Mortgage Glossary
Jumbo Loan
A mortgage that exceeds Fannie Mae’s conforming loan limits — typically with stricter underwriting and different pricing dynamics than conventional.
What is a jumbo loan?
A jumbo loan is any residential mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac. The limits vary by county and adjust annually — in 2026, the baseline conforming limit is around $766,550 for most U.S. counties, rising to about $1,149,825 in high-cost areas like much of California, New York, and Hawaii.
Any 1-unit conventional loan above the local conforming limit is a jumbo. Jumbos aren’t eligible for Fannie/Freddie purchase, so lenders either hold them as portfolio loans or sell them into private secondary-market channels. That changes the economics: jumbo underwriting is stricter, with higher FICO requirements (typically 700+), larger reserve requirements (6–12 months of PITIA), and tighter DTI caps. Rates can be slightly higher or lower than conforming depending on the market.
For self-employed or high-net-worth borrowers, the bigger problem with conventional jumbo is documentation: 2 years of clean tax returns are required, and the personal DTI calculation often disqualifies the people who can most afford the loan.
Not directly offered by TQL — here’s how Prime Time serves jumbo-range borrowers
Total Quality Lending doesn’t originate conventional jumbo loans. We serve the same borrower segment differently:
- Prime Time non-QM — loan amounts up to $4,000,000 on a primary residence, second home, or investment property
- Six alt-doc paths: bank statement, 1099, P&L only, written VOE, asset utilization, plus full-doc — for the self-employed and complex-income borrowers conventional jumbo often shuts out
- FICO from 620 (vs. typical 700+ on conventional jumbo)
- Up to 90% LTV on primary residence at the best tier
- Interest-only and 40-year ARM options
- Investment property at jumbo loan amounts can also be done on DSCR (up to $3.5M) with no personal-income calculation
Borrowers shopping conventional jumbo who feel the documentation requirements are the bottleneck are typically better served by Prime Time.
FAQs
What's the difference between a jumbo loan and a conforming loan?
A conforming loan is any conventional mortgage at or below Fannie Mae's loan-amount limits — which vary by county. A jumbo loan exceeds those limits. Jumbos are not eligible for purchase by Fannie/Freddie, so they're either held on lender balance sheets or sold to private investors with different pricing dynamics.
Does TQL offer jumbo loans?
Not under the conventional jumbo label. Total Quality Lending's Prime Time non-QM program serves jumbo-range borrowers (up to $4M loan amount) using either full-doc or six alt-doc paths: bank statement, 1099, P&L only, written VOE, asset utilization, and DSCR. Many high-net-worth borrowers prefer Prime Time over conventional jumbo because the alt-doc paths actually work for self-employed and complex-income borrowers.
What FICO and reserves do jumbo loans typically require?
Conventional jumbo lenders usually require 700+ FICO and 6–12 months of PITIA reserves. TQL Prime Time starts at 620 FICO with reserve requirements scaled by LTV and loan size (3 months at LTV ≤ 80%, 12 months at LTV > 85% or loan > $2.5M).
Get a quote from a real human
Talk to a loan officer who can price jumbo-range scenarios on Prime Time and DSCR.