Jumbo Loan
A mortgage larger than the conforming loan limit, not eligible for purchase by Fannie Mae or Freddie Mac.
What does jumbo loan mean?
Jumbo loans exceed the FHFA limit — above $832,750 in most 2026 areas — so they carry more lender risk and usually require stronger credit, a larger down payment and bigger cash reserves. Their rates can run higher than, or sometimes competitive with, conforming loans.
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Jumbo Loan — frequently asked
What is a jumbo loan?
A jumbo loan exceeds the conforming loan limit set by the FHFA, so Fannie Mae and Freddie Mac cannot buy it. Lenders keep or privately sell these loans and apply stricter credit, income and down-payment standards.
Are jumbo loan rates higher?
Not always. Because lenders hold more risk, jumbo rates were traditionally higher, but strong-credit borrowers sometimes get rates at or below conforming loans. Expect tighter requirements — bigger down payments and cash reserves.