FHA Jumbo Loans: How They Work, What They Cost, and Who They're Actually For

Most people put FHA jumbo loans into a category that doesn't exist in their heads. They think FHA means small loans for buyers scraping together a minimum down payment. And they think jumbo means big loans for buyers with excellent credit and deep pockets.

FHA jumbo sits right in the middle, and it fills a gap that a lot of buyers in higher-cost markets don't realize is there. If you need a loan above the standard FHA floor but you don't have the credit score or down payment for a conventional jumbo, this might be exactly what you're looking for.

Or it might not. The costs are real, the lender requirements are tighter than standard FHA, and in some situations conventional is still the better path. This guide will help you sort through all of that.

What Is an FHA Jumbo Loan?

An FHA jumbo loan is an FHA-insured mortgage that exceeds the standard FHA loan limit (the national floor) but stays within the higher limit set for high-cost counties.

For 2026, here's how the numbers break down nationally:

• Standard FHA floor: $541,287 (applies in most U.S. counties)
• FHA ceiling for high-cost areas: $1,249,125 (applies in the most expensive markets)

Any FHA loan above the $541,287 floor that stays within your county's specific limit is what lenders typically call an FHA jumbo loan or FHA high-balance loan. The two terms mean the same thing. Different lenders just use different names, which creates confusion when you're trying to research this online.

The loan works just like a regular FHA loan in most ways. It's insured by the Federal Housing Administration, requires mortgage insurance, and follows FHA guidelines for credit, income, and property standards. The main differences are the loan amount and the fact that many lenders apply stricter qualification standards at these higher balances.

Where FHA Jumbo Loans Apply in Colorado

FHA jumbo loans only exist in counties where the FHA limit exceeds the national floor. In Colorado, the 2026 limits increased across the board, and more counties now qualify for FHA jumbo than in previous years.

Colorado counties with FHA limits above the $541,287 floor (2026):

A few things stand out in the 2026 numbers. Eagle, Garfield, and Pitkin counties now reach $1,249,125 — that's FHA financing on homes over a million dollars. Mountain resort counties like Summit, Lake, Routt, and Moffat are all above $1 million as well. And counties like Chaffee, Grand, Gunnison, La Plata, and Ouray that were at the standard floor in previous years now have their own elevated limits.

Even Weld and El Paso counties, which many people think of as more affordable markets, now sit slightly above the national floor — meaning FHA jumbo technically exists there too, though the range is narrow.

If you're buying in a county at the standard floor ($541,287) — places like Pueblo, Mesa, Morgan, or most eastern plains counties — FHA jumbo isn't available. The loan amount simply can't go higher than the county limit.

FHA Jumbo Loan Requirements

This is where things get tricky. FHA publishes one set of guidelines. Lenders apply their own rules on top. And for FHA jumbo loans, lenders tend to be more conservative than they are for standard FHA.

Here's what to expect:

Credit Score

FHA guidelines: Same as standard FHA — 580 minimum for 3.5% down, 500 for 10% down.

What lenders actually require: Most lenders want a minimum of 660-680 for FHA jumbo loans. Some will go as low as 640 with strong compensating factors (low debt, significant reserves). Very few will touch 620 at these loan amounts, and 580 is effectively off the table at most shops.

The reasoning is straightforward: the lender is taking on more risk with a larger loan, so they want more confidence that you'll repay it.

Down Payment

FHA guidelines: 3.5% minimum with a 580+ credit score.

What lenders actually require: Many lenders stick with 3.5% for FHA jumbo, but some require 5% or even 10% at higher loan amounts. This varies significantly from lender to lender.

On a $850,000 home in the Denver metro, here's what different down payments look like:

• 3.5% down: $29,750
• 5% down: $42,500
• 10% down: $85,000

The difference between 3.5% and 10% is over $55,000 in cash. That's not a small gap, and it's one reason finding a lender who actually offers FHA jumbo at 3.5% down matters.

Debt-to-Income Ratio

FHA guidelines: Up to 43%, sometimes up to 50% with compensating factors.

What lenders actually require: Many cap DTI at 43% or 45% for FHA jumbo, with less flexibility than standard FHA. If your DTI is over 45%, you'll have a harder time finding a lender willing to do an FHA jumbo loan.

Cash Reserves

This is one of the biggest differences between standard FHA and FHA jumbo. Standard FHA doesn't have a formal reserve requirement for most borrowers.

For FHA jumbo, most lenders want to see 2-3 months of mortgage payments sitting in your accounts after closing. On a $800,000 loan, your total monthly housing payment (principal, interest, taxes, insurance, MIP) might be around $6,000-$6,500. So you'd need $12,000-$19,500 in reserves on top of your down payment and closing costs.

That's a significant amount of cash. Between the down payment, closing costs, and reserves, you could need $65,000-$90,000+ in liquid assets for an FHA jumbo loan, even at 3.5% down.

Property Requirements

Same as standard FHA. The home must be your primary residence, and it must meet FHA Minimum Property Requirements. The appraisal will check both value and condition.

The Real Cost of FHA Jumbo Mortgage Insurance

Mortgage insurance on a standard FHA loan is already a meaningful expense. On an FHA jumbo loan, the numbers get significantly larger because you're paying the same percentages on a bigger loan amount.

Read that last column carefully. On the maximum FHA jumbo loan in Denver metro, you could pay nearly $137,000 in mortgage insurance alone over the life of the loan if you never refinance. And in Eagle, Garfield, or Pitkin counties where the limit reaches $1,249,125, the mortgage insurance costs would be even higher.

This doesn't mean FHA jumbo is a bad choice. It means you need to go in with your eyes open about what it costs, and have a plan for when (or if) you'll refinance out of FHA into a conventional loan down the road.

FHA Jumbo vs. Conventional: When Each One Wins

This is the comparison that matters most. If you can qualify for conventional financing at the same loan amount, it will usually cost less over time. But "if you can qualify" is doing a lot of work in that sentence.

FHA Jumbo Wins When:

• Your credit score is between 660-700. Conventional jumbo lenders often want 700-720+ and give their best rates at 740+. If you're at 670, FHA jumbo may be your only realistic option at these loan amounts.
• You have limited cash for a down payment. Getting into an $829,000 home with roughly $29,000 down is only possible through FHA. Conventional at that price point would require $83,000+ (10% down).
• Your DTI is higher. FHA is generally more flexible on debt-to-income than conventional jumbo programs, which often cap at 43% with little wiggle room.

Conventional Wins When:

• Your credit score is 720+. You'll get competitive rates, and PMI will be lower than FHA's MIP. Plus conventional PMI drops off at 80% LTV.
• You have 10-20% down. The larger down payment eliminates or reduces mortgage insurance and gives you more loan options.
• You plan to stay long-term. FHA's lifetime MIP costs significantly more than conventional PMI that cancels at 80% equity. Over 15-30 years, the difference can be $50,000-$100,000+.
• You want to avoid the FHA appraisal. FHA's property condition requirements can complicate purchases of older homes or properties that need work.

Not Every Lender Offers FHA Jumbo Loans

This catches a lot of buyers off guard. You start the conversation with a lender, mention you need a $750,000 FHA loan, and they tell you it can't be done. So you assume FHA doesn't go that high, or that you don't qualify.

The real issue is often simpler: that lender doesn't offer FHA jumbo. Or they offer it but only above a 680 credit score. Or only with 5% down. Each lender sets their own rules on top of FHA's guidelines, and at higher loan amounts, those rules vary widely.

If one lender tells you no, it's worth asking a second or third. Not every "no" means you don't qualify. Sometimes it means you're talking to the wrong lender for this particular loan product.

The Refinance Question

A lot of FHA jumbo borrowers go in with a plan: use FHA now to get into the home, then refinance to conventional once their credit improves or they've built enough equity.

This is a reasonable strategy, but it depends on a few things going right:

• Your credit score needs to improve. If you're at 670 now and need 720+ for a good conventional rate, that takes time and discipline.
• Home values need to hold or increase. If values dip, you might not have the 20% equity needed to refinance without PMI.
• Rates need to be favorable. If rates rise between now and when you refinance, the math might not work in your favor.
• You'll pay closing costs again. A refinance typically costs $5,000-$12,000+ on a jumbo loan. Factor that into the savings calculation.

None of this means the strategy is bad. It just means it's a plan, not a guarantee. Build it into your thinking, but don't bank on it as a certainty.

Real Scenarios: When FHA Jumbo Makes Sense and When It Doesn't

Frequently Asked Questions

What is an FHA jumbo loan?

An FHA jumbo loan (also called an FHA high-balance loan) is an FHA-insured mortgage that exceeds the standard national FHA loan limit ($541,287 in 2026) but stays within the higher limit set for high-cost counties. In Colorado, many counties have FHA limits well above the floor — ranging from $541,650 in El Paso County all the way up to $1,249,125 in Eagle, Garfield, and Pitkin counties.

What are the requirements for an FHA jumbo loan?

FHA guidelines are the same as standard FHA (580 credit score, 3.5% down), but most lenders apply stricter rules for jumbo amounts. Expect to need a 660-680+ credit score, 2-3 months of cash reserves after closing, and a DTI at or below 43-45%. Some lenders also require a higher down payment at jumbo amounts.

What is the maximum FHA jumbo loan amount in Colorado?

It depends on the county. For 2026, the highest FHA limit in Colorado is $1,249,125 in Eagle, Garfield, and Pitkin counties. Denver metro counties top out at $862,500. Boulder County is $879,750. Mountain resort counties like Summit, Lake, Routt, and Moffat range from $1,089,050 to $1,092,500. Counties at the standard floor ($541,287) don't have FHA jumbo available.

Do FHA jumbo loans require mortgage insurance?

Yes. Both upfront MIP (1.75% of the loan amount, usually rolled into the loan) and monthly MIP (0.55% annually for most borrowers). If you put down less than 10%, MIP lasts the entire life of the loan. On an $800,000 FHA jumbo loan, that's about $14,000 upfront and $367/month ongoing.

What credit score do I need for an FHA jumbo loan?

While FHA allows scores as low as 580, most lenders require 660-680 or higher for FHA jumbo loans. A few will work with 640 if you have other strengths in your application (low DTI, large reserves). Shopping multiple lenders is especially important at these loan amounts, because credit score minimums vary more than they do for standard FHA.

Is an FHA jumbo loan better than a conventional jumbo loan?

It depends on your credit score, down payment, and how long you plan to keep the loan. FHA jumbo is typically better for buyers with credit scores in the 660-700 range who have limited cash for a down payment. Conventional jumbo is usually better for buyers with 720+ credit and 10-20% down, because PMI drops off and you avoid FHA's lifetime mortgage insurance.