Jumbo Loan Limits for 2025

When you’re securing a loan for a particularly expensive house, a regular mortgage may not suffice. For 2025, if your required loan amount surpasses the $806,500 conforming loan limit set by the Federal Housing Finance Agency (FHFA) in most counties, then you’ll need to get a jumbo loan. In certain “high-cost areas” though, this limit may be set higher to account for higher home values.

Work with a financial advisor to build a long-term financial plan that accounts for mortgage payments.

Jumbo Loan Limits for 2025

A jumbo loan is a mortgage that exceeds the conforming loan limit set by the FHFA for a given area. The most common conforming loan limit for 2025 is $806,500, which means any mortgage that’s larger than that is a jumbo loan. Loans above these limits are not under the coverage of government entities Fannie Mae and Freddie Mac. That makes them inherently riskier than a conforming loan.

While the aforementioned $806,500 limit is generally seen as the standard for 2025, actual county-level limits can vary. These variations occur because of differing average home values, state lending limits and real estate market activity.

For instance, every county in Alaska and Hawaii has a $1,209,750, which is the highest it can be. American territories like Guam and the U.S. Virgin Islands have the same limit.

Below is an overview of every U.S. state, county or territory that has a conforming loan limit above the $806,500 standard. If the area you’re looking to buy a home isn’t below, its loan limit is $806,500.

Typical Requirements for Getting a Jumbo Loan

Before you leaf through local listings, it’s always best to have a good idea of how much house you can afford. If you earn a large income, have some significant savings and have a good credit history, a jumbo loan may be an option.

Qualifying for a jumbo loan is undoubtedly more difficult than qualifying for a conforming loan. For starters, many lenders require a strong credit score of 700 or higher for approval. Whereas conforming loan homebuyers may be able to get away with a lower score by making a bigger down payment, jumbo loan homebuyers usually won’t have that same luxury.

Next, you’ll also need to prove that you are as financially stable as you say you are. Your lender may ask for your tax returns, recent paychecks, W-2 or 1099 forms and bank account statements. These factors will have a major effect on the jumbo loan interest rate you receive.

Lastly, lenders only look to approve homebuyers who have a low or manageable debt-to-income (DTI) ratio. In most cases, you’ll need a DTI ratio of about 40% or less. The only way you might get around this is if you have a large savings to back you up.

Why Are Jumbo Loan Limits Necessary?

Conforming loan limits were first implemented by the Housing and Economic Recovery Act of 2008. They were put in place to make Freddie Mac- and Fannie Mae-backed mortgages easier to access for homebuyers getting conforming loans. The FHFA typically changes these limits on an annual basis to account for price movement in the real estate market.

As a result of the above legislation, jumbo loans have become especially risky for lenders, hence the stringent approval requirements. This is because Fannie Mae and Freddie Mac will not back mortgages that are larger than the conforming limits. As a result, lenders will take the hit if you default on your loan.

Bottom Line

Ultimately, gaining the trust of your lender is the best way to increase your chances of getting a jumbo loan. Ensure your credit score is up to par, your debts are minimal and your steady income will be able to cover your payments throughout the loan.

Tips for Finding the Right Lender

• Before you sign off on any loan, it’s important that you understand your current financial situation and future financial plans. A financial advisor can help with that. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you’re interested in taking out a large loan, you must do your research. SmartAsset’s list of the jumbo mortgage loan lenders can help start your search.
• If you’re a first-time homebuyer, you’ll want to make sure you’re not missing any important information. Check out SmartAsset’s guide to mortgage lenders for first-time homebuyers to learn more.

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