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Financing & Affordability

How do jumbo loans work when buying a high-end home in Colorado Springs?

By Weldon Hobbs · Team Hobbs Realty
Published · Last reviewed

A jumbo loan is a mortgage larger than the conforming loan limit, which in El Paso County is $832,750 for a one-unit home in 2026. Because Fannie Mae and Freddie Mac won't buy these loans, each lender sets its own rules. That usually means a higher credit score, a larger down payment, more cash in reserve, and closer review of your income, assets, and appraisal. I recommend talking with a lender who regularly makes jumbo loans before you start touring, so you know your price range and how long approval will take.

What makes a loan "jumbo"

The limit applies to the loan amount, not the price of the home. Each year, the Federal Housing Finance Agency sets the largest loan Fannie Mae and Freddie Mac can buy. El Paso County uses the standard national limit, which for 2026 is $832,750 for a one-unit home. Any loan above that is a jumbo loan.

A hypothetical example: on a $1,000,000 home, a buyer who puts 20% down borrows $800,000, which is under the limit. The same buyer putting 10% down borrows $900,000, which is a jumbo loan. Same house, different loan.

The limit usually changes each year. FHFA typically announces the next year's limit in late November.

What lenders typically look for

Jumbo lenders set their own requirements, so they vary. Common ranges:

  • Credit score: often 700 or higher, with better terms at higher scores.
  • Down payment: often 10% to 20%, and sometimes more for larger loans or second homes.
  • Cash reserves: often six to 12 months of mortgage payments in savings after closing.
  • Debt-to-income ratio: usually lower than a conforming loan allows.
  • Documentation: full documentation of income and assets, reviewed closely. If you're self-employed or living on investment or retirement income, expect more paperwork.
  • Appraisal: some lenders require a second appraisal at higher loan amounts.

Jumbo rates have historically run higher than conforming rates, though in recent years they've sometimes been similar or even lower. Fixed-rate and adjustable-rate jumbo loans are both common. Compare full loan estimates from more than one lender rather than advertised rates.

Ways buyers stay under the limit

A jumbo loan isn't the only option on a higher-priced home.

  • A larger down payment can bring the loan under $832,750.
  • A first mortgage at or under the limit plus a second loan (sometimes called a piggyback loan) can cover the rest. Your lender can compare the total cost with a single jumbo loan.
  • VA buyers with full entitlement have no VA loan limit, although lenders still set their own maximums and the home must appraise. In a military community like Colorado Springs, that's worth knowing. (See whether there's a VA loan limit in El Paso County.)

Appraisals on high-end homes

Custom features, acreage, and views don't always appraise at what they cost, and at higher prices there are fewer comparable sales for an appraiser to use. With a jumbo loan, the lender lends based on the appraised value, so a low appraisal can mean bringing more cash to closing, renegotiating the price, or walking away within your contract deadlines. It helps to plan for that possibility before you write an offer. (See how luxury and custom homes are priced and what happens if a home doesn't appraise.)

Colorado Springs specifics

  • Timing: jumbo underwriting can take longer. Ask your lender how long approval takes, and set the loan and appraisal deadlines in your purchase contract to match. (See how long it takes to close.)
  • Insurance: your lender will need proof of homeowners insurance before closing. On higher-value homes, especially in wildfire-prone areas, get a quote during your inspection period, not the week before closing. (See what to know about buying a luxury home.)
  • The full monthly cost: a jumbo payment is only part of the picture. Add property taxes, any metro district fees, HOA dues, and insurance before you decide what you can afford. (See how much house you can afford.)

Where I fit

I'm not a lender, and I don't make loan recommendations. What I can do is connect you with lenders who regularly make jumbo loans here, so you can compare more than one. We aren't paid for any referral. If you'd like a few names to start with, let's talk.

What could change the answer

  • Next year's limit: the conforming limit usually changes each January.
  • Your down payment: a larger down payment can keep you under the limit entirely.
  • Your income type: self-employment, investment, or retirement income can change the documentation and the lenders who fit.
  • The property: acreage, wells, or unusual construction can affect which lenders will finance the home.
  • VA eligibility: full VA entitlement changes the picture for eligible buyers.

When to talk with a professional

A lender who regularly makes jumbo loans can tell you what you'll qualify for, what documentation you'll need, and how long approval will take. A CPA can explain how a larger mortgage affects your taxes, since the mortgage interest deduction has limits on larger loans. If you're a veteran, a VA-experienced lender can explain how your entitlement applies.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate After 50™, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

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