Jumbo mortgage options in Phoenix-Maricopa County have recently expanded to offer greater flexibility for home buyers who require Jumbo home financing. These adjustments include greater loan amount limits for the low down payment 95% and 90% financing programs.
The current median home value in Phoenix is hovering around $414,000 according to Zillow, this represents a slight increase year over year. Regular conforming mortgages in Arizona are limited to $806,500 loan amounts for 2025, so any amount beyond this would be considered a “Jumbo” mortgage in nature.
A regular conventional loan will be sufficient for most home buyers. But what about buyers in luxury neighborhoods like Paradise Valley, Story, Phoenix Country Club, etc., where home prices can easily exceed $1 or $2mil?
Jumbo loans have historically required larger down payments when compared to their conventional loan cousins. However, newly updated guidelines now allow qualified homebuyers financing with as little as a 5% down payment.
Jumbo loans come in many variations, including single loan and combo “piggyback” loan varieties. Combo piggyback programs are a great way to avoid paying monthly mortgage insurance and also take advantage of lower conforming interest rates on the first mortgage.
What loan option makes the most sense for you will depend on many variables including loan amount, credit profile, property state, etc. Let’s look at the most common 5% and 10% down payment requirements below.
Update: The loan limits listed below apply only to AZ properties including Phoenix, Tucson, Mesa, Chandler, Scottsdale, Glendale, etc. Home buyers who have questions can connect with us by calling the number above, or just submit the Quick Contact Form on this page 7 days a week.
Phoenix 95% Jumbo Loan Requirements:
- The loan amount limit for a 5% down payment is $2,000,000 for Arizona properties.
- 700 credit score required.
- Available for primary homes only. Investment homes require a minimum of 20 percent down payment.
- Single-family homes, town homes, and typical condos are approved. Multi-unit (2-4 unit) properties, acreage, and vacant land are not permitted. Homebuyers interested in building on their own land can read more about Jumbo Loans For New Construction.
- All loan programs require complete income and asset documentation – the same as any conventional government-backed loan. The exception to this is bank statement loans for self-employed buyers
- Buyers can pick from a variety of fixed-rate and common adjustable-rate terms.
- Jumbo Refinance for both rate-term and cash-out transactions is available to current homeowners.
Phoenix 90% Jumbo Loan Requirements:
- The loan amount limit is $3,000,000
- Credit score requirements vary based on the loan amount. Generally, 680 credit is permitted for loans below $1.5mil. 720 -740 credit scores are needed for higher loan amounts.
- All the same requirements as noted above.
- Greater loan amounts exceeding $3.5m are available to qualified borrowers with larger down payments of 15-20%
Jumbo Loan Structure & Avoiding PMI:
Jumbo Loan Structure & Avoiding PMI:Jumbo loans can come with slightly higher interest rates than conforming loans because the balance of a jumbo loan is typically seen as riskier for lenders. Banks and other financial institutions compensate for this higher risk by charging borrowers a slightly higher rate of interest.
The exact difference in interest rate can vary depending on the lender, down payment, and loan type, but it’s usually between 0.25% – 0.75% higher.
A popular way to combat this rate increase is by splitting up the financing into two separate loans. Often called a combo or “piggyback loan“, this method allows the borrower to keep their primary first mortgage at or under the conforming loan limit, thus taking advantage of the lower interest rate. The rest of the balance is made up of a smaller second mortgage to make up the difference. This is even more popular for buyers financing more than 80% loan to value.
More importantly, by keeping the primary first loan below 80% LTV, the borrower can circumvent monthly private mortgage insurance charges. PMI can be especially costly for higher loan amounts like this.
Jumbo Loan Payment Reserves:
Jumbo Loan Payment Reserves: Buyers should also note each program will have mortgage reserve requirements. Mortgage reserves are assets you have remaining after down payment and closing costs obligations are met. Reserves are defined as assets like bank savings, retirement 401K accounts, stock, cash value of life insurance, or bonds.
Since high-balance loans carry greater risks than conventional loans, lenders often want to make sure homeowners are able to repay the loan even if faced with unexpected expenses.
Most Jumbo loan programs will require at least 3 to 6 months of reserves. The payment reserve requirements will generally increase with higher loan amounts, as some high loan amounts ($3mil +) may require 9+ months of reserves depending on the borrower’s profile.
Example: A buyer’s mortgage payment with taxes and insurance equals $6,000 per month. If the program requires (3) months of payment reserves, the borrower should be able to document $18,000 in reserves in a liquid or non-liquid account.
Buyers can read all the Jumbo Purchase and Refinance requirements in the links above. Have questions or need a quick rate quote? Please reach out to us 7 days a week by calling or just submit the Quick Contact Form here.
