• Jumbo loans, which exceed conforming loan limits, are common in high-cost housing markets. With loan limits varying by county. It's essential that agents understand the various loan limit requirements within the counties they serve. That's why it's crucial to set clear expectations upfront and ensure your clients have an understanding of the qualification requirements. 
  • Not all lenders offer jumbo loans, so agents should find a lender that specializes in providing jumbo mortgages within their local area.
  • Clear communication and proactive guidance from agents can streamline the process, reduce delays, and add significant value in higher-end real estate transactions.

In luxury and high-cost housing markets, it's not unusual to see listing prices that far exceed conforming loan limits. For experienced real estate agents, this may mean navigating the more complex area of jumbo loans. 

These high-value mortgages generally necessitate an additional layer of diligence, effective communication, and strategic planning. For agents who understand the process, jumbo loans may offer an opportunity to provide tremendous value to well-qualified buyers and high commissions for the agent.

Jumbo loan guidance often isn’t just about knowing the numbers. It's also frequently about anticipating client concerns, preparing documentation in advance, and fostering strong relationships with lenders. Here's what to consider to be a trusted real estate advisor for your jumbo loan buyers.

Understanding Jumbo Loan Limits

A jumbo loan, also referred to as a non-conforming loan, is a mortgage that exceeds the limits established by the Federal Housing Finance Agency (FHFA).[1] These limits vary by location, based on median home prices. In many areas, the 2025 conforming loan limit is $806,500 for a single-family home.[2] However, in high-cost regions such as Alaska, Guam, Hawaii, and the U.S. Virgin Islands, the ceiling can increase to $1,209,750.[3]

Buyers needing a loan above these limits must pursue a jumbo loan. Unlike conforming loans, these aren’t backed by Fannie Mae or Freddie Mac, which means lenders will assume all the risk and therefore enforce stricter qualification requirements. They may also charge higher rates. As an agent, it’s crucial to stay informed about county-specific Jumbo loan limits, which can change annually.

What Makes Jumbo Loans Different

While the concept of a jumbo loan may seem straightforward, in other words, a larger loan, a larger (or more expensive) house, the actual underwriting process is anything but equal to more standard loan types. Jumbo loans come with unique characteristics that can impact both the buyer’s experience and your transaction timeline.

Stricter Lending Criteria

Since jumbo loans aren’t government-backed, lenders are often cautious when it comes to making these larger loans. That's understandable, given the higher level of risk to the lender. To qualify for a jumbo loan, buyers typically need:

  • Higher credit scores (minimum 680)
  • Larger down payments (commonly 15 to 20% or more)
  • Lower debt-to-income (DTI) ratios
  • Significant cash reserves (sometimes six to 12 months, with some scenarios requiring up to 36 months)

With these requirements, lenders may feel as though they're reducing their risk to an acceptable level. At that point, they may be more likely to make the loan, as buyers who meet the criteria above are often considered less likely to default on their financial obligations.

Documentation-Heavy Process

Another critical aspect of jumbo loan guidance to share with your buyers is that they should generally expect more thorough documentation. Essentially, they'll be asked to provide more detailed information on their level of income and assets, as well as the source of their down payment funds and their overall financial situation. Depending on their lender and the specifics of the transaction, this may include:

  • Complete tax returns (often two years)
  • Detailed asset and income verification
  • Proof of liquidity for down payment and reserves

This makes early preparation essential, and agents play a vital role in setting those expectations. If your buyers are unsure about what they need, this may delay the loan process and even put them at risk of losing the home they want to purchase.

Tighter Appraisal Scrutiny

Lenders may order second appraisals or rely on jumbo-specific appraisal standards. Any misalignment between the offer price and appraised value can derail the loan approval process, so it's essential for agents to price homes realistically and guide buyers accordingly.

Customized Loan Products

Unlike conforming loans, which have standardized terms, jumbo loans vary by lender. Interest rates, loan structures (such as ARM vs. fixed), and underwriting policies may differ significantly from one institution to another. As an agent, you can help clients shop for lenders wisely and connect them with a mortgage advisor experienced in jumbo products.

Not All Lenders Offer Jumbo Loans

One of the most important pieces of guidance you can provide your clients is connecting them with the right lender. Jumbo loans aren’t available at every bank, credit union, or online lender, and the differences between lenders may be substantial. When you have good relationships with lenders, you have a better idea of which financial institutions to send clients to.

Some lenders specialize in jumbo financing and may offer more favorable terms or smoother underwriting processes. Others may have tougher thresholds or limited product flexibility. That’s why your professional network matters, and recommending a lender with deep experience in the jumbo space may keep deals on track and clients confident. For example, several lenders only offer loan amounts up to $3 million, whereas PNC provides jumbo loan amounts of $5 million or higher by exception.

If you establish partnerships with reputable jumbo lenders in your area, you can focus on building those relationships before your clients need them. PNC Bank offers specialty and jumbo mortgages and was recognized by NerdWallet as the best mortgage lender for jumbo mortgages in 2024.

Manage Buyer Expectations Early

One of the most underrated skills you can develop as an agent is managing expectations, especially when it comes to jumbo loans. This begins with an honest conversation early in the home search process. For example, some of the expectations you may want to address include:

  • Pre-approval isn’t optional. It's crucial to encourage clients to obtain full pre-approval, not just pre-qualification, before touring homes. This includes underwriting the buyer's financials so there are no surprises later.
  • Timeline expectations also matter. Jumbo loans may take longer to close than conforming loans due to increased underwriting complexity. While 30 to 45 days is still common, you may want to prepare buyers for possible delays.
  • Down payment clarity is another essential issue. Some clients assume they can put down less than 20% and still secure a jumbo loan. In today’s environment, many lenders require a substantial cash investment, particularly for primary residences. While PNC bank does offer Jumbo loan options that allow as little as 15% down, cash reserves still matter when securing a jumbo loan. For example, cash reserve requirements may look like:

1. Loan Amount: $1M = Cash reserves of 6 months
2. Loan Amount: $2M = Cash reserves of 12 months
3. Loan Amount: $3M = Cash reserves of 24 months
4. Loan Amount: $5M = Cash reserves of 24 to 36 months

By setting expectations upfront, you may help your clients avoid roadblocks and reduce frustration later in the process. That not only enables you to have a smoother transaction, but may keep clients happier and lead to referrals for the future.

Prepare for a Longer (and More Involved) Timeline

The underwriting process for jumbo loans may be more time-consuming due to the extensive documentation and additional approvals required. Some lenders may also have in-house committees that review high-value applications, which can add days or even weeks to the closing date. As an agent, you could factor this into your offer strategy through:

  • Avoiding overly aggressive closing timelines
  • Staying in close contact with the lender
  • Advising sellers accordingly if you're representing the buyer

If you're on the listing side, requesting proof of pre-approval and details about the buyer’s lender may help your seller feel more confident about a submitted offer. A reputable jumbo lender with a proven track record may also help ease seller concerns.

Communicate With All Stakeholders

Jumbo loans involve more parties, including portfolio lenders, underwriting specialists, and appraisers. This means proactive communication is essential for everyone to have the best experience.

As an agent, you may want to:

  • Regularly check in with the lender and client
  • Coordinate with the escrow or title agency for any additional requirements
  • Be ready to supply supplemental information as needed (such as updated contracts or addendums)

By staying engaged throughout the process, you may reduce the chances of last-minute surprises and keep all parties aligned. That's one of the best ways for many agents to close transactions and help every party to that transaction feel confident throughout the process.

Leverage Your Experience to Add Value

What sets experienced agents apart in jumbo transactions is not just knowledge, but foresight. If you know how to read a buyer’s financial profile, anticipate lender concerns, and offer solutions before issues arise, you may save time and keep a real estate transaction on the right track more easily. 

There are some great ways to elevate your role, such as:

  • Offering lender referrals for jumbo-specific products
  • Reviewing your clients’ financial preparedness early in the process
  • Helping structure competitive offers that consider jumbo loan nuances
  • Recommending legal or financial professionals for high-net-worth buyers

Jumbo transactions can be high-stakes, and your guidance may make all the difference to buyers who aren't sure what to expect or how to find the right lender for their needs.

Completing the Jumbo Loan Journey

Jumbo loans aren't just about higher purchase prices. They're about higher standards, longer timelines, and more complexity. But for seasoned agents, they also represent a prime opportunity to deliver standout service that may lead to referrals and business growth.

By understanding the details, from conforming thresholds and lender selection to underwriting timelines and buyer readiness, you have the opportunity to position yourself as the go-to expert for high-value deals.

With the right preparation, jumbo loan transactions don’t have to be daunting. They can be smooth, successful, and highly rewarding for both your clients and your career. Learn more about PNC jumbo loans by checking out our jumbo mortgage loans page today.