A loan amount above the applicable conforming loan limit may use a jumbo program. The Federal Housing Finance Agency sets conforming limits annually, and lender programs can differ by borrower, property, and loan structure.
Use this guide to prepare questions for a qualified lender. It is general information, not lending advice, and a lender must confirm current terms and eligibility.
How Jumbo Differs from Conforming
Questions to resolve with a lender before you write an offer.
Above the Conforming Limit
FHFA sets annual conforming loan limits, which vary by location. A loan above the applicable limit may be a jumbo loan. Confirm the current county limit and loan classification with a lender.
Down Payment and Reserves
Down payment, reserve, credit, and debt-to-income requirements are program-specific. Ask the lender for written requirements that apply to your borrower profile and property.
Documentation
A lender may request documentation of income, assets, liabilities, and funds used for closing. Ask what documents are needed and when they must be current.
Property and Appraisal Review
The transaction-specific items to discuss early.
Appraisal
Appraisal requirements, including whether more than one appraisal is needed, are lender- and program-specific. Discuss the process, timing, and contingency terms before making an offer. Appraisal guide →
Assets and Liquidity
Discuss how the lender evaluates assets, reserves, investment accounts, and any pledged-asset or portfolio options. Availability and suitability depend on the lender and borrower.
Property Type
Homesites, construction, association obligations, docks, and unusual improvements can affect loan eligibility or documentation. Share the property details with the lender early.
Preparing the Offer
Keep financing questions tied to the actual contract.
Ask What the Approval Means
Ask the lender whether a prequalification, preapproval, or conditional approval has been issued and what documentation or property review remains. Seller response and closing timing depend on the contract and transaction.
Coordinate Early
Share the contract timeline and required documents with the lender and your advisers early. Confirm responsibilities and dates with the professionals handling the transaction. Closing timeline →
Plan for Contingencies
Review financing and appraisal contingencies, available funds, and alternatives with your lender, attorney, and advisers before committing to terms. Financing overview →
Frequently Asked Questions
The questions buyers and sellers ask David first.
What makes a loan “jumbo”?
A loan amount above the applicable conforming limit may be a jumbo loan. The threshold changes and can vary by location; a lender confirms the classification for your purchase.
How much do I need to put down on a jumbo loan?
Down payment and reserve requirements vary by lender, loan amount, property, and borrower profile. Ask the lender for the current written requirements for your application.
Will I need two appraisals?
Possibly. Appraisal requirements are lender- and program-specific, so ask the lender before you rely on a timeline.
Is jumbo financing slower?
Timing depends on the lender, appraisal process, property, documentation, and contract deadlines. Ask the lender for an estimate based on your transaction and keep the contract team informed.