Conventional loans are not backed by government agencies and typically offer the most flexibility fo
Jumbo loans exceed conforming loan limits and are designed for luxury properties and homes in high-c
Conventional vs Jumbo Loans: When Do You Need a Jumbo?
Compare conventional conforming loans with jumbo loans for high-value properties that exceed conforming loan limits.
At a Glance
Quick comparison of key requirements
Feature-by-Feature Comparison
See how Conventional Loans and Jumbo Loans stack up
| Feature | Conventional Loans | Jumbo Loans |
|---|---|---|
| Loan Amount | Up to $766,550 | Above $766,550 |
| Down Payment | 3-20% | 10-20%+ |
| Credit Score | 620+ | 700-720+ |
| Reserves Required | 0-6 months | 6-12+ months |
| Interest Rates | Standard conforming rates | Slightly higher |
| DTI Requirements | Up to 50% | Typically 43% or less |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
Use a conventional conforming loan whenever possible for easier qualification and better rates. Jumbo loans are necessary for high-value properties but require stronger credit, more reserves, and larger down payments.
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Frequently Asked Questions
Common questions about Conventional Loans vs Jumbo Loans
Frequently Asked Questions
Typically yes, jumbo rates are 0.25-0.5% higher than conforming rates, though in some market conditions they can be competitive or even lower for the best borrowers.
This comparison is for informational purposes only and does not constitute financial advice. Rates, terms, and program availability are subject to change without notice and may vary based on creditworthiness, property type, loan amount, and other factors. Contact NMHL for current rates and personalized loan options. NMHL NMLS# 2557591. Equal Housing Lender.