Jumbo and High-Rise Condo Loans in Chicago (2026)

Last reviewed: September 25, 2026 · Chicago Condo Loans Editorial Team · How we research

Quick answer: In Chicago, a condo loan is a jumbo loan when the amount borrowed is above $832,750, the 2026 conforming limit for Cook County. Jumbo lenders set their own down payment, credit, reserve and building-review rules, because the loans aren’t sold to Fannie Mae or Freddie Mac. Whatever the loan size, high-rise buildings get extra scrutiny: lenders look at commercial space (generally capped at 35% for Fannie Mae and FHA), hotel-style operations, unfunded structural or façade repairs, litigation, and the master insurance deductible. In Chicago, buildings 80 feet or taller must also have their exterior walls inspected under the city’s façade ordinance, so ask for the latest report.

This guide is part of our complete guide to Chicago condo loans.

Key takeaways

$832,750 is the 2026 one-unit conforming limit in Cook County. Loans above it are jumbo; Cook County has no separate high-balance tier.
The limit is on the loan, not the price. With 20% down, you can buy up to about $1,040,937 with a conforming loan.
Jumbo lenders write their own rules for down payment, reserves, and which condo buildings they’ll lend in.
High-rise red flags for conventional and FHA loans: more than 35% commercial space, hotel-like operation, unfunded critical repairs over $10,000 per unit due within 12 months, and litigation over safety or structural issues.
Master insurance deductibles for Fannie Mae loans can’t exceed 5% of the coverage amount per occurrence or $50,000 per unit.
New towers need at least 50% of units sold or under contract before most units qualify for a conventional loan under a Fannie Mae full review.

When is a Chicago condo loan a jumbo loan?

A conforming loan can be sold to Fannie Mae or Freddie Mac and must be at or below the Federal Housing Finance Agency’s (FHFA) limit. For 2026 the one-unit limit is $832,750 in most of the country, including Cook County. Some high-cost areas have limits up to $1,249,125, but Cook County isn’t one of them, so there is no high-balance conforming loan in Chicago. Anything above $832,750 is jumbo.

Because the limit applies to the loan amount, your down payment decides whether you need a jumbo loan:

Down payment	Highest price that keeps the loan at $832,750 or less
3%	About $858,505
5%	About $876,578
10%	About $925,277
20%	About $1,040,937

Calculated from the 2026 FHFA one-unit conforming limit of $832,750. Closing costs aren’t included.

FHA loans have a lower ceiling: the 2026 FHA limit for a one-unit property in Cook County is $541,287.

How are jumbo condo loans different?

Fannie Mae’s and Freddie Mac’s rules don’t bind a jumbo loan. The lender keeps it or sells it to a private investor, and that lender or investor sets the terms. In practice that means:

Down payment and credit are set by the lender. Minimums are often higher than for conforming loans, and they can change with the loan size.
Reserves. Many jumbo lenders want several months of mortgage payments in savings after closing. Ask each lender for its number.
The building review is the lender’s own. Many jumbo lenders look at the same issues the agencies do, such as reserves, litigation, insurance, delinquencies and commercial space, but each draws its own lines. A building that fails Fannie Mae’s review may still be acceptable to a jumbo lender, and the reverse can also happen.
Pricing. The CFPB notes that a jumbo loan may cost more than a conforming loan. Fannie Mae’s condo pricing adjustment doesn’t apply, but the lender prices the risk its own way.
Federal ability-to-repay rules still apply. The lender must make a reasonable, good-faith determination that you can repay.

If you’re close to the limit, compare a jumbo loan with a larger down payment that keeps the loan conforming, or with a conforming first mortgage plus a second mortgage. For how down payment affects conforming loan costs on condos, see condo down payment and PMI in Chicago.

What do lenders check in a Chicago high-rise?

Large downtown and lakefront buildings raise issues that smaller buildings rarely do. These are the agency rules most likely to decide whether a high-rise is warrantable:

Issue	Fannie Mae rule (conventional)	Why it matters in high-rises
Commercial space	No more than 35% of the project’s total square footage (FHA also generally caps it at 35%)	Mixed-use towers with retail, offices, hotel floors or rental apartments can exceed it
Hotel-like operation	Projects run as hotels or motels are ineligible	Condo-hotels and buildings with rental pools or front-desk rental programs
Critical repairs	Unfunded repairs over $10,000 per unit needed within 12 months, or safety or structural deficiencies, make a project ineligible until fixed and documented	Façade, concrete, balcony, garage and plumbing-riser work can be very costly
Special assessments	Lender must review each one’s purpose, amount and timeline	Large assessments for structural work often follow façade inspections
Litigation	Litigation over safety, structural soundness, habitability or functional use makes a project ineligible, with narrow exceptions for minor litigation	Construction-defect suits are common in newer towers
Reserves	At least 10% of budgeted assessment income now; 15% for full reviews starting January 4, 2027	Big buildings have large, expensive systems to replace
Master insurance deductible	No more than 5% of the coverage amount per occurrence, and no more than $50,000 per unit	High-rise premiums and deductibles have risen, especially for water damage

Sources: Fannie Mae Selling Guide B4-2.1-03 and B7-3-03 (August 5, 2026); Fannie Mae LL-2026-03. FHA and jumbo lenders apply their own standards.

For how these issues make a building non-warrantable and what financing is left, see warrantable vs. non-warrantable condos in Chicago. For how to read the documents yourself, see the condo questionnaire and HOA review.

How does Chicago’s façade ordinance affect high-rise buyers?

Chicago requires owners of buildings 80 feet or taller to have their exterior walls inspected by, or under the supervision of, an Illinois-licensed architect or structural engineer, and to file reports with the Department of Buildings. Detailed critical examinations run on cycles of 4 to 12 years depending on how the walls are built, with shorter-form inspections in between. The city’s filing deadlines are November 1 for short-form reports and December 1 for critical examinations.

For a buyer, the reports are an early warning. An inspection that finds unsafe conditions or major repairs can lead to a large special assessment, and repairs that are unfunded can make the building ineligible for conventional financing until they’re done. Ask the association for:

The most recent critical examination and any later short-form reports
Any repair plan, contractor bids, and how the work will be paid for (reserves, a loan, or a special assessment)
Whether the city has cited the building for façade conditions

What should you know about insurance in a high-rise condo?

The association’s master policy covers the building, but you’re usually responsible for part of any loss. Under Fannie Mae’s rules, the master policy must cover 100% of the estimated replacement cost of the project improvements, and its deductible can’t be more than 5% of the coverage amount per occurrence or $50,000 per unit. If any part of your unit’s interior or improvements isn’t covered by the master policy, or the policy uses a per-unit deductible, you need your own unit owner’s (HO-6) policy.

Ask how the association assigns the deductible after a loss that starts in one unit, such as a burst pipe that damages the floors below. Your agent can then size your HO-6 coverage, including loss assessment coverage, to match.

Can you get a mortgage in a Chicago hotel condo?

Usually not a conventional or FHA loan. Fannie Mae treats projects managed and operated as hotels or motels as ineligible, even when the units are individually owned. Signs include:

A hotel, motel or resort license, or management by a hotel company
Mandatory rental pooling, shared rental profits, or limits on when owners can use their own units
Hotel-style services such as registration, daily rentals and cleaning
Marketing as a hotel or investment, or a hotel rating on travel booking sites
Warning signs such as very small units (under 400 square feet) or adjoining interior doors between units

Buyers in these buildings typically need a portfolio or non-QM loan, often with a much larger down payment and higher rate. Ask whether a building is a condo-hotel before you make an offer.

Can you finance a unit in a new Chicago condo tower?

For a conventional loan, new and newly converted projects go through Fannie Mae’s full review with extra requirements:

Presales: at least 50% of the units in the project or legal phase must be sold or under contract to buyers who will live there or use it as a second home.
Completion: the building or phase must be substantially complete, with a certificate of occupancy, and your unit must be ready to move into at closing.
One legal phase per building.

Early buyers in a tower that hasn’t reached 50% presales may need a jumbo or portfolio lender whose own rules allow it, or the developer’s preferred lender. Confirm the financing plan before you sign a purchase contract.

A checklist for jumbo and high-rise buyers

Work out whether your loan will be over $832,750, and price both a jumbo loan and a conforming loan with a larger down payment.
Ask lenders early whether the building is warrantable, and whether their jumbo program will lend in it.
Request the Section 22.1 disclosures, the budget, the reserve study, and the latest façade reports.
Ask about pending or planned special assessments and any litigation.
Get the master policy’s deductible and ask how it’s assigned to owners.
Check the share of commercial space and whether any rental or hotel program operates in the building.
For new construction, ask how many units are sold or under contract and when the certificate of occupancy was issued.

Frequently asked questions

When does a Chicago condo loan become a jumbo loan?

When the loan amount is above $832,750, the 2026 conforming limit for a one-unit property in Cook County. The limit applies to the loan, not the price, so with 20% down a purchase price up to about $1,040,937 can still use a conforming loan. Cook County has no separate high-balance tier.

Do jumbo lenders follow Fannie Mae’s condo rules?

Not necessarily. Fannie Mae’s project standards apply to loans sold to Fannie Mae. Jumbo loans are held by the lender or sold to private investors, so each lender sets its own building review. Many use similar checks, such as reserves, litigation, insurance, commercial space and hotel-like operations, but the details vary by lender.

Can I get a conventional loan in a Chicago hotel condo?

Usually not. Fannie Mae treats projects operated as hotels or motels as ineligible, including those with mandatory rental pooling, restrictions on owner occupancy, or hotel-style services such as registration and daily rentals. Buyers typically need a portfolio or non-QM loan with a larger down payment.

What is the maximum commercial space in a condo building for a conventional or FHA loan?

Generally 35% of the project’s total square footage for both Fannie Mae and FHA. Mixed-use high-rises with large retail, office, hotel or rental-apartment components can exceed that and become ineligible for agency financing.

How big can a high-rise master insurance deductible be?

For Fannie Mae, the master property policy deductible can’t exceed 5% of the policy’s coverage amount per occurrence, and a per-unit deductible can’t exceed $50,000 per unit. When the policy uses a per-unit deductible, the buyer needs their own unit owner’s policy.

Can I finance a unit in a new Chicago condo tower before it sells out?

For a conventional loan under a Fannie Mae full review, at least 50% of the units in the project or legal phase must be sold or under contract to owner-occupants or second-home buyers, and the building must be substantially complete with a certificate of occupancy. Jumbo lenders set their own presale rules.

Sources

This guide is educational and is not lending, legal, or financial advice. Chicago Condo Loans is not a lender or broker. Rules and pricing change and every building and borrower is different, so confirm details with a licensed mortgage professional and an Illinois attorney. See our Disclaimer.