Introduction:
Are you planning to get a house for your family in Washington, but you can’t afford the price? The real estate market is touching the sky these days, right? But what are you worried about when Jumbo Loan’s option is available for you? Yes, we read your mind. You don’t know the requirements for taking a jumbo loan. In this blog, we will walk you through all the necessary conditions and requirements for a jumbo loan.
Eligibility for a Jumbo Loan: Adherence to the Lending Standards
Wondering what a jumbo loan is? If the mortgage amount is greater than the loan-servicing limits established by the Federal Housing Finance Agency (FHFA), which in 2025 is $806,500 for a single-family home in all states (except for Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $1,209,750), the loan is deemed jumbo.
To be eligible for a jumbo loan, you need to meet a few requirements.
The following is the set of requirements and their details to help you understand the process and analyze if you are eligible for the jumbo loan or not:
- A Credit Score Or FICO Of At Least 700
A credit score is a figure that indicates your likelihood of repaying a loan and making on-time payments; it usually ranges from 300 to 850. While credit scoring systems employ a variety of techniques to calculate your credit score, most lenders use the FICO score, which is the most widely used technique.
According to the Federal Trade Commission, the average credit score in 2025 is set to be 715. But the lending or mortgage companies keep it between 700 and 715 or above, depending on the company and the amount of the loan or jumbo loan.
Here’s how the credit score is calculated:
| Factor | Weight in FICO Score | What It Means | How It’s Calculated |
| Payment History | 35% | Your history of making on-time bill payments. This includes credit cards, loans, mortgages, etc. | Takes into account bankruptcies, collections, late payments, and payment frequency. Missed or late payments lower this score; on-time payments raise it. |
| Amounts Owed | 30% | How much credit utilization—the percentage of available credit—are you using? | Compares all of your account balances to all of your credit limits. It is preferable to have lower utilization (<30%). |
| Length of Credit History | 15% | When did you open your credit accounts? And how long has it been? | Factors in the age of your oldest account, newest account, and the average age of all accounts. A longer history generally boosts your score. |
| New Credit | 10% | How frequently do you submit new credit applications? | This factor includes recent credit inquiries, also known as hard pulls, and newly opened accounts. Too many in a short time can lower your score. |
| Credit Mix | 10% | How many different kinds of credit do you have? | Considers your balance between revolving credit (credit cards) and installment loans (mortgage, auto loan, student loan). A diverse mix can help. |
- A Down Payment Of 10–20% For A Jumbo Loan
Moreover, a down payment is required. It may vary from company to company; however, the standard amount remains 10% to 20%. The sum of money you pay for the entire loan amount is known as the down payment. It is usually 15% of the total loan amount. And then gradually, over the years, you pay the rest of the amount in installments.
- Good Asset Reserves And A Steady Income
For eligibility for a jumbo loan, one requirement is a good or steady income flow and a bank statement. In addition to a steady, verifiable source of income, lenders want evidence that you have significant liquid assets, usually sufficient to cover six to twelve months’ worth of mortgage payments. This demonstrates your ability to manage a larger loan amount even in the event of unforeseen costs or changes in your income.
- A DTI Ratio Of Less Than 43 Percent
Your monthly debt payments are compared to your gross monthly income to determine your debt-to-income (DTI) ratio. To make sure you are not overburdened and can comfortably manage both your new mortgage and your existing debts, lenders typically want this to be below 43% for jumbo loans.
Conclusion:
Hence, by fulfilling the above-mentioned criterion for getting jumbo loans, you can easily get a verified jumbo loan through a mortgage lender for your property. Keep your head straight and your documents ready to show because, after reading this blog, we’re sure you are well aware of the whole process and just need a push to go for it.
FAQs:
How to get approved for a larger loan?
Improve your credit score, pay off your debts, and find a good lender. Then make a down payment of 20% and find yourself a suitable property to buy.
What is an example of a jumbo loan?
For instance, if you buy a $1,500,000 home and want a loan for it, you’ll have to take a jumbo loan and fulfill the criteria.
What is the payment method for a jumbo loan?
The client can pay through either cash or card.