A jumbo loan is a mortgage that exceeds the conforming loan limit ($766,550 in most areas for 2025). It is used for higher-priced properties that conventional financing can't cover. Jumbo loans typically require higher credit scores (700+), larger down payments (10-20%), and have slightly higher interest rates than conforming loans.
Jumbo Loan Limits
For 2025, the standard conforming loan limit is $766,550 in most counties. Any loan above this amount is considered a jumbo loan. In high-cost areas like California or New York, conforming limits can be higher (up to $1,149,825). In San Antonio and Bexar County, the standard limit of $766,550 applies. Most homes in the San Antonio market fall within conforming limits, but higher-end properties in the Hill Country and luxury subdivisions may require jumbo financing.
Jumbo Loan Requirements
- Credit score: Minimum 700, often 720+ for best rates.
- Down payment: Typically 10-20%, though some lenders offer 5% jumbo products.
- Reserves: Most lenders require 6-12 months of mortgage payments in reserves after closing.
- Debt-to-income ratio: Typically 43% or lower. Stricter than conforming loans.
- Documentation: Full documentation required. No alternative documentation options.
How Jumbo Loans Differ from Conforming Loans
Jumbo loans are not purchased by Fannie Mae or Freddie Mac. They are kept on the lender's books or sold to private investors. This makes them riskier for lenders, which is why requirements are stricter. Rates on jumbo loans are typically 0.25% to 0.5% higher than conforming rates, though the gap has narrowed in recent years.
When You Need a Jumbo Loan
You need a jumbo loan when the purchase price exceeds the conforming loan limit for your area. In San Antonio, that means roughly homes priced above $790,000 (assuming a 3-5% down payment). Common scenarios include luxury homes, Hill Country estates, and high-end new construction in gated communities. If you are buying at this price point, a jumbo loan is almost always the right product.
San Antonio Luxury Market Context
In San Antonio, the luxury market has grown significantly. Communities like Dominion, The Springs, and newer Hill Country developments often push above the conforming limit. Many buyers in the $800K-$1.2M range do not realize they need jumbo financing. Working with a lender experienced in jumbo loans is important because the appraisal and underwriting process is different than conforming.
