Jumbo loans for purchases and refinances above conforming limits
A jumbo (non-conforming) mortgage finances a home for more than the conforming loan limit in your county. Buyers and refinancers use jumbo loans for higher-priced primary homes, second homes, and some investment properties. Expect stronger credit, larger down payments or equity, and more reserves than a typical conforming loan—exact overlays vary by lender.
NMLS #1463065 · Licensed in AZ, CA, CO · Reviewed by Evan Cardenas
Key facts
Figures below are typical industry education ranges. Exact overlays, credit floors, CLTVs, and timelines change—confirm with Evan against current NEXA Lending guidelines and your scenario.
| When you need jumbo | Loan amount above the conforming limit for Maricopa County (see 2026 limits for Maricopa County: FHA $557,750 for a one-unit home ($714,000 two-unit, $863,100 three-unit, $1,072,600 four-unit), and the conforming limit is $832,750 for a one-unit home, the same in every Arizona county. Loans above the conforming limit are jumbo loans. Check current limits at https://entp.hud.gov/idapp/html/hicostlook.cfm.). |
|---|---|
| Down payment / equity (typical) | Often higher than conforming—commonly 10–20%+ depending on occupancy and credit (confirm overlays). |
| Credit (typical) | Stronger scores usually required for best pricing; mid-tier scores may still qualify with more down/reserves. |
| Reserves | Often several months of PITI; larger loans need more. |
| Property types | Primary, second home, and some investment—guidelines differ. |
| Terms | Fixed and ARM options are common in the jumbo market. |
Who it's best for
- Buyers in higher-priced markets above conforming limits
- Move-up buyers needing a larger loan amount
- Refinancers with jumbo balances seeking rate/term or cash-out
Who should look elsewhere
- Purchases that fit under conforming or high-balance conforming limits
- Borrowers without the reserves or down payment jumbo overlays require
Pros and cons
Pros
- Finances homes above conforming caps
- Fixed and ARM structures available
- Can be paired with strong-credit pricing when markets are favorable
Cons
- Higher down payment / equity expectations
- More reserve requirements
- Appraisal and property standards can be stricter
- Pricing not always better than conforming
How it works in 4 steps
Discovery or apply
Share goals, credit picture, property, and timing. We check which product path fits.
Compare scenarios
See payment, cash to close or draw amount, and trade-offs before you choose.
Underwriting / automation
We clear conditions—or, on automated equity products, complete e-sign and verification steps.
Close & fund / draw
Sign documents, fund the loan, and (for HELOC) start using your line when available.
Illustrative payment on a $900,000 jumbo purchase
Assume $900,000 price, 20% down ($180,000), loan amount $720,000, 30-year fixed. At a sample note rate of 6.75% (placeholder only—not today's rate): P&I ≈ $4,670/month before taxes and insurance.
Same price with 15% down (loan $765,000) at the same sample 6.75%: P&I ≈ $4,962/month before taxes, insurance, and any mortgage insurance if required by the investor.
Not a rate quote, APR disclosure, or commitment to lend. Actual rates, caps, fees, and payments depend on credit, occupancy, property, index, margin, lock period, and market conditions. Ask Evan for a personalized Loan Estimate or HELOC/HELOAN disclosure.
Frequently asked questions
What counts as a jumbo loan in 2026?
A jumbo loan is generally any mortgage above the conforming loan limit set for the county (and unit count). Limits change annually. For Maricopa County, see 2026 limits for Maricopa County: FHA $557,750 for a one-unit home ($714,000 two-unit, $863,100 three-unit, $1,072,600 four-unit), and the conforming limit is $832,750 for a one-unit home, the same in every Arizona county. Loans above the conforming limit are jumbo loans. Check current limits at https://entp.hud.gov/idapp/html/hicostlook.cfm.. Amounts above that limit typically need jumbo (non-conforming) underwriting and pricing.
How much down payment do jumbo loans require?
Many jumbo programs look for larger down payments than conforming loans—commonly in the 10–20%+ range depending on occupancy, credit, and loan size. Exact minimums are lender overlays, not a single national rule.
How do jumbo rates compare with conforming loans?
Jumbo pricing moves with credit markets and investor appetite. Sometimes jumbo rates are close to conforming; sometimes they are higher. Always compare a live quote for your credit, LTV, and property type rather than assuming a spread.
What reserves do jumbo lenders want?
Jumbo underwriting often requires more cash reserves (months of PITI) than conforming loans, especially on larger balances or investment/second homes. Reserves can be a bigger hurdle than the rate itself.
Can I refinance a jumbo loan?
Yes—rate-and-term and cash-out jumbo refinances exist when equity, credit, and property guidelines are met. Break-even math still applies.
Jumbo vs. high-balance conforming—what's the difference?
Some high-cost counties have higher conforming ("high-balance") limits. Loans under that higher limit may still be conforming. True jumbo sits above the applicable conforming limit for that county.
Educational content only. Guidelines change. Confirm details with Evan Cardenas, NMLS #1463065, before you apply.
Price a jumbo scenario
Evan will check conforming vs. jumbo and reserve requirements. Call (480) 334-7827.