Jumbo Loan Calculator: What You Need to Qualify for a $1M+ Mortgage

A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2026, that baseline limit is $766,550 for a single-family home in most of the country. In designated high-cost areas — including much of California, the Northeast corridor, Hawaii, and Alaska — the limit rises to $1,149,825.

Buy a $900,000 home in Dallas with 10% down and your $810,000 loan is a jumbo. Buy the same home in San Jose with 20% down and your $720,000 loan is conforming. Location and down payment determine which category you're in.

Why the Distinction Matters

Conforming loans can be sold to Fannie Mae and Freddie Mac, which keeps them liquid and rates low. Jumbo loans can't be sold to these agencies, so lenders hold them on their balance sheets or sell them to private investors. That creates different risk pricing and stricter underwriting standards.

Jumbo loans typically require:

• Credit score: 720+ (some lenders require 740+)
• Down payment: 20% minimum (though some allow 10-15% with strong financials)
• DTI ratio: 43% or less (some lenders go to 45%)
• Cash reserves: 12 months of mortgage payments in liquid accounts
• Full income documentation (no stated-income or bank statement-only options at most lenders)
• Two years of tax returns, especially for self-employed borrowers

Jumbo vs. Conforming Rates

The rate difference between jumbo and conforming mortgages has narrowed over the past decade. Currently, jumbo rates are typically within 0.25-0.50% of conforming rates. In some periods, jumbo rates are actually lower because they attract wealthier, lower-risk borrowers.

| Loan Type | 2026 Rate (est.) | Notes | |-----------|-----------------|-------| | Conforming 30-year | 6.75% | Backed by Fannie/Freddie | | Jumbo 30-year | 7.00% | Lender-held, varies more by institution | | Conforming 15-year | 6.10% | | | Jumbo 15-year | 6.35% | | | Jumbo ARM 5/1 | 6.40% | Fixed 5 years, then adjusts |

Real Payment on a $1 Million Loan

A common scenario: $1.25M home, 20% down, $1M jumbo loan at 7%.

Monthly payment breakdown:

• Principal and interest: $6,653
• Property taxes (1.2% of value/12): $1,250
• Homeowners insurance: $200
• Total monthly housing cost: $8,103

At 28% housing expense ratio (the traditional guideline), you'd need $346,000+ in annual income to comfortably support this payment. At 36% DTI (including all debts), you'd need a minimum of ~$270,000 gross income.

Comparison: $766,000 conforming loan at 6.75%:

• Monthly P&I: $4,965
• Difference from jumbo: $1,688/month

What Lenders Scrutinize More Heavily

For jumbo loans, underwriting goes deeper than for conforming mortgages:

Self-employment income: Lenders average the last 2 years of Schedule C or K-1 income. A freelancer who made $400K last year but $200K the year before gets credited $300K in income.

Asset verification: 12 months of reserves means 12 months of full mortgage payments — not just principal and interest but taxes, insurance, and HOA. On an $8,000/month payment, that's $96,000 in reserves that can't be moved during the application.

Multiple properties: Owning other real estate adds complexity. Investment property mortgages, even with positive cash flow, add to the DTI calculation.

Gifts as down payment: Jumbo lenders often require that the down payment come from the borrower's own seasoned funds, not gifts. "Seasoned" typically means in your account for 60-90 days.

Portfolio Loans as an Alternative

Some regional banks and credit unions offer portfolio jumbo loans — loans they keep in-house rather than selling. These can be more flexible on documentation and reserves, particularly for high-net-worth borrowers with complex income. The trade-off is often a slightly higher rate (0.25-0.50%) and less standardized terms.

For business owners, physicians, or investors with strong balance sheets but irregular W-2 income, portfolio loans can be the practical path to a large mortgage.

The 10% Down Jumbo Option

Several major banks have revived 10% down jumbo programs for well-qualified borrowers. Requirements are strict: 740+ credit score, very low DTI, significant reserves, and sometimes private mortgage insurance or a slightly higher rate. Monthly costs increase due to PMI on the borrowed amount.

On a $900K loan with 10% down (instead of 20%), you're borrowing $810K instead of $720K — adding $493/month in principal and interest.

Run the Numbers

Use the CalcMoney Mortgage Calculator to model jumbo loan scenarios, compare different down payment amounts, and calculate full monthly costs including taxes and insurance.