Both JUMBO loans and conventional loans have requirements for approval, such as high credit score, proof of income, low DTI, and so forth. But, as we mentioned before, JUMBO loans are for homes with high purchase prices above your county and lender’s conforming loan limits.

Conforming Loans Jumbo Loans Min. down payment 3% with PMI (20% without PMI) Typically between 10% and 30% Max DTI 50% 38% to 43% Mortgage insurance required with down payments under 20% Varies per lender Min. credit score 620 Sometimes as low as 680, but typically 700 or higher Closing costs usually lower than jumbo loans can be higher than conforming loans due to manual underwriting, additional appraisals, etc. The Federal Housing Finance Agency (FHFA) announced that the conforming loan limit values (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises)
in 2023 will go up $79,000 to $726,200 in most areas of the U.S for one-unit properties. The cap in those areas last year is $647,200. Depends on the lender, but can be in the millions.