A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2025, the maximum loan amount for a jumbo loan will vary depending on the location of the property, as these limits can differ based on housing prices in various regions.
As of 2025, the baseline conforming loan limit is projected to be around $726,200 in most areas of the United States. This amount is subject to change based on housing market trends and the annual adjustment made by the FHFA. For high-cost areas, the jumbo loan limits can be considerably higher, sometimes reaching upwards of $1 million or more.
In general, a jumbo loan is any loan that exceeds these conforming limits. Therefore, borrowers seeking a jumbo loan in 2025 might look at amounts starting from approximately $726,201 and can potentially go well beyond $1 million, depending on the specific circumstances of the property’s location.
Certain markets, especially those in metropolitan areas with higher real estate prices, often have higher jumbo loan limits. For instance, cities like San Francisco, New York, and Los Angeles typically see jumbo loan limits that can exceed $1.5 million.
When considering a jumbo loan, it's essential to understand that these loans come with stricter lending requirements. Lenders often require a higher credit score, increased down payment (usually ranging from 10%-20%), and a lower debt-to-income ratio compared to conventional loans.
In summary, the maximum loan amount for a jumbo loan in 2025 will largely depend on the location of the property, with amounts starting from just above the baseline conforming limit and potentially scaling much higher in high-cost markets. Prospective borrowers should consult their lenders to get specific information tailored to their situation.
