Jumbo loans are held on bank balance sheets (not sold to Fannie/Freddie), so pricing and guidelines are lender-specific. Three broad tiers: Prime Jumbo ($1.2M–$3M, full doc), Super Jumbo ($3M–$10M+, portfolio), and Non-QM Jumbo (alt-doc programs for self-employed or asset-rich borrowers).
Typical prime jumbo requirements: 700+ FICO, 10–20% down, 43% max DTI, 6–12 months PITI reserves post-close. Super jumbo tightens to 720+ FICO, 20%+ down, and 12+ months reserves.
Jumbo rates aren't always higher than conforming — when banks actively build jumbo portfolios, pricing can run 0.125–0.375% below conforming. Worth pulling both quotes at any loan amount near the conforming ceiling.