In today’s real estate market, especially in high-cost cities like Los Angeles, San Francisco, or DC, it’s not uncommon for home prices to exceed conventional loan limits. When that happens, borrowers need to turn to a jumbo mortgage—a type of financing designed for loan amounts above conforming limits. The good news? You don’t necessarily need a 20% down payment to qualify for a jumbo loan.
In many cases, qualified borrowers can secure a jumbo financing with just 10% down, even for loan amounts between $2.5 million – $3m, depending on the property location. And for homes in the $1.5m to $2m range, 95% jumbo financing is possible.
Let’s explore how these loans work, who they’re for, and what you need to qualify.
📊 U.S. Map Highlighting High-Cost Areas
High-cost housing markets where 10% down jumbo loans are commonly available.
San Francisco, CA
Los Angeles, CA
Washington, DC
Denver, CO
Seattle, WA
Miami, FL
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). In 2025, that limit is:
$806,500 (1-unit) for most counties nationwide
Up to $1,209,750 in certain high-cost areas
If your loan amount is above these thresholds, you’ll need a jumbo loan.
Jumbo loans are funded by private lenders and are not guaranteed by Fannie Mae or Freddie Mac, so they tend to have stricter requirements—but also more flexibility for the right borrower.
Can You Really Get a Jumbo Loan with 10% Down?
Yes, absolutely. In competitive housing markets and high-income areas, lenders recognize that qualified buyers may not want—or be able—to put down 20% on a muti-million dollar home. That’s why some lenders and banks now offer 90% loan-to-value (LTV) jumbo mortgages for loan amounts in that range.
In fact, some borrowers can even get 95% LTV jumbo loans (only 5% down) for homes priced between $1.5 million and $2 million, depending on their financial profile and the lender’s risk appetite.
💡Jumbo Loan Options Table
| Loan Amount | Minimum Down Payment | Loan-to-Value (LTV) |
|---|---|---|
| $1.5M – $2M | 5% | 95% |
| $2.5M – $3M | 10% | 90% |
| $3M+ | Typically 15-20% | 80-85% |
Buyers That Might Need a Low Down Payment Jumbo Mortgage?
Jumbo loans with low down payments are designed for financially strong buyers who need flexibility. You might benefit from a 10% down jumbo loan if you:
Those purchasing in a high-cost city where home prices are consistently above $2 million
Have significant income but prefer to keep cash liquid for other investments or business
Are self-employed or work in tech, medicine, law, or finance and expect income growth
Want to preserve capital for renovations, other investments, or retirement savings
Have a strong credit profile but limited savings due to a new career or other expenses
🏠 Real-World Example:
Beth and John are relocating to San Francisco for work. They found a $2.8 million home in a great neighborhood. Rather than depleting their savings with a traditional 20% down payment ($560,000), they opt for a 10% down jumbo mortgage, putting down $280,000 and preserving capital for other investments.
What Are the Requirements for a 10% Down Jumbo Loan?
While 10% down is possible, lenders will want to ensure you’re financially strong. Expect stricter qualifying guidelines than conventional loans.
✅ Typical Qualification Requirements:
Credit Score:
Minimum of 660–720 depending on the loan amount
Higher scores may be required for 95% financing
Income & Employment:
Stable and verifiable income
At least 2 years of consistent employment (recent college grads just starting new professional career are often excempt)
Debt-to-income (DTI) ratio under 48%, lower is better
Cash Reserves:
Must show post-closing reserves of 3–12 months of mortgage payments
Can include non-liquid retirement or investment accounts
Property Type:
Primary residences preferred (required for 95% LTV)
Vacation or Second homes
Investment properties eligible but may require more down
Appraisal:
Home must appraise at or above purchase price
Some lenders require two appraisals for loan amounts over $2.5M
No PMI Options:
Many jumbo lenders do not require private mortgage insurance (PMI), even for low down payments programs
✅ Bullet Summary of Requirements
10% down payment (or 5% for $1.5M–$2M loans)
660–720 credit score
Verifiable income and strong employment history
Maximum 48% debt-to-income ratio
3-12 months of cash reserves
Satisfactory appraisal(s)
Primary residence preferred
No PMI in most cases
🧮 Example Mortgage Breakdown
Purchase Price: $2.75 million
Down Payment (10%): $275,000 + closing costs
Loan Amount: $2.475 million
Estimated Monthly Payment: $15,000 (Principal + Interest, taxes, homeowners insurance; varies by rate/location)
Pros and Cons of Low Down Payment Jumbo Loans
Before committing, consider the benefits and trade-offs of using a jumbo loan with a low down payment.
✅ Pros:
Preserve liquidity for other investments or emergencies
Enter the market sooner without waiting to save 20%
Avoid PMI in most cases
Leverage rising home values in hot markets
❌ Cons:
Stricter underwriting standards
Higher monthly payments
Potential for slightly higher interest rates
Requires strong financial documentation
Tips for Getting Your Jumbo Loan Approved
Want to boost your chances of approval for a low down payment jumbo loan? Here are a few helpful strategies:
Improve Your Credit Score: Pay down credit card balances, avoid new debt, and check for errors on your credit report. Even a slight 20 point increase in your credit score can make a big difference in your rate and terms. Many lenders are even happy to assist you with this though a rapid credit rescore process.
Lower Your DTI: Reduce debt before applying to improve your debt-to-income ratio.
Boost Cash Reserves: The more you can show in savings or investments, the better.
Work with a Jumbo Loan Specialist: Some lenders specialize in high-balance loans and may offer better terms or flexibility.
Final Thoughts
You don’t need millions in the bank to buy a luxury home. With the right mortgage company and a strong financial profile, you can secure a jumbo mortgage with just 10% down—and even as little as 5% in some cases.
These options are especially valuable in high-cost markets like Florida and California, where jumbo loans are often the only way to finance a competitive home purchase.
Whether you’re an established professional, business owner, or a family making a big move, today’s jumbo loan options give you the flexibility to buy the home you want—without draining your savings.
📌 Need Help Finding the Right Jumbo Loan?
Please connect with us today to explore all the low down payment financing options, understand requirements, and lock in the best rate. Just call or submit the Quick Call Form 7 days a week.