Is a Jumbo Loan Right for You?
A jumbo loan is a mortgage that exceeds the FHFA conforming loan limit, which will be $819,000 in 2026 (up from $806,500 in 2025). In Kansas City, these loans are ideal for homebuyers purchasing luxury homes or properties in premium neighborhoods above this threshold. If you’re considering a home purchase above the standard loan limits, a jumbo loan might be the right choice for you.
Benefits of a Jumbo Loan
The primary advantage is the ability to finance luxury homes or properties in expensive markets without needing multiple loans, simplifying the borrowing process. Jumbo loans also provide flexibility for buyers who want to invest in larger or upscale homes that exceed standard loan caps, often with competitive interest rates for well-qualified borrowers with strong credit and financial profiles. However, these benefits come with stricter qualification criteria, such as higher credit scores, larger down payments (often 20% or more), and robust financial documentation, making them best suited for financially stable borrowers.
Jumbo Loan Eligibility Requirements
Eligibility requirements for jumbo loans are stricter than those for conventional loans due to their larger size and increased risk for lenders. Borrowers generally need a strong credit score, often 680 or higher, and a debt-to-income (DTI) ratio below 45%. A substantial down payment, usually 20% or more, is required, along with significant cash reserves, often equivalent to 6-12 months of mortgage payments. Lenders also require thorough documentation of income and assets, and the property must appraise for at least the purchase price. Because jumbo loans are not backed by government-sponsored entities like Fannie Mae or Freddie Mac, lenders may impose additional criteria, such as a low loan-to-value (LTV) ratio, to mitigate risk.
Run monthly payments with our Jumbo Mortgage Calculator
Use our jumbo mortgage calculator to estimate your monthly payments based on purchase price, down payment, interest rate, and term. This tool helps you plan your budget and understand the costs of purchasing a luxury home.
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Today’s Jumbo Loan Rates
Current mortgage rates are based on a purchase or refinance with a middle FICO credit score of 780 or higher, a 70% loan-to-value ratio, and owner-occupied property.
TERM Example Payment*
30-Year Jumbo 360 payments of $6,157 at 6.250% (for $1,000,000 loan)
15-Year Jumbo
180 payments of $8,171 at 5.500% (for $1,000,000 loan)
7 Yr ARM Initial: $6,157 (adjusts after 7 years)
5 Yr ARM Initial: $6,076 (adjusts after 5 years)
Check out our current mortgage rates now.
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Frequently Asked Questions About Jumbo Loans
The minimum down payment for Jumbo loans is 20%.
In 2025, jumbo loans in Kansas City start above the FHFA conforming limit of $806,500 for single-family homes.
In 2026, this threshold will increase to $819,000, meaning fewer luxury homes will require jumbo financing. Kansas City follows the national baseline limit (not high-cost area rules).
Yes, but expect stricter requirements, such as higher credit scores and reserves (e.g., 20%+ down, strong reserves for Kansas City properties in areas like Overland Park). Learn more about DSCR Loans.
Jumbo rates may be slightly higher due to loan size, but strong credit can secure competitive rates. See current mortgage rates or receive a personalized quote.
No, jumbo mortgages are not assumable.
2025 Jumbo Loan Market Trends in Kansas City
As of November 2025, the FHFA has announced the 2026 conforming loan limit will rise to $819,000 — a $12,500 increase from the 2025 limit of $806,500. This marks a 1.55% year-over-year growth, the smallest annual jump in three years, reflecting cooling national home price appreciation. Jumbo loans remain essential for Kansas City’s luxury market, especially in high-demand suburbs like Overland Park, Leawood, Loch Lloyd, and Hallbrook, where median luxury sales range from $1.15M–$1.35M (Heartland MLS, Q3 2025).
| Year | Conforming Limit | YoY Change |
|---|---|---|
| 2024 | $766,550 | — |
| 2025 | $806,500 | +5.2% |
| 2026 | $819,000 | +1.55% |
Rate Environment (Nov 2025):
- 30-year jumbo fixed: 6.125%–6.45% (down 58 bps YTD)
- 7/1 ARM: 5.99%–6.25% start rate (popular for move-up buyers anticipating 2026 Fed cuts)
Home-price & inventory trends: Luxury appreciation has cooled to 2.8%–4.2% YoY (vs. 6%+ in 2023–2024), with active listings up 18% in the $1M+ segment—still below pre-2020 norms. New construction in Hallbrook and Mission Hills is absorbing jumbo demand, but build-cycle delays keep supply tight.
| Loan Type | Limit (2025) | Limit (2026) | Down Payment | Rates (Avg. Nov 2025) |
|---|---|---|---|---|
| Conventional | $806,500 | $819,000 | 3–5% | 5.99% |
| Jumbo | $806,501+ | $819,001+ | 20%+ | 6.125%–6.45% |