Jumbo vs Conventional loan — side by side.
When your loan crosses the conforming limit, what actually changes? Rates, down payment, reserves, and approval requirements compared.
| Feature | Jumbo | Conventional |
|---|---|---|
| Loan amount | Above county conforming limit (e.g. > $832,750) | At or below county conforming limit |
| Min down payment (primary) | 10%+ on most shelves | 3%–5% |
| Min down payment (second home) | 10%+ | 10% |
| Min down payment (investment) | 15%+ | 15%–25% |
| Minimum credit score | 680 (most shelves), 720+ preferred | 620 typical |
| Max DTI | 43%–45% standard, up to 50% with reserves on select shelves | Up to 50% |
| Reserves | 6–12 months PITI | 0–6 months depending on program |
| Mortgage insurance | Often no PMI even <20% down (lender-paid pricing) | PMI on loans above 80% LTV; removable at 80% |
| Interest rates | Often within 0.125% of conforming — sometimes lower | Lowest market rates |
| Max loan amount (with us) | Up to $5M | County conforming limit ($832,750 baseline) |
| Doc types accepted | Full doc, bank statement, asset depletion, P&L, foreign national | Full doc (W-2 / tax returns) |
| Approval timeline | 30–45 days (more underwriting scrutiny) | 21–30 days typical |
Which one wins?
Conventional wins when your loan amount fits under the county conforming limit. You get lower down payments (as little as 3%), shorter timelines, and the ability to remove PMI at 80% equity.
Jumbo wins when the home you want costs more than conforming financing allows. With 10% down primary jumbo and no PMI on lender-paid pricing, jumbo is often cheaper monthly than putting an extra $100K down to stay under the conforming limit.
Run both: We routinely price a conforming + larger down payment scenario versus a jumbo + smaller down payment scenario. The right answer depends on the rate spread that week and your reserves.
Jumbo vs Conventional FAQs
When does my loan become jumbo?+
Any loan amount above the county conforming limit is jumbo. The 2026 baseline conforming limit is $832,750; high-cost counties go up to $1,249,125. In Denver County the threshold is $862,500; in Boulder it's $879,750; in Summit it's $1,092,500.
Is a jumbo rate higher than conforming?+
Surprisingly, often no. Jumbo rates are typically within 0.125% of conforming and sometimes even lower, because jumbo borrowers are high-credit, high-asset profiles lenders compete for. The real cost difference is the larger down payment, not the rate.
Can I avoid jumbo by putting more down?+
Yes — if your loan amount falls below the county conforming limit after a larger down payment, you qualify for conforming. We often run both scenarios side-by-side to see whether the rate savings justify the additional down payment.
What about high-balance conforming?+
High-balance conforming applies between the standard $832,750 and the local high-cost limit (e.g. $862,500 in Denver). Rates carry a small add-on of 0.25%–0.50% versus standard conforming but are still meaningfully cheaper than jumbo.
Do jumbo loans require more reserves?+
Yes — 6 to 12 months of PITI (principal, interest, taxes, insurance) is typical for jumbo, versus 0–6 months for conforming. Reserves can usually include retirement assets at 70% of their value.
Are jumbo loans available for self-employed buyers?+
Yes — we have bank statement jumbo, P&L-only jumbo, and asset depletion jumbo programs for self-employed buyers who don't show enough qualifying income on tax returns. Down payments are usually 15%–20%.
Not sure which loan fits?
We'll price both side-by-side so you can pick on the actual monthly payment.