---
title: What Is A Jumbo Loan and Is It Right For Me?
description: A Jumbo loan has a principal loan amount that is bigger than conforming loan limits. For 2018, the maximum conventional loan amount is $453,100 (ranging up to $679,650 in high-cost areas) for a single-family home.
---

[Carrington Home Loans - Knowledge Base](https://info.carringtonmortgage.com/knowledge-base)

# [What Is A Jumbo Loan and Is It Right For Me?](https://info.carringtonmortgage.com/knowledge-base/what-is-a-jumbo-loan-and-is-it-right-for-me)

 Written by [Jill](https://info.carringtonmortgage.com/knowledge-base/author/jill) | Jun 1, 2018 5:04:11 PM

A Jumbo loan has a principal loan amount that is bigger than conforming loan limits. For 2018, the maximum conventional loan amount is $453,100 (ranging up to $679,650 in high-cost areas) for a single-family home.

**Is a Jumbo Loan Right For Me?**

If you need to borrow more than the above-stated conforming loan limits, then yes, a Jumbo loan is the way to go for you.

- 30 year & 15 year loans
- Low fixed rates
- ARM loan options available
- ≥680 credit scores OK
- Finance up to 85% loan-to-value
- Maximum loan amount of $2,500,000 for primary and secondary homes, $1,000,000 for investment properties

**Things You Should Know About a Jumbo Loan:**

The requirements for Jumbo loans offered by most financial institutions are similar to those for conventional loans. However, as you might suspect, some qualifications to get a bigger loan can be more robust.

- For more expensive properties, lenders may require two separate appraisals
- Minimum down payment of 20% typically required
- Lender may require 6-to-12-months of financial reserve beyond the down payment to ensure the borrower can cover the mortgage payments
- Most Jumbos do not require private mortgage insurance
- More paperwork and documentation may be required to demonstrate financial capacity
- Because of larger amount borrowed, closing costs may be higher than with conventional loans

A Jumbo mortgage loan with a sound financial institution may be a good way for you to finance your home, especially if it is in the $450,000+ range, depending on the area. Carefully consider the financial commitment that you can afford for any home purchase, but especially for those on the higher end of the spectrum.

[View full post](https://info.carringtonmortgage.com/knowledge-base/what-is-a-jumbo-loan-and-is-it-right-for-me)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Jill"
  },
  "dateModified" : "2022-07-22T20:49:13.891Z",
  "datePublished" : "2018-06-01T17:04:11Z",
  "headline" : "What Is A Jumbo Loan and Is It Right For Me?",
  "image" : {
    "@type" : "ImageObject",
    "height" : 339,
    "url" : "https://cms.carringtonhomeloans.com/hubfs/Jumbo%20Loan%20Article%20%283%29.jpg",
    "width" : 509
  },
  "mainEntityOfPage" : "https://info.carringtonmortgage.com/knowledge-base/what-is-a-jumbo-loan-and-is-it-right-for-me",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "Knowledge Base"
  }
}
```