What Is a Jumbo Loan and Who Needs One?

 f you're buying a luxury home or property in a high-cost market, a jumbo loan may be your best financing option. Unlike conventional loans, jumbo loans exceed the Federal Housing Finance Agency’s (FHFA) conforming loan limits—currently $766,550 in most areas (as of 2025), and higher in select high-cost regions.

Jumbo loans are designed for qualified buyers who need to borrow more—often $1 million or more—to finance their purchase. They can be used for primary residences, second homes, or investment properties.

Keep in mind, jumbo loans typically require:

• Excellent credit (700+)

• Strong income and asset documentation

• Lower debt-to-income (DTI) ratios

• Larger cash reserves

Despite their stricter requirements, jumbo loans offer competitive rates, especially for borrowers with strong financial profiles.

If you're looking to buy a high-end property or refinance a luxury home, reach out to see if a jumbo loan fits your financing strategy.

Joe Costa | The Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

619-990-7552