Suppose you buy a $900,000 home with 20% down. Your loan is $720,000, which sits under the 2026 limit. Now suppose you buy a $1,100,000 home with 20% down. Your loan is $880,000, which does not. The jumbo loan limit is the maximum loan amount Fannie Mae and Freddie Mac will buy, and in 2026 that baseline conforming limit is $832,750 for most of Virginia, including the Richmond metro. Any loan above it is a jumbo loan.
The dividing line is the loan amount, not the price on the listing. That distinction decides which guidelines, documentation, and cash requirements apply to you. This guide by Duane Buziak, NMLS #1110647, covers how the limit is set, how jumbo underwriting differs, a worked example with real payment math, and a program-vs-program comparison.
- How the 2026 Jumbo Loan Limit Is Set for Richmond
- Jumbo Loan Requirements Compared With Conforming Loans
- Worked Dollar Example: Crossing the Jumbo Line in Richmond
- Jumbo vs. Conventional vs. VA: Comparison Table
- Choosing Between Jumbo Financing and Staying Under the Limit
- The $832,750 Line and Your Next Step
How the 2026 Jumbo Loan Limit Is Set for Richmond
The Federal Housing Finance Agency (FHFA) sets the conforming loan limit every year under federal law. The number moves with national home price changes, and FHFA publishes it in the fall for the following year. Loans at or below the limit are “conforming” because Fannie Mae and Freddie Mac can purchase them. Loans above it are “jumbo” or “non-conforming.” You can read the announcement and look up county values on the FHFA conforming loan limit page, and the Consumer Financial Protection Bureau has a plain-language jumbo explainer.
For 2026, the baseline limit for a one-unit home is $832,750. Richmond is not designated a high-cost area, so the Richmond metro uses that baseline and no higher ceiling applies. High-cost counties elsewhere in the country, and some in Northern Virginia, do have higher ceilings, which is why one national number never tells the whole story. Check your county on FHFA’s lookup before you commit to a price range.
Limits rise with the number of units. As published by FHFA for 2026, the baseline figures are:
- One unit: $832,750
- Two units: $1,066,250
- Three units: $1,288,800
- Four units: $1,601,750
Multi-unit financing carries its own occupancy and reserve rules, so confirm these figures on FHFA before you plan around them.
The limit applies to the loan amount, not the purchase price. A $1,000,000 home with $200,000 down is an $800,000 loan, which is still conforming. Many buyers assume a seven-figure home automatically means a jumbo loan, and it does not.
Jumbo Loan Requirements Compared With Conforming Loans
Jumbo loans are not backed by Fannie Mae or Freddie Mac, so there is no single national rulebook. Each investor sets its own guidelines, and those guidelines are usually tighter than conforming ones. What follows are typical overlays. They vary by lender and change with the market, so none of them is a fixed rule.
- Credit score: Minimums of 700 or higher are common, and the best pricing often goes to higher scores.
- Debt-to-income ratio (DTI): DTI is your monthly debt payments divided by gross monthly income. Jumbo guidelines often cap it lower than conforming programs do.
- Down payment: Commonly 10% to 20%, depending on the loan size and the investor.
- Cash reserves: Reserves are liquid funds left after closing, measured in months of housing payments. Jumbo investors often ask for several months, sometimes more as the loan grows.
Mortgage insurance on jumbo loans
On conforming loans, private mortgage insurance (PMI) lets you buy with less than 20% down. On jumbo loans, PMI is usually not available on the same terms, so many jumbo borrowers put 20% down or use alternative structures such as a piggyback second loan. Availability and cost depend on the lender, so confirm the structure before you write an offer.
Appraisal and documentation
Expect closer scrutiny. Larger loans can trigger a second appraisal, and lenders often want more asset documentation, such as additional bank statements, plus a thorough review of self-employed income. No one can promise a timeline, because it depends on the file and the investor.
Because each jumbo investor writes its own rules, comparison matters more here than in any other program. Duane Buziak can compare options across hundreds of wholesale lenders, so you see how different guidelines and pricing apply to your specific file instead of accepting one lender’s overlays by default.
Worked Dollar Example: Crossing the Jumbo Line in Richmond
Start with the local market. Current Richmond city-wide median values are published on Virginia REALTORS and in Zillow’s home value data, and you should check the latest figure with its date. The citywide median sits far below the $832,750 line, so most Richmond purchases are conforming. The scenarios below are illustrations for buyers at higher price points, not a statement about the typical buyer.
Both scenarios assume 20% down and a 30-year fixed loan at an illustrative 6.25%. That rate is an assumption, not a quote. See Freddie Mac’s Primary Mortgage Market Survey for the current range. Jumbo pricing can differ from conforming pricing, and I use one rate here only to keep the comparison clean. Payments are principal and interest only, before taxes, insurance, and any HOA dues.
| Scenario | Purchase Price | Down Payment | Loan Amount | Monthly P&I at 6.25% | Loan Type |
|---|---|---|---|---|---|
| A | $850,000 | $170,000 | $680,000 | $4,187 | Conforming |
| B | $1,100,000 | $220,000 | $880,000 | $5,418 | Jumbo |
| B, larger down payment | $1,100,000 | $267,250 | $832,750 | $5,127 | Conforming |
Scenario B’s $880,000 loan exceeds the $832,750 limit by $47,250, so it is a jumbo loan. To bring it back under the line, you would raise the down payment from $220,000 to $267,250. That costs $47,250 in additional cash at closing.
The payoff is a payment of about $5,127 instead of $5,418, a saving of roughly $291 a month. At that pace, the extra $47,250 takes about 13.5 years to earn back in payment savings alone. This ignores any rate difference between jumbo and conforming pricing and any change in mortgage insurance. The decision is a cash-versus-flexibility tradeoff, and the right answer depends on your reserves and what else you could do with that $47,250.
Jumbo vs. Conventional vs. VA: Comparison Table
The VA column does not describe a jumbo product, and VA loans are not jumbo loans. It is included because veterans often wonder how the limit applies to them.
| Feature | Jumbo Loan | Conventional (Conforming) Loan | VA Loan |
|---|---|---|---|
| Loan amount ceiling | None set by Fannie Mae or Freddie Mac; each investor sets its own maximum | $832,750 for one unit in the Richmond metro (2026) | No VA maximum for eligible borrowers with full entitlement; lender limits still apply |
| Typical down payment | Often 10% to 20%, varies by lender | As low as 3% on some programs, 5% to 20% is more common | Often 0% with full entitlement; may differ above the county limit if entitlement is reduced |
| Mortgage insurance or fee | PMI usually limited; many borrowers put 20% down | PMI required under 20% down | No monthly mortgage insurance; a one-time VA funding fee applies unless exempt |
| Credit expectations | Often 700 or higher | Often 620 or higher; pricing improves with higher scores | VA sets no minimum score; lenders set their own |
| Who it suits | Buyers with loans above $832,750 and strong reserves | Buyers with loans at or below $832,750 | Eligible veterans, service members, and surviving spouses |
On the VA side, the amount of guaranty and your remaining entitlement affect whether a down payment is needed on a larger loan. The VA loan limits page explains how county limits interact with entitlement, and lenders may apply their own requirements on top. Confirm your situation before you plan around a zero-down purchase above the county limit.
Duane Buziak invites you to Dare to Compare: put a quote from Richmond Home Loans by Duane Buziak next to any other you receive, and compare rate, fees, and structure line by line. With NoTouch Credit Pull, you can check your options with a soft pull first, so shopping does not cost you points on your credit report.
Choosing Between Jumbo Financing and Staying Under the Limit
Work through the decision in order:
- Calculate your intended loan amount: purchase price minus down payment.
- Compare that number with $832,750 for a one-unit home.
- If you are over, weigh three paths: a larger down payment, a jumbo loan, or a different price range.
- Get quotes for the paths that are realistic, and compare total cost, not just the payment.
Two common mistakes
The first is treating the limit as a price cap. It is not. A buyer with a large down payment can purchase well above $832,750 and still have a conforming loan. The second is assuming jumbo rates are always higher than conforming rates. They can be close, and in some markets they have been lower, depending on investor demand. Compare real quotes instead of relying on assumptions.
The limit changes every year
FHFA resets the figure annually, so a loan is tested against the limit in effect when it is made. The $832,750 number applies to 2026 only. If you are planning a purchase or refinance in a later year, confirm that year’s published limit instead of assuming this one carries over.
If you are close to the line, start with pre-approval. NoTouch Credit Pull lets you see where you stand without a hard inquiry, so you can test different down payments and price ranges before any credit report is pulled for underwriting.
The $832,750 Line and Your Next Step
In Richmond, any loan above $832,750 in 2026 is a jumbo loan, and anything at or below it is conforming. Measure your loan amount, not the price tag, against that number. Then decide whether a bigger down payment, a jumbo loan, or a different price range fits your cash and your goals.
Whether you’re a veteran ready to use your hard-earned benefits or a homebuyer exploring your financing options, your path to homeownership starts with expert guidance you can trust. Connect with Duane today for a personalized consultation and discover the mortgage solution tailored to your unique goals in the Stafford County and Richmond area. You can also call Richmond Home Loans by Duane Buziak at (804) 212-8663 for a personalized comparison.