What Is a Jumbo Loan?
A jumbo loan is a US mortgage that exceeds the conforming loan limit set each year by the Federal Housing Finance Agency. Because it is too large to be bought by Fannie Mae or Freddie Mac, lenders take on more risk and often require higher credit scores, larger down payments, and more cash reserves.
Conforming Loan Limits
The limit is updated annually and is higher in high-cost areas, so whether a loan counts as jumbo depends on the year and the county.
Rates
Jumbo rates can be higher or lower than conforming rates depending on market conditions.
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🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Assessed Value
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.