Can You Get a Jumbo Loan with 5% or 10% Down?

This guide has been reviewed by the lending team at Hurst Lending. Our team has helped homebuyers and homeowners navigate mortgage decisions since 2000, including conventional, jumbo and alternative financing. The guidance reflects questions we regularly hear from Texas buyers comparing conforming and jumbo loans, planning their down payment and deciding how much cash to keep available after closing.

No. A 20% down payment is common, but it is not the only possible jumbo loan structure.

A jumbo loan is generally a mortgage that exceeds the applicable conforming loan limit. If you are unfamiliar with this type of financing, start with our complete guide to jumbo loans.

The Federal Housing Finance Agency establishes conforming loan limits. However, it does not establish one universal minimum down payment for every jumbo loan.

Jumbo programs are offered under different lending guidelines. One program may support a lower down payment for a particular borrower and property, while another may require the buyer to contribute more.

This is why buyers should not assume they need 20% down before discussing their plans with a lender.

It is also important to remember that jumbo status is based on the loan amount, not simply the purchase price. A larger down payment can sometimes bring the mortgage below the applicable conforming limit.

Our guide to jumbo loan limits explains how the purchase price and down payment work together to determine the amount being borrowed.

Higher-value mortgages are often discussed using a traditional 20% down payment example.

There are understandable reasons for this. Putting 20% down reduces the amount being borrowed and gives the buyer more equity from the beginning. It may also reduce the monthly principal and interest payment.

Jumbo lending can involve a closer review of income, assets, credit and reserves. This has led many buyers to believe that providing a large down payment is always required.

However, income and wealth do not always arrive in the same form.

A buyer may have a strong salary but want to retain emergency savings. A business owner may have substantial income while needing to preserve working capital. Another buyer may hold long-term investments they would prefer not to sell to fund a larger down payment.

Low down payment jumbo programs can give qualified borrowers another way to structure the purchase.

There is no single factor that determines the minimum down payment on every jumbo loan.

Lenders generally look at the complete transaction.

Loan Amount

The size of the mortgage can affect which programs are available.

A loan just above the conforming limit may have different options from a much larger jumbo mortgage. The relationship between the purchase price and down payment also determines the final loan amount.

Credit Profile

Lenders review more than one credit score.

Payment history, outstanding balances, credit utilization and recent applications may all form part of the assessment. A stronger overall credit profile may provide access to more financing options.

Income and Existing Debts

The lender must determine whether the borrower’s documented income can support the proposed payments alongside existing obligations.

Salaried income is often straightforward to review. Bonuses, commissions, business income, rental income and investment income may require additional documentation.

Buyers with business income can learn more in our guide to jumbo loans for self-employed borrowers.

Assets and Reserves

The down payment is not the only cash figure that matters.

The lender may also review whether the borrower has sufficient verified funds for closing costs and reserves after the purchase. Putting every available dollar into the down payment can therefore work against the goal of retaining a strong financial cushion.

Property Type

The home itself is part of the assessment.

A primary residence, second home, condominium or unusual property may be treated differently. The purchase price, appraisal and intended occupancy can all affect which loan structures are available.

Each approach creates a different balance between borrowing and retained cash.

This does not mean that 5% down is always better for liquidity or that 20% down is always better for borrowing costs.

The usefulness of each option depends on what the retained cash would otherwise be used for, the cost of the larger loan and the buyer’s comfort with the monthly payment.

Consider a hypothetical buyer purchasing a $1.1 million home.

Before closing costs, the down payments and approximate loan amounts would look like this:

Compared with 20% down, the 10% option would retain approximately $110,000. The 5% option would retain approximately $165,000.

However, that retained cash comes with a larger mortgage.

The buyer would need to compare:

• The estimated monthly payment.
• Interest and loan costs.
• Cash required at closing.
• Funds remaining after closing.
• Planned renovations or furnishing costs.
• Emergency and property reserves.
• Other uses for the retained money.

This example is for illustration only. It does not represent a loan offer or indicate that a buyer will qualify for a particular structure.

A larger down payment can make sense when reducing the loan balance is the buyer’s main priority.

Potential advantages include:

• A smaller mortgage.
• Lower monthly principal and interest payments.
• More equity in the property from the beginning.
• Potential access to different loan options.
• Less interest paid if the loan is retained for the same period.

However, there is another side to the calculation.

Money placed into the property is no longer readily available for other needs. Accessing it later may require selling the home, refinancing or taking out another form of secured borrowing.

A larger down payment may not be the strongest choice if it leaves the buyer with limited emergency savings or insufficient funds for known expenses after closing.

The decision should be made using the complete financial picture rather than the assumption that putting more down is always better.

Liquidity means having money that can be accessed without needing to sell the property or dispose of long-term assets.

Preserving liquidity may be important when a buyer expects to need funds for:

Home Improvements

Even a well-maintained higher-value home may require decorating, furnishing, landscaping or planned upgrades after closing.

Using most available cash for the down payment can make these projects more difficult to fund.

Emergency Savings

Homeownership brings ongoing costs. Repairs, insurance deductibles and unexpected personal expenses do not stop after closing.

Maintaining a cash reserve can provide valuable protection.

Business Working Capital

Business owners may prefer to keep money available for payroll, inventory, tax payments or future growth.

Committing additional capital to a property could reduce flexibility within the business.

Investment and Tax Planning

Selling investments to fund a down payment may create tax consequences or interrupt a longer-term investment plan.

These implications should be discussed with an appropriate tax or financial adviser. A mortgage lender can explain the financing options but should not replace personalized investment or tax advice.

Other Property Costs

The down payment is only one part of the transaction.

Buyers also need to consider closing costs, moving expenses, property taxes, insurance and ongoing maintenance.

The CFPB’s Loan Estimate explainer shows where buyers can review the estimated cash to close, monthly payment and loan costs.

Before deciding on a down payment, estimate:

Liquid funds after closing = available liquid assets − down payment − closing costs − immediate property expenses

Then ask whether the remaining amount would comfortably cover:

• Emergency savings.
• Required loan reserves.
• Moving and furnishing costs.
• Planned home improvements.
• Business or investment commitments.
• Tax obligations.
• Several months of expected housing expenses.

This calculation does not tell you which down payment is best. It helps reveal whether a particular option would leave you financially comfortable after the purchase.

Buyer One: Prioritizing a Smaller Mortgage

This buyer has substantial cash reserves and no major planned expenses after closing.

They intend to remain in the home for many years and place a high value on reducing the monthly mortgage payment.

A traditional larger down payment may suit their priorities.

Buyer Two: Balancing Borrowing and Liquidity

This buyer has a strong income but expects to complete renovations after moving.

They want to reduce the amount being borrowed while keeping enough cash available for the planned work and emergency savings.

A 10% down structure may be worth exploring if they qualify.

Buyer Three: Protecting Business Capital

This buyer owns a growing business.

They can provide a larger down payment but doing so would remove capital that supports day-to-day operations and future growth.

A 5% down jumbo option may allow them to retain more working capital. They would still need to be comfortable with the resulting loan amount and monthly payments.

None of these buyers is automatically making a better decision than the others. Each is matching the financing structure to a different financial objective.

No.

The down payment can influence loan pricing, but it is only one factor. Credit, loan amount, reserves, property type, market conditions and the rate structure can also affect the offer.

A larger down payment may provide access to different pricing. It does not guarantee that the resulting loan will be the best overall option.

Buyers should compare the interest rate, APR, fees, cash to close and monthly payment for each structure.

Our guide to jumbo mortgage rates explains why the lowest advertised rate does not always represent the strongest overall financing package.

There is not one universal low down payment jumbo loan.

Depending on the program, financing may be arranged as one mortgage or through more than one loan working together. Each structure can have different rates, fees, payments and requirements.

Before choosing an option, ask:

• How many loans are involved?
• What is the rate and payment for each loan?
• Are the rates fixed or adjustable?
• What are the total closing costs?
• How much cash will be required at closing?
• What reserves need to remain afterward?
• Are there prepayment penalties?
• How does the structure support my longer-term plans?

The purpose of lower down payment financing should be to provide a workable strategy, not simply to maximize the amount borrowed.

Lower down payment options generally require the lender to understand the borrower’s complete financial position.

Before applying:

• Review your credit reports.
• Gather income and tax documents.
• Organize bank and investment statements.
• Document the source of your down payment.
• Keep records for transferred funds and large deposits.
• Avoid opening new credit accounts before closing.
• Discuss variable or business income early.
• Calculate how much cash you want to retain.
• Review the proposed property with your lender.

Our guide to preparing for a jumbo loan application covers the broader preparation process.

Ask yourself:

• How much cash will I have after closing?
• What monthly payment feels sustainable?
• Will I need money for renovations or furnishings?
• Am I selling investments or withdrawing business capital?
• What would I gain by making a larger down payment?
• What would I give up by committing that cash?
• How long do I expect to own the property?
• Does the financing support my wider financial plans?

Then ask your lender:

• Which down payment structures are available for my situation?
• How would each option change the loan amount and payment?
• What costs apply to each structure?
• How much money must remain in reserve?
• What documents will be required?
• Are there any property restrictions?
• Which details could change before closing?

Hurst Lending helps Texas buyers compare lower down payment and traditional jumbo financing based on their complete financial position.

The conversation is not limited to how little or how much you can put down.

The Hurst team reviews the purchase price, income, assets, existing obligations, preferred monthly payment and amount of cash the buyer wants to retain. This helps identify a structure that supports both the home purchase and the buyer’s wider plans.

Qualified borrowers who want to retain more cash can explore Hurst’s 5% and 10% down jumbo loan options.

Buyers who prefer to commit more cash and reduce the amount being borrowed can explore Hurst’s traditional jumbo loan program.