards and auto payments; making home improvements, covering unplanned expenses, funding an education.
Frequently asked questions
A jumbo loan is a non-conforming loan that allows a borrower to purchase or refinance a high-value property that exceeds the conforming loan limits. For most areas of the country, the current conforming loan limit, as set by the Federal Housing Finance Agency (FHFA), is $806,500. This limit affects whether the loan can be purchased by the government entities Fannie Mae and Freddie Mac — a process which helps lenders take on more new mortgages than would otherwise be possible.
If you’re considering a jumbo mortgage, keep in mind that the down payment requirement (anywhere from 10.01% to 35%) will vary depending on how much the loan amount will be, and the rate may be a little higher than what’s offered on a conforming loan. And because these loans are considered riskier for a lender, the underwriting guidelines tend to be more stringent.
Contact a Pennymac Loan Expert to learn more.
Compared to conforming loan products, jumbo loans typically have more stringent eligibility and qualification standards.
In order to be considered for a jumbo loan, you’ll want to meet the following requirements:
- Strong credit — Most lenders require credit scores of 700 or higher depending on the transaction, though the FICO requirement may vary from lender to lender.
- Minimum 10.01% - 35% down payment — Depending on loan amount, you can secure a jumbo loan for as little as 10.01% down to borrow up to $2 million. Larger loans require 20 - 35% down.
- Cash reserves — Depending on how much you are borrowing, you should have anywhere from 3 to 24 months of cash reserves. Ask a Pennymac Loan Expert to find out how much you would need for your personal scenario.
- Proof of income — Steady income is required to support repayment ability. And as with any loan application, self-employed borrowers will need to supply two years of tax returns.
- Low debt-to-income ratio (DTI) — A debt-to-income ratio of 50% or less is generally required. This ratio is the percentage of your monthly gross income that is paid out to recurring debts.
As a top lender in the U.S. for jumbo loans, Pennymac is able to offer very competitive rates and specialized service to homebuyers and homeowners looking to purchase a home, lower their existing mortgage rate and payment, or harness the financial advantages of home equity. Our licensed Loan Experts are here for you every step of the way to help you accomplish your home financing goals.
To discover which mortgage program works best for you, connect with a Pennymac Loan Expert today.
Pennymac jumbo loans require a credit score of 700 or higher, along with a robust and steady income that supports repayment on the loan. You will also need to have healthy cash reserves to provide extra assurance that you can handle the monthly payments.
Although there are many other factors considered including credit history, the jumbo loan process for borrowers is very similar to that of a conventional loan. The documentation needed is comparable, but with slightly stricter requirements for most situations.
Jumbo home loans can be used for a wide range of property types:
- Single family homes (attached/detached)
- Planned unit developments (attached/detached homes with a homeowner’s association)
- Condominiums
- 1-2 unit primary and investment properties
- 1 unit second or vacation home
You may use cash gifts towards the costs of a jumbo loan. However, at least 5% of the down payment must come from your own funds. The minimum amount required to come from your own sources may vary depending on the specifics of your purchase loan.
No, not always. While some lenders require 20% down, Pennymac offers jumbo loans with as little as 10.01% down if you meet other credit and financial requirements and the loan amount does not exceed $2 million. Larger amounts borrowed will raise the down payment requirement, with up to 25% down needed for a $3.5 million jumbo mortgage.
Related Articles
