The required credit score for a Jumbo loan may be higher than what’s needed for other kinds of mortgages and can vary depending on the size of the loan in question. The base credit score for a jumbo loan is 680 — this would generally suffice for a $1 million loan. However, incrementally larger loans require higher credit scores.

For example, for a $1.5 million loan, borrowers should have a credit score of around 700. Loans up to $2 million, however, require a credit score of 720 or above.

Yet another factor that lenders use to determine a borrower’s ability to manage a jumbo loan is their debt-to-income ratio (DTI). As its name suggests, a debt-to-income ratio indicates a borrower’s debt and expenses in relation to their gross monthly income. When it comes to jumbo loans — and even conventional loans — lower DTIs are better.

A low DTI shows that you can responsibly manage additional expenses, while a higher DTI indicates that you are spread thin financially. Lenders agree that jumbo loan borrowers should maintain a DTI under 43% to qualify. To reiterate, the lower the DTI, the better.

In addition to a high credit score and a low DTI, lenders also like to know that jumbo loan borrowers have a fair amount of cash. A considerable amount of savings shows the lender that the borrower can make their payments, even if cash flow stops for some reason.

That being said, some lenders seek borrowers who have up to one year of house payments on hand.

Borrowers should also expect to pay larger down payments for jumbo loans than for conventional loans. While conventional buyers can get away with smaller down payments — generally from 3% to 20% — jumbo loan down payments may be higher. Lenders may expect borrowers to pay up to 20% of the home’s sale price in a down payment. However, some lenders may be more flexible, accepting as little as 10%.

In order to qualify for a jumbo loan, borrowers should be prepared to share their full financial history with lenders. This may include more documentation than is required for a conventional loan. Prepare to give the lender copies of your full tax returns, 1099s and W-2s.

You should also include your bank statements and documentation showing any investment accounts that you may have. This paperwork will help lenders see that you are reliable and can be trusted to make regular payments.

A borrower’s jumbo loan limit depends on their specific situation — including their credit score, DTI, cash reserves and overall financial history. Each of these elements plays an essential role in helping lenders determine how much of a loan each borrower can manage. As a borrower’s cash reserves and credit score increase, so will their jumbo loan threshold.