Jumbo Loans in Raleigh: How to Finance Your Next Luxury Home

Raleigh has transformed into one of the Southeast’s hottest real estate markets, with tech jobs, medical centers, universities, and a vibrant “Inside the Beltline” lifestyle all pushing prices higher.

If you’re looking at homes in Raleigh’s luxury neighborhoods, you’ll quickly notice many listings that sit well above the standard conforming loan limit. That’s where jumbo loans come in.

For 2026, the conforming loan limit in Wake County is $832,750 for a 1-unit home. Any loan amount above that is considered a jumbo mortgage. If you’re eyeing a $1.3 million home in Hayes Barton or a $1.8 million property in North Hills, you’re firmly in jumbo territory.

The good news: you don’t always need 20% or 30% down to compete. Qualified North Carolina buyers can commonly access 95% jumbo loans up to $2 million and 90% jumbo loans up to $3 million, along with VA jumbo loans that may offer 100% financing up to $2 million for eligible Veterans. Let’s walk through how these options work, where they’re most useful around Raleigh, and the pros and cons of each program.

💡 WHAT MAKES A LOAN “JUMBO” IN WAKE COUNTY?

A jumbo loan is any mortgage that exceeds the local conforming loan limit. For 2026 in Wake County, that threshold is $832,750 for a 1-unit property. *Please find the chart below for muti-unit properties.  If your loan amount is $900,000, you’re in jumbo territory, even if the home price is closer to $950,000 with a bigger down payment.

Key points:

• Conforming limit: $832,750 (1-unit, 2026, Wake County)

• Any loan amount above this is jumbo

• Jumbo loans are not backed by Fannie Mae or Freddie Mac

• Guidelines are set by individual lenders and investors

• Underwriting is often more detailed than smaller conventional loans

📌 WHO BENEFITS MOST FROM LOW DOWN PAYMENT JUMBO LOANS?

Many Raleigh buyers could easily afford the monthly payment on a $1.2–$2 million home, but don’t have 20% or 30% sitting in a bank account—or simply prefer not to tie up that much cash. Low down payment jumbo loans with 5% or 10% down can be ideal for:

• High-income professionals

  • Physicians, attorneys, tech employees, and executives moving to Raleigh for work

  • Strong income and credit, but limited liquid savings or large student loans

• Relocation buyers

  • Families moving from higher-cost states who sold a home but are using some equity for other goals

  • Want to buy quickly without waiting for existing home to sell, or to save an extra 10–15%

• Growing families upgrading neighborhoods

  • Buyers moving from a starter home into a larger, more centrally located property

  • Need to keep cash on hand for renovations, college savings, or business investments

• Self-employed and business owners

  • Strong earnings but cash tied up in their company or investments

  • May combine bank statements, reserves, and a smaller down payment to qualify

• Investors buying higher-end primary residences

  • Buyers who could put 20–30% down but prefer to leverage historically competitive rates and keep money working elsewhere

🌆 WHERE RALEIGH JUMBO LOANS ARE MOST COMMON

Some Raleigh neighborhoods see luxury prices as the norm, not the exception. In these areas, jumbo financing is often the default choice rather than a niche product. Popular high-cost and luxury neighborhoods in and around Raleigh include North Hills, various “Inside the Beltline” (ITB) enclaves, Hayes Barton, Five Points, and Country Club Hills.

In many of these neighborhoods, it’s common to see homes listed from $1 million to $3 million or more, especially for new construction, large lots, or homes close to downtown and top schools. That’s why understanding jumbo options is critical if you want to live in:

• Hayes Barton (historic, tree-lined streets with million-dollar homes)

• North Hills / Midtown (walkable, high-end shopping, dining, and luxury single-family homes)

• Five Points (charming older homes near downtown with premium pricing)

• Country Club Hills and nearby ITB areas (spacious lots and custom homes)

📈 OVERVIEW OF RALEIGH JUMBO OPTIONS: 95% AND 90%

Here’s a quick snapshot of the jumbo programs many Raleigh buyers consider:

• 95% jumbo loan (5% down)

  • Up to $1.3 -$2 million loan amounts (depending on location)

  • Usually requires700+ credit, low debt-to-income (DTI), and solid reserves

  • Ideal for buyers who need maximum leverage but are comfortable with a higher monthly payment

• 90% jumbo loan (10% down)

  • Up to $3 million loan amounts

  • Slightly easier to qualify for than 5% down because the lender’s risk is lower

  • Good balance between keeping cash and securing a more competitive interest rate

• Traditional higher-down-payment jumbo

  • 15–20%+ down with a single loan

  • Often best pricing and lower monthly payment

  • Ideal for buyers with ample liquid assets and a focus on long-term payment comfort

🧮PIGGYBACK COMBO MORTGAGES TO AVOID PMI 

Another strategy Raleigh buyers sometimes use is a piggyback combo mortgage. Instead of taking one large first mortgage with a small down payment, you structure the financing as:

• First mortgage at 80% of the purchase price

• Second mortgage or HELOC at 5–15%

• Your down payment covering the remaining 5–15%

Example structures:

• 80/10/10 (90% Financing)

  • 80% first mortgage (often conforming or jumbo)

  • 10% second mortgage

  • 10% down payment

• 80/15/5 (95% Financing)

  • 80% first mortgage

  • 15% second mortgage

  • 5% down payment

Because the first mortgage is at 80% loan-to-value (LTV), there is typically no private mortgage insurance (PMI). This can reduce your monthly payment compared to a single small-down-payment loan that includes PMI.

However, you’ll have two loans to manage, and the second mortgage rate can be higher than the first. Piggyback loans are worth a conversation if you want to avoid PMI and keep the first mortgage at 80% LTV.

🎖️ VA JUMBO LOANS IN RALEIGH: 100% FINANCING

Raleigh has a strong population of active-duty service members and Veterans who may be eligible for VA home loan benefits. For qualified Veterans with full VA entitlement, select lenders and banks offer 100% financing even at jumbo loan amounts, often up to about $2 million, subject to credit, income, and overall profile.

Key features of VA jumbo loans:

• 100% financing up to $2 million with some lenders

• Even higher loans exceeding $2m available with a 5%-10% down payment

• No monthly PMI, even with zero down

• Competitive interest rates compared to many other low-down-payment options

• Flexible guidelines on credit and debt-to-income ratios

• One-time VA funding fee (which can be financed into the loan in many cases), unless exempt due to disability

• Available for primary residences only

In Raleigh, a VA jumbo loan can be a powerful tool for Veterans who want to purchase in higher-cost neighborhoods without needing a huge down payment.

💼 TYPICAL CLOSING COSTS FOR JUMBO LOANS IN RALEIGH

Jumbo loans usually come with higher loan amounts, and sometimes the closing costs scale accordingly. While your exact numbers will vary by lender and property, here’s what Raleigh buyers generally see:

Common jumbo closing costs:

• Lender fees

  • Origination or underwriting fees

  • Discount points (optional) if you choose to buy down the rate

• Third-party costs

  • Appraisal and Survey (often higher for luxury properties, especially if unique)

  • Credit report and verification fees

  • Title search and title insurance

  • Attorney or settlement fees (North Carolina is an attorney-closing state)

• Government and recording fees

  • Recording the deed and mortgage

  • Transfer taxes (if applicable)

• Prepaid items and escrows

  • Prepaid interest

  • Property taxes and homeowner’s insurance

  • Sometimes HOA dues or special assessments

As a rough range, jumbo loan closing costs often run around 2–5% of the loan amount, depending on whether you pay discount points, the complexity of the property, and how much the seller contributes.

✅ PROS AND CONS OF EACH PROGRAM

LOW DOWN PAYMENT JUMBO (95% AND 90%)

Pros:

• Buy sooner without waiting years to save 20–30% down

• Keep more of your cash invested or in reserves

• Access high-cost neighborhoods and new construction in Raleigh

• No monthly PMI in many lender programs (pricing is built into the rate instead)

Cons:

• Higher monthly payments compared to 20% down

• Stricter credit and income requirements

• Larger reserves often required (months of mortgage payments in the bank)

• Interest rates may be slightly higher than those for large-down-payment jumbo loans

PIGGYBACK COMBO MORTGAGES

Pros:

• Avoid PMI by keeping the first mortgage at 80% LTV

• Many times breaking up the first mortgage can keep the primary loan amount at or below the conventional loan limit (better rates)

• Potentially lower monthly payment compared to a single loan with PMI

• Flexibility to pay down or refinance the second mortgage later

Cons:

• Two separate loans to manage (two payments, two sets of terms)

• Second mortgage/HELOC rate can be higher and may be variable

• Closing costs may be slightly higher due to multiple loans

• More complex underwriting and documentation

VA JUMBO LOANS

Pros:

• Potential 0% down payment up to $2 million with many lenders

• No monthly PMI, even with 100% financing

• Competitive interest rates, especially for strong credit profiles

• Flexible guidelines that can be more forgiving than some conventional jumbo programs

• Huge benefit for Veterans buying in high-cost areas neighborhoods

Cons:

• Must be eligible Veteran or surviving spouse to qualify

• Primary residence only – not available for vacation homes or investments

• VA funding fee adds to the overall cost unless you’re exempt

• Some sellers misunderstand VA loans and may have outdated concerns (though modern VA loans are generally smooth)

🤝 HOW TO CHOOSE THE RIGHT JUMBO STRATEGY IN RALEIGH

Choosing the right jumbo loan is all about balancing four things:

• Down payment you’re comfortable parting with

• Monthly payment and long-term affordability

• How long you plan to stay in the home

• Your eligibility for special programs like VA loans

If you are a Veteran with full entitlement, a VA jumbo loan with 0% down and no PMI is often the first option to explore. For non-Veterans, a 5% or 10% down jumbo can open doors to neighborhoods that might otherwise take years of saving to afford. Buyers with higher assets and a more conservative mindset may still prefer 20% down to keep payments lower and reduce long-term interest.

📞 NEXT STEPS FOR RALEIGH HOME BUYERS

If you’re thinking about buying or refinancing a luxury home, the first step is a detailed conversation with us to review all your options.  Connect with us 7 days a week by calling, or just submit the Info Request Form on this page.