Understanding whether your refinancing balance falls within FHFA conforming limits or triggers jumbo mortgage underwriting determines reserve asset requirements.
1. Conforming vs. Jumbo Underwriting Standards
| Underwriting Dimension | Conforming Conventional Loan | Jumbo Non-Conforming Mortgage |
|---|---|---|
| FHFA Loan Limit (Baseline) | Up to $766,550 ($1,149,825 high-cost areas) | Balances exceeding conforming caps |
| Minimum FICO Credit Score | 620 Minimum (Best pricing ≥ 740) | 680–700 Minimum (Best pricing ≥ 760) |
| Post-Closing Asset Reserves | 0 to 2 Months PITI | 6 to 12 Months Post-Closing PITI Reserves |
| Appraisal Requirement | Single appraisal or Automated Valuation (PIW) | Often requires 2 independent physical appraisals |