When Do You Need a Jumbo Loan in Scottsdale? (2026 Limits)

When shopping for a home in high-value areas like Scottsdale or Paradise Valley, you'll often hear the term 'jumbo loan.' So, what is it, and when do you need one?

What is a Jumbo Loan?

A jumbo loan is a mortgage that exceeds the 'conforming loan limits' set by the Federal Housing Finance Agency (FHFA). These limits are the maximum amount Fannie Mae and Freddie Mac will buy from a lender. For **2026 in Maricopa County**, the projected conforming limit is expected to be over **$800,000**. If you need to borrow *more* than that amount, you need a jumbo loan.

How is a Jumbo Loan Different?

Because these are larger, riskier loans for lenders, the qualification guidelines are typically stricter than for a conventional loan:

• Higher Credit Score: You'll usually need a 700-720 credit score or higher.
• Larger Down Payment: While 20% down is common, we have access to programs that allow as little as 10% down with no PMI.
• Cash Reserves: Lenders will want to see that you have significant liquid assets (e.g., 6-12 months of mortgage payments) in reserve after closing.
• Debt-to-Income (DTI) Ratio: Your DTI ratio requirements will be more stringent, often maxing out around 43%.

We work with multiple lenders who specialize in jumbo financing to find the best rates and terms for high-value properties in Arizona.