Jumbo loan
A mortgage that exceeds the conforming loan limits set for Fannie Mae and Freddie Mac, often with stricter qualifying requirements.
What does jumbo loan mean?
A jumbo loan exceeds the conforming limits set for Fannie Mae and Freddie Mac, so it cannot be sold to them and the lender carries more risk. That usually means stricter qualifying — larger down payments, stronger credit and deeper reserves — though rates are often competitive with conforming loans. Jumbos are common in high-cost housing markets where ordinary prices outrun the conforming cap.
Frequently asked
What is the jumbo loan limit?
A loan is jumbo once it exceeds the conforming limit for its county — $832,750 in most of the U.S. for 2026, and up to $1,249,125 in high-cost areas.
Anything above the local cap cannot be bought by Fannie Mae or Freddie Mac.
Are jumbo loan rates higher?
Not necessarily — jumbo rates are often competitive with, and sometimes below, conforming rates. The bigger difference is qualifying: jumbos typically demand a larger down payment, stronger credit and several months of cash reserves.
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